LISTED property companies managed by Babcock & Brown could be wound up as the investment bank changes its focus towards infrastructure investments.
Babcock & Brown Japan Property Trust yesterday told investors that BNB is preparing real estate assets for divestment.
BJT said the real estate funds management business will be managed by existing teams of employees at BNB but the focus will be on selling the assets when opportunities arise.
BJT listed in April 2005 and currently holds interests in a portfolio comprising 44 retail, office and residential properties located in
BJT said it is fully committed to using its best efforts to ensure that these steps announced by BNB do not negatively impact BJT unitholders.
“The board notes BNB’s commitments to the management of third party capital stated in the release and has no reason to believe that the steps announced by BNB in themselves should pose any disadvantage to BJT unitholders.
“However the board is reviewing all options available to it and will remain fully engaged in dialogue with BNB management on behalf of BJT unitholders,” the trust said.
Another listed entity, Babcock & Brown Residential Land Partners has gone into an immediate trading halt.
BLP is currently in discussions with both BNB regarding its ongoing relationship and its financiers. The group expects to make an announcement regarding its position next week on Monday November 24.
Meanwhile Babcock & Brown Communities Group has not been affected by the restructure at BNB. BBC earlier this week broke free from the investment bank and has since teamed up Lend Lease.
Australian Property Journal
