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Investment Trust Insider on recent new issues

10
2018
July

Investment Trust Insider on recent new issues – James Carthew: can Ashoka overcome a disappointing launch?

It has been a week of contrasts in the new issue market.

Tritax EuroBox (EBOX) raised its maximum target of £300 million in an issue that was ‘significantly oversubscribed’ and Hipgnosis Songs Fund (SONG) raised over £200 million. Whereas Ashoka India Equity (AIE) had to settle for launch proceeds of just £45.6m against a target of £100m.

SONG is an interesting fund, which I’ll revisit another time. The EBOX issue will go some way towards rebuilding the European property sector, which is just about to lose Alpha Pyrenees and AXA Property Trust. Both of these funds were launched into the euphoria surrounding property markets in the mid 2000s and were casualties of the credit crunch that followed swiftly after.

EBOX says that it has a €600 million pipeline of seven logistics properties and it hopes to be fully invested six to nine months from now. We can be fairly sure that EBOX will be coming back for more money once it is fully invested. For one thing, its fee structure is tiered with lower fees that kick in once NAV exceeds €1 billion and €2 billion.

EBOX will be a direct competitor to Aberdeen Standard European Logistics (ASLI). This fund raised £187.5 million in December 2017 and gave itself up to 12 months to get its issue proceeds invested. ASLI has made two acquisitions to date in Florsheim and Erlensee, both near Frankfurt. These two deals absorbed €53 million of its IPO proceeds.

ASLI says that it is in the advanced stages of… read more here

NB the correct code for Tritax Eurobox is BOXE (this was in the original article) and, in the second to last paragraph, the original read “Looking at years to 31 May, had AIE just matched the Mid Cap Index, its fee model would have meant no charge in 2018 but charges of 5.3% in 2017, 3.1% in 2016, 3.8% in 2015 and 3.9% in 2014 (there is a cap but this is set at 12%).”

BOXE / SONG / AIE / ASLI / IGC : Investment Trust Insider on recent new issues

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