Babcock continues EU asset recycling

BACOCK & Brown has concluded the sale of several United Kingdom and European assets.

Yesterday, the investment bank said it has completed the sale of an office tower in Rochdale, UK to the building’s anchor tenant for a consideration significantly in excess of book value. This property was included in the balance of investment property at December 31 2007 and will reduce the balance by approximately $58 million.

And since December 31, Babcock & Brown has completed the sale of $398 million of European retail assets.

Head of global real estate Eric Lucas said these sales were also significantly in excess of book value and in line with targeted returns.

“The profits from these sales will be reflected in the 2008 results.

“These sales are part of our normal capital recycling program and the results reflect the embedded value across our real estate portfolio.

“We continue to sell assets and recycle capital steadily in the ordinary course of our business and particularly look forward to taking advantage of opportunities in the global real estate market during the course of 2008 and into 2009 as an increasing number of poorly capitalised players exit their holdings,” he concluded.

Australian Property Journal