Principal Real Estate Investors is expected to sell down its $425 million Principal Hotel Group property portfolio to Macquarie Bank within the next month.
Macquarie Bank will utilise the assets of the PHG property portfolio to create a new mega hotel trust to be publicly launched early next year.
“The new entity will clearly differentiate from any existing hotel vehicle. A transaction is expected to be announced in early 2004,” managing director of Principal Hotel Group, Antony Karp told propertyreview.com.au late yesterday.
Principal Global Investors is a funds management organisation with over $US100 billion in assets, specialising in real estate, fixed income and equity investments. The US real estate business of Principal Global Investors is the fourth largest real estate business in the United States and has over $US24 billion in assets under management including the ASX listed Principal America Office Trust
Macquarie and its associates manage more than A$50 billion in listed and unlisted assets including Macquarie Infrastructure Group, Macquarie Airports, Macquarie CountryWide Trust, Macquarie Office Trust and Macquarie ProLogis Trust.
