LINKS Living has invited selected parties to bid for its entire portfolio, a decision which has not worried Babcock & Brown Residential Land Partners.
BLP holds investments in two of Links Living’s four residential projects, including a 50% interest in the Sandhurst Club and a 26.7% in
These investments represent approximately 13% of BLP’s gross asset value.
BLP’s managing director Michael Balkin believes that the level of investor demand has led Links Living inviting bids for its portfolio.
“We have been in close consultation with Links in relation to its potential portfolio sale. While BLP is not in the business of divestures of this nature, we are not sentimental about our projects,” he added.
Balkin said when superior returns can be realised – the proceeds will be re-invested and given the group’s strong pipeline of acquisition opportunities under review, he is confident that the capital can be re-deployed within a short time frame.
However, Balkin said the group has the right to refuse any sale that does not offer an improved rate of return on its investment and is therefore not in the best interests of its securityholders.
“Should the sale of Links Living’s residential portfolio eventuate, Links Living’s 8.7 million security holding in BLP will remain escrowed until June 30 2008 as originally agreed,” he concluded.
Australian Property Journal
