Van Eyk Three Pillars buys up ING pub fund
Van Eyk Research's Three Pillars Portfolio Managers is underwriting a $36.4 million rights issue in the ING Real Estate Entertainment Fund (IEF).
IEF shareholders are being asked to take part in a two-for-one pro-rata renounceable rights issue as part of a range of initiatives being undertaken by the fund to reduce debt levels. The offer entitles shareholders to subscribe for two new units for every unit held at 7pm tonight.
Two of IEF's institutional unit holders, Orbis Investment Management and Renaissance Property Securities, have committed to participate in the offer, with Orbis and Renaissance subscribing for $6 million and $2.8 million in units respectively.
The remaining units will be fully underwritten by Three Pillars Portfolio Managers as investment manager of the Borg Fund, Lothian Partners Hotel Group and Logic Fund Management.
Borg is a special purpose fund wholly owned by van Eyk Blueprint Series, specifically created to hold investments in IEF. Aurora Funds Management is its trustee and Three Pillars Portfolio Management is its investment manager.
Lothian is a wholly owned subsidiary of Lothian Partners Australia, which in turn is a wholly owned subsidiary of Lothian Partners New Zealand.
Logic is a New Zealand investment company that is marketed as an "independent private wealth management" company servicing trusts, businesses and individuals.
Borg and Lothian were also the recipients of a $2.4 million placement that took place on 15 July.
If no unit holders other than Orbis and Renaissance take up their entitlement, post offer Borg, Lothian and Logic would between them hold just under 55 per cent of voting power in the fund, with Borg and Lothian holding 19.99 per cent each and Logic 14.9 per cent.
The IEF owns a number of hotels in New South Wales including the Bourbon Hotel and Club Swans in Kings Cross, the 3 Weeds in Balmain, the Dolphin in Surry Hills, Woolwich Pier in Woolwich, the Commodore in North Sydney and the Empire Hotel in Annandale. The fund also owns hotels in Queensland and Western Australia, but is selling its New Zealand portfolio as part of its debt reduction scheme.
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