BABCOCK & Brown is moving on and pursuing opportunities to syndicate German office properties following its separation with GPT in June this year.
Babcock & Brown has sold a 37 property portfolio comprising retail, office and mixed use assets throughout
The portfolio was made up both of commercial properties owned by the GPT joint venture and retail properties owned 100% on Babcock & Brown’s own balance sheet.
This sale, combined with the earlier sale of two other European retail portfolios, reduces Babcock & Brown’s balance sheet exposure to European retail property as at December 31 2006 by approximately 40%.
Instead, Babcock & Brown has bought a portfolio of six properties for €380 million ($A618 million).
Babcock & Brown’s chief executive Phil Green said the German office acquisition is a first step in the group’s strategy to accumulate a portfolio, through both acquisition and development, focused on the strengthening German office market.
“…which we will seek to syndicate over the course of the next six months. The nature of the portfolio allows us to add value through restructuring prior to syndication.
“The returns generated on the sale of the retail portfolios fully supports our decision not to proceed with the European Real Estate IPO last year. The German office acquisition and the sell down and syndication of our European retail portfolio reflects the ongoing recycling of our capital and rebalancing of our portfolio,” he added.
The properties represent approximately 160,000 sqm of office and retail space in
The portfolio includes the “Weißer Riese”, “Kustermannpark,” and “Pagodum” properties in
The transaction is to be funded through a facility approved by a major German financial institution, the transaction is expected to reach financial close in September 2007.
Meanwhile in the
Australian Property Journal
