RPT-Investa to buy back A$775 mln, US$225 mln bonds

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SYDNEY, Sept 21 (Reuters) - Australia's Investa Properties
Group said on Friday it would buy back all its outstanding
bonds, comprising A$775 million ($668 million) of domestic
notes and US$225 million of private bonds.

The buyback is part of the financing arrangements following
the A$4.7 billion takeover of Investa by U.S. investment bank
Morgan Stanley's (MS.N) real estate unit in August.

The issuer will buy back the A$ bonds at the price of 101
plus accrued interest.

The deadline for Australian investors is Oct. 5.

An Australian fund manager said he is satisfied with the
buyback price of 101, which is at a premium to where Investa
bonds are trading.

The tender involves six fixed and floating rate (FRN)
tranches:

1) Series 1 A$235 million fixed rate due Sept 24, 2009

2) Series 2 A$40 million FRN rate due Sept 24, 2009

3) Series 3 A$180 million fixed rate due Aug. 23, 2012

4) Series 4 A$70 million FRN rate due Aug. 23, 2012

5) Series 5 A$125 million FRN due June 15, 2011

6) Series 6 A$125 million fixed rate due June 15, 2011.

Investa said it is also buying back, with the help of
Merrill Lynch, US$225 million worth of notes using the offer's
prepayment clauses. The bonds were sold in 2004 in the U.S.
traditional private placement market.

Investa is a diversified property company with A$7 billion
in assets under management, including Australian commercial
office portfolio of A$4 billion. It is rated BBB+ by S&P.
($1=A$1.16)