Babcock communities appoints ABN AMRO

TAKEOVER target Babcock & Brown Communities has appointed ABN AMRO as independent corporate advisors to conduct the strategic review of the company.

BBC’s independent chairman Judith Sloan said the review will determine options to reduce the gap between the underlying asset values and BBC’s current market trading prices with the goal of maximising securityholder value over time.

“The Board remains of the view that BBC’s market trading price represents a significant discount to the value of BBC’s underlying assets.

“BBC has a portfolio of high quality retirement villages and aged care facilities across Australia and in New Zealand. There are few investment opportunities that offer the same direct access to this market with strong growth prospects underpinned by ageing demographics,” Sloan added.

Last week, Lend Lease bought 40.28 million shares in BBC at 44.98 cents a share. The group’s investment $18.11 million investment will give it a 6.18% stake in BBC.

Sloan said BBC expects to be able to update the market on its response to ABN AMRO’s recommendations in conjunction with the announcement of BBC’s Full Year results in late August 2008.

Meanwhile, the company has announced a distribution reinvestment plan for the distribution for the six months ending June 30 2008.

BBC shares closed half a cent lower at 43 cents.

Australian Property Journal