Abacus Property Group, an Australia-based, publicly traded diversified real estate investment trust (REIT) with interests in office, residential, retail and self-storage properties, recently raised $250 million to help fund portfolio expansion within the office and self-storage sectors. The company is pursuing more than $710 million in investment opportunities in those two markets, while actively reducing its residential and retail holdings, according to a source.
The REIT has targeted funds to increase its stake in the Australian Unity Office Fund and finalize the acquisition of an off-market office property. It also intends to use the raised capital to pursue self-storage acquisition and development opportunities.
The company closed about $180 million in self-storage acquisitions during the last year and has an additional $63 million under contract, with $34 million in deals under consideration, the source reported. Its development pipeline includes about 35,000 square meters, with anticipated annual returns of more than 9 percent. Abacus also owns a minority interest in U.K. self-storage operator Storage King, which also has facilities in Australia and South Africa.
Abacus recently disposed about $150 million of residential investment as well as reworking its retail portfolio. Its moves include entering a joint venture with Australian property group ISPT, in which it retained a 50 percent share in two of its retail assets.
As of June 30 last year, Abacus owned and managed 62 self-storage assets comprising 287,725 square meters, according to its website.