Abacus Property Group, an Australia-based, publicly traded, diversified real estate investment trust (REIT) with interests in self-storage, has raised $200 million in institutional investment by issuing 59.2 million new securities at $3.38 per share. The company intends to raise another $15 million through a share-purchase plan. It’ll use the funds to grow its self-storage footprint through acquisitions and expansion projects, according to the source.
“We are very pleased with the support received for the placement,” said Steven Sewell, managing director. “We thank our existing security holders for their ongoing support and welcome a number of new institutions to the Abacus register, which is expected to increase free-float market capitalization and improve Abacus’ index ranking and liquidity.”
The REIT has identified $266 million in potential investments. They include the purchase of 13 self-storage properties comprising 90,000 square meters and the expansion of 21 locations in major markets comprising 35,000 square meters, the source reported. Abacus has invested $1.8 billion in self-storage properties since 2017, including its purchase of the Storage King brand in 2020.
Abacus’ self-storage portfolio of 121 facilities is valued at $2.5 billion, according to the source. The REIT also has interests in office, residential and retail properties.
Source: Business News Australia, Abacus Locks Up $200 Million in Funding for Self Storage Portfolio Expansion