Abacus Property Group is a leading diversified property group. We specialise in investing in core plus property opportunities in Australia. Abacus was established in 1996. We listed on the ASX in 2002 and are included in the S&P/ASX 200 index.
Abacus is a stapled entity that combines the securities in three companies, Abacus Group Holdings Limited, Abacus Group Projects Limited and Abacus Storage Operations Limited, and three trusts, Abacus Trust, Abacus Income Trust and Abacus Storage Property Trust. Investors acquire stapled securities comprising the securities of all six listed entities.
Abacus’s overarching strategy is to invest our capital in core plus properties. We take advantage of value adding opportunities to drive long term total returns and maximise securityholder value.
Our investment objective is to provide our investors with reliable and increasing returns. We look for property assets that are capable of providing growth in:
- rental income; and
- asset value
as a result of our diligent active management. We do this through the acquisition, development and management of property assets by:
- taking advantage of our specialised knowledge and market position as the only listed core plus investor in the ASX 200;
- investing in core plus property investments that are expected to yield 12-15% per annum equity total returns over time; and
- driving value through active management of the asset portfolio and through the reinvestment of sale proceeds.
We have a successful track record of acquiring property based assets and actively managing those assets to enhance income and capital growth. Our core plus presence and track record has facilitated joint ventures with a number of sophisticated global third party capital providers. We look for assets and projects in major centres, typically on the Eastern seaboard of Australia, that are mispriced by the market and which we believe have the potential for income and capital growth.
Our experience has shown that strict adherence to our fundamental investment criteria enables us to buy assets well and provide opportunities for outperformance while minimising downside risk to equity.
Abacus has three integrated property businesses built on our core expertise in accessing properties and projects and actively managing them to realise their full value. Our flat corporate structure and business model supports strong synergies across our businesses and contributes to the overall success of the businesses and the Group.
Abacus Property Group owns a diversified investment portfolio of office, storage, industrial and retail properties. Rental income from these properties is the largest contributor to the earnings of the Group. Abacus’ disciplined property selection process maintains a firm focus on fundamental real estate value. Abacus seeks mispriced assets with short term imperfections in fundamentals, such as temporary flaws in leasing, management or capital structures. Abacus pursues transformational events that will drive asset value. As at 31 December 2016, Abacus Property Group had a total of $1.7 billion in property assets on the balance sheet. This total comprises the commercial portfolio ($1.1 billion) and the storage portfolio ($613 million).
Abacus Property Group participates in a range of projects by combining our capital and property expertise with the regional or sector-specific expertise of our business partners. Abacus engages as a property development partner or finance provider. Abacus has developed a strong expertise over the years following the successful completion of a multitude of residential and commercial projects. As at 31 December 2016, Abacus Property Group had a total of $492 million in development and financing projects on the balance sheet.
Abacus has historically offered a wide range of high quality investment solutions designed to meet the needs of different groups of retail investors. Since 2009 the Group has redirected its focus towards wholesale third party capital and has aquired over $1.4 billion of assets with global investment partners.