Texton Property Fund has doubled its stake in US-focused Starwood Real Estate Income Trust’s offshore fund to $7m (R111.2m), bolstering its indirect offshore property exposure as the group seeks opportunities in developed markets.
Texton, which owns properties in the UK and SA, said on Monday it was eyeing regular distributions from Starwood, while it has a “strong conviction in the investment themes and sector tailwinds that are supported by a growing US economy.”
The company made an initial $3.5m investment in December, and the latest purchase means it will hold 0.21% of the fund’s class one shares.
The fund invests in Maryland-based Starwood Reit, which has total assets under management of $18.2bn, consisting of 334 properties that are currently 96% occupied. The fund comprises 70% residential buildings, , 15% industrial and 8% office.
Texton, which was formed in 2006 and listed on the JSE in 2011, was known as Vunani Property Investment Fund until 2014.
At the end of its 2021 financial year, Texton had 42 properties worth R3.6bn, 35 of which are located in SA — just over 60% of its asset value.
Texton has made clear it is seeking opportunities as the global real estate market evolves, but is looking primarily at developed markets, which have been supported by strong government stimulus during Covid-19.
In afternoon trade on Monday, Texton’s shares were trading 2.7% lower at R3.60, having risen 10.6% over the past six months.
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