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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 leading diversified property group. They specialise in investing in core plus property opportunities in Australia. Abacus was established in 1996. They listed on the ASX in 2002 and are included in the S&P/ASX 200 index.
Abacus is a stapled entity that combines the securities in 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 comprising the securities of all six listed entities.
Abacus’s overarching strategy is to invest their capital in core plus properties. They take advantage of value adding opportunities to drive long term total returns and maximise securityholder value.
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. 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 in the ASX 200;
- investing in core plus property investments that are expected to yield 12-15% per annum equity total returns over time; and
- driving value through active management of the asset portfolio and through the reinvestment of sale proceeds.
They have a successful track record of acquiring property based assets and actively managing those assets to enhance income and capital growth. Their core plus presence and track record has facilitated joint ventures with a number of sophisticated global third party capital providers. They look for assets and projects in major centres, typically on the Eastern seaboard of Australia, that are mispriced by the market and which they believe have the potential for income and capital growth.
Their experience has shown that strict adherence to their fundamental investment criteria enables them to buy assets well and provide opportunities for outperformance while minimising downside risk to equity.
Abacus has two 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 owns 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. Abacus seeks mispriced assets with short term imperfections in fundamentals, such as temporary flaws in leasing, management or capital structures. Abacus pursues transformational events that will drive asset value. As at 30 June 2017, Abacus Property Group had a total of $1.8 billion in property assets on the balance sheet. This total comprises the commercial portfolio ($1.2 billion) and the storage portfolio ($629 million). Since 2009 the Group has expanded its investment focus to include wholesale third party capital. Since then Abacus and its global investment partners have aquired over $1.6 billion of assets with global investment partners with $495 million of the Group's current commercial portfolio held via the third party platform.
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 Property Group 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 engages as a property development partner or finance provider. Abacus has developed a strong expertise over the years following the successful completion of a multitude of residential and commercial projects. As at 30 June 2017, Abacus Property Group had a total of $448 million in development and financing projects on the balance sheet.
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 acquired 70% of the World Trade Centre in Melbourne for $120 million in its first joint venture with leading global investment firm KKR. Abacus and KKR subsequently acquired Oasis Shopping Centre, Broadbeach QLD for $104 million in February 2015.
Abacus Property Group raised $107 million from existing securityholders to provide growth capital for anticipated acquisitions, development projects and third party capital initiatives.
Latest February 2017
Abacus Property Group has grown to a market capitalisation of over $1.7 billion. The group has total assets of circa $2.4 billion and a successful and growing third party capital platform that has invested in over $1.4 billion of property assets in joint venture with their capital partners.
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 24 Oct 2017.