The $300 million urban renewal company URB Investments, set to list on the ASX on April 7, has arranged for more than $59 million worth of property purchases as its seed investments.
The listed investment company, which is to be externally managed by Contact Asset Management chief executive Tom Millner and portfolio manager Will Culbert, is focusing on properties in areas where new infrastructure investment has been confirmed or is underway.
The company is also looking to buy into about 35 listed equities out of about 89 it had identified as having some positive exposure to the massive infrastructure investment currently underway, including Transurban, Lendlease, Goodman Group, Qube and Ramsay Health Care.
“There are significant opportunities to investment in direct property where infrastructure is coming online,” Mr Millner, son of Robert Millner, chairman of the Washington Soul Pattinson conglomerate, said.
“The valuation upside from a change in use from these existing properties that will be now used because of this new infrastructure is significant, creating vibrant and exciting new town centres and rejuvenating old ones.”
The company which is seeking to raise $300 million through joint lead managers CBA, Morgans and Bell Potter has secured its first property near Port Botany at 2 The Crescent Kingsgrove, Sydney. The 18,000 square metre logistics property will have a price tag of $15.85 million.
The company expects increases in value out of the property through potential subdivision.
The second property is a 69,400sq m land holding at 55 Yarrunga Street Prestons, also in Sydney, which the company intends to buy for $20 million. It expects a revaluation opportunity upon completion of a development on the land.
The third seed asset will be a 6400sq m office and retail property at 510-5336 High Street, Penrith, not far from the Badgerys Creek airport site.
All three properties will be purchased jointly with Washington H Soul Pattinson, which is expected to be a cornerstone investor in the listed company.
While the three seed assets are in Sydney, Mr Millner said the listed company would seek opportunities across the country where infrastructure projects were taking place.
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