GPT will take over the management of its joint venture vehicle with Babcock & Brown, following the collapse of the investment bank.
GPT said its European funds management business, GPT Halverton, will asset manage the JV’s European properties whilst Greg Greenfield & Associates will continue as the asset manager of the JV’s US retail portfolio.
GPT’s CEO Michael Cameron said this is an important interim step for GPT.
“We are seeking to accelerate our exit from the JV, to refocus on our high quality, domestic, retail, office and industrial asset base. No further capital will be committed to the JV,” he added.
No management termination fee is payable by GPT to Babcock & Brown.
Meanwhile GPT has sold its interest in the H20 portfolio to Rynda Capital Partners Europe LLP, an independent European real estate investment management business.
EuroHypo AG, a leading European real estate bank, has agreed to refinance the portfolio as part of the arrangements for the acquisition.
The H20 portfolio comprises 32 office properties located in Germany, the Netherlands, France, Denmark and Finland and had a carrying value of $260 million as at December 31 2008. The portfolio has effectively been sold for the carrying value of the debt secured against the portfolio ($231 million as at 31 December 2008). The sale, therefore, represents an effective 11% discount to the carrying value of the portfolio as at December 2008.
Upon completion of the sale and the $1.7 billion capital raising, GPT’s pro forma net debt and balance sheet gearing will reduce to $2.3 billion and 20% respectively.
Australian Property Journal
