Investment Matters

Company News

Australian Equities Portfolio

Worley (positive impact)announced that it has entered into two new agreements. The first is a five-year agreement with Sasol South Africa (specifically Synfuels, which develops coal based synthetic fuels) to design, engineer and construct future projects in its portfolio. The second agreement is a joint venture with the Atomic Energy Development Agency of Uzbekistan (Uzatom). Under the joint venture Worley will provide engineering services for nuclear power facilities and nuclear infrastructure in Uzbekistan, at a time where the country is looking to build 2 new nuclear reactor units.

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Southern Cross Media (neutral impact) refinanced its existing $500m debt facility, with a new $435m facility and 1-year revolving $25m facility. Covenants will be similar to its existing facility. The company has significantly reduced its level of debt over the past five years (from $588 m in June 2014, to $325m most recently).

 

Property Portfolio

Centuria Metropolitan REIT (positive impact)completed a placement to institutional investors, raising approximately $185m (relative to its market capitalisation of approximately $1.3 billion). The funds, along with the drawing of an existing debt facility will be used to purchase an office building in Canberra for $256m. The property is 99.7% occupied and has a weighted average lease expiry of 7.9 years. The trust has also revalued 8 of its existing properties, resulting in a gross increase in the value of $30.8m or 3.4% on prior the valuations of these properties.

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Total Return Fund (TOT) (positive impact) announced the approval of its merger with URB investments Limited (URB) which has become effective.  URB owns a combination of property related equities and direct property investments.  The merged entity will be larger and have a more diverse shareholder base.