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Abacus Property Group (ABP)
is a publicly listed company on the Australian Securities Exchange (ASX).
About Abacus Property
Abacus Property Group is a diversified property group that specialises in investing in core plus property opportunities across Australia's commercial property markets. Abacus was established in 1996 and was listed on the ASX in November 2002. Abacus has achieved a successful track record of acquiring property based assets and actively managing those assets to enhance income and capital growth. Abacus is included in the S&P/ASX200 index.
Abacus’ strategy is to invest their capital into core plus properties. They take advantage of value adding opportunities to drive long term total returns and maximise security holder value.
Abacus is first and foremost a property investor seeking to extract value through active management. They do this through the acquisition, development and management of property assets by:
- taking advantage of their specialised knowledge and market position as the only listed core plus investor;
- investing in core plus property investments that are expected to yield 12-15% per annum equity total returns over time;
- driving value through active management of the asset portfolio and through the reinvestment of sale proceeds.
Their core plus presence and track record has facilitated joint ventures with a number of sophisticated global third party capital providers across their portfolio of investment opportunities. They look for assets and projects in major centres, typically on the Eastern seaboard of Australia, that are mispriced by the market that they believe have the potential for income and capital growth.
Their experience has shown that strict adherence to their fundamental investment criteria enables Abacus to acquire assets well and provide opportunities for outperformance while minimising downside risk to equity.
Their investment objective is to provide their investors with reliable and increasing returns. They look for property assets that are capable of providing growth in:
- rental income; and
- asset value as a result of their diligent active management.
Abacus has three integrated property businesses built on their core expertise in accessing properties and projects and actively managing them to realise their full value. Their flat corporate structure and business model supports strong synergies across their businesses and contributes to the overall success of the businesses and the Group.
Abacus Property Group holds a diversified investment portfolio of office, storage, industrial and retail properties. Rental income from these properties is the largest contributor to the earnings of the Group. Abacus’ disciplined property selection process maintains a firm focus on fundamental real estate value.
As at 31 December 2014, Abacus Property Group had a total of $1.3 billion in property assets on the balance sheet. This total comprises the commercial portfolio ($865 million) and the storage portfolio ($443 million).
Interests in a number of the above are held through joint ventures which they equity account.
Abacus participates in a range of projects by combining their capital and property expertise with the regional or sector-specific expertise of their business partners.
Abacus has historically offered a wide range of high quality investment solutions designed to meet the needs of different groups of retail investors. The Group has now redirected its focus towards wholesale third party capital.
Abacus Property Group is a 'stapled' vehicle, which combines three companies, Abacus Group Holdings Limited, Abacus Group Projects Limited and Abacus Storage Operations Limited, and three trusts, Abacus Trust, Abacus Income Trust and Abacus Storage Property Trust. Investors acquire stapled securities, being shares in the companies stapled to units in the trusts.
The trusts are registered managed investment schemes under the Corporations Act. The responsible entity for the Abacus Trust and Abacus Income Trust is Abacus Funds Management Limited and the responsible entity for the Abacus Storage Property Trust is Abacus Storage Funds Management Limited, both of which are wholly owned subsidiary of Abacus Group Holdings Limited. Established in 1996, Abacus Funds Management is a specialist property investment company which holds an Australian Financial Services Licence (number 227819) and, through a subsidiary, also holds a real estate agent's licence.
The internalised management promotes the alignment of the interests of management with the interests of the Group's investors.
Abacus Funds Management Limited formed as subsidiary of Godfrey Pembroke Limited to source and package property-based investment opportunities for high net worth clients of GPL financial planners. Three funds were issued in 1996, with a total equity raising of $13.35 million.
Abacus became independent of GPL and broadened its financial planning distribution network.
Abacus merged a number of trusts and a small development company it established between 1996-1999 to form the Abacus Property Group, a stapled structure consisting of a trust and a company. Initial gross assets of $280 million included eight investment properties and a portfolio of high yielding mortgages.
December 2001 - August 2002
Abacus Property Group raised $54 million in additional equity under a prospectus dated 17 December 2001, using the proceeds to fund the acquisition of four new properties, expand the mortgage portfolio and participate in a series of property transactions.
Abacus Property Group acquired the business of Abacus Funds Management to form an integrated property investment group with an internal management structure. The Group's business activities now comprised property investment, property finance, funds management and joint venture projects.
Abacus Property Group listed on the Australian Stock Exchange with total Group assets of $420 million and total assets under management of over $450 million.
Abacus Property Group merged with the Abacus Diversified Income Fund, increasing Group assets to $835 million. Total assets under management exceed $1 billion.
Abacus Property Group included in the S&P/ASX 300 Index. Total assets under management over $1.8 billion.
Abacus Property Group included in the S&P/ASX 200 Index. Total assets under management approximately $2.3 billion.
Abacus Property Group raised a total of $211million under a rights issue and placement to new and existing securityholders. Proceeds were used to recapitalise the group in the anticipation of future acquisition opportunities as a result of the GFC. Abacus welcomed the Kirsh Group as a substantial cornerstone investor to the Group.
Abacus merged with its largest unlisted managed fund, Abacus Storage Fund. The merger added $330 million of quality storage assets to the Group’s portfolio.
Abacus Property Group
264-278 George Street
+61 2 9253 8600
Fax: +61 2 9253 8616
The General Overview, Services, Products and Projects information for this profile was last edited on 04 Feb 2016.