Texton Property Fund Limited (Texton) announced a partial sale of its investment in the Blackstone Real Estate Income Trust iCapital Offshore Access Fund SPC. This move aligns with the company’s strategy to recycle capital for offshore investments.
Introduction to the Sale
Texton’s subsidiary, Texton Property Investments UK Limited (TPI), acquired 9,559.6383 Class I shares in the Access Fund during the 2023 financial year. On June 30, 2024, TPI redeemed 4,614.1917 shares, marking a significant partial divestment.
Strategic Rationale
TPI invested in the Access Fund, managed by iCapital Advisors, LLC, to increase offshore property exposure. The Access Fund invests mainly in income-generating U.S. commercial real estate through Blackstone Real Estate Income Trust, Inc.
This investment has provided TPI with stable monthly cash distributions, achieving an attractive yield. The ability to exit through a share repurchase plan added flexibility. Given the distributions and returns, TPI decided to redeem part of the investment to realize these gains.
Sale Terms
The redemption and payment process is unconditional. Based on the May 31, 2024, valuation, 4,614.1917 shares were sold.
Financial Impact
The shares were redeemed at a ZAR value of R110,291,394. This compares favorably to the average acquisition price of R91,968,760. Including total monthly distributions received during the hold period, the investment yielded an approximate total holding period return of 31.05%.
Financial Summary
| Metric | Value |
|---|---|
| Redemption Value | R110,291,394 |
| Average Acquisition Price | R91,968,760 |
| Total Holding Period Return | 31.05% |
Conclusion
Texton’s strategic partial divestment from the Access Fund highlights its commitment to optimizing its investment portfolio. The move is in line with its long-term strategy to enhance offshore property exposure and deliver attractive returns to shareholders.