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Source: News Bites


Becton Investment Management Ltd, the funds management arm of the Becton Property Group, has completed further asset sales as part of its broader capital management strategy and has launched an entitlement offer for the Becton Industrial Fund (BIF).

BIF completed the sale of two properties last week, namely 21 Wolston Road, Sumner and 7-31 Keys Road, Moorabbin, Victoria.

The properties were sold on yields of 9% and 10.2% respectively.

The sale of the Moorabbin property followed the completion of a capital works program associated with a new lease to Amcor.

The sales realised a total of $16.5 million for BIF, bringing the total value of sales in the fund over the past 12 months to $52 million.

The sales are part of a capital management strategy over the last 18 months for BIF and have been completed at a comparable level to the combined book values.

Proceeds from the sales have been used primarily to reduce debt with the post sale fund LVR reduced from 56% to 54% against a covenant of 62.5%.

The fund has also recently negotiated a $250 million senior debt facility with the National Australia Bank.

Becton has also announced a 1 for 4 non-renounceable offer at 51c per unit, a 46% discount to the current unit price, to raise up to $23 million.

Proceeds are aimed at primarily reducing debt, fully subscribed would see the fund's loan to value ratio at 51%, leaving Becton well placed when the property market turns.