Property Flash


July 31 2023

JSE-listed international real estate business, Investec Property Fund, is has proposed to rebrand as Burstone Group.

The name change is subject to approval by shareholders at a general meeting which will be held on August 31. The change follows the the successful internalisation of the fund’s asset management functions across South Africa (SA), Europe and Australia, which were previously undertaken by Investec. Shareholders approved the internalisation in May and competition approval was granted in June. Investec owns 24% of Investec Property Fund.

The fund is now a fully integrated international real estate company. CEO Andrew Wooler said he and his team aim to pursue its capital-light funds management strategy across the business. 

“The new name reflects our vision to be a dynamic and agile fully integrated international real estate business, with a strong heritage, that has the unique ability to identify potential and unlock value for our shareholders and partners,” said Wooler.

“We have a long history of creating, building and managing real estate businesses. Across the globe our people have the know-how, the heritage, the ability and the tenacity to transform the ordinary into the extraordinary,” he said.

The fund has about R35bn worth of investments under management and around R5bn in third-party capital under management across SA, Europe and Australia. Investec Property Fund (IPF) listed on the JSE in 2011.

In South Africa, the Fund directly owns a diversified portfolio of 79 properties in the retail, industrial and office sectors valued at R14.6bn. About 56% of the Fund’s asset base is comprised of foreign investments, largely an effective 83% interest in its Pan-European logistics portfolio worth about €1.1bn. This platform was established in 2017 and consists of 47 logistics properties that are located in the major logistics corridors of seven European countries, including Germany, France and the Netherlands, which together comprise about 70% of the portfolio.

IPF recently entered the Australian market through its circa 18.7% investment in the Templewater Australia Property Fund and its 50-50 joint venture with Irongate Australia Fund Management, a platform that was originally founded in 2006. These initiatives provided the Fund with an opportunity to further scale its funds management strategy.

Internationally, Wooler said the fund invested in, and built platforms in markets where its operating teams had extensive on-the-ground experience and proven track records.

“The fund invests in local and international property assets that are of the best quality with the purpose of delivering attractive long-term returns and unlocking value,” he said.

“We have had a long and proud heritage under the Investec brand name. It is time now for us to build on that foundation and deliver on our strategic plans following the internalisation of our asset management functions,” he said.

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