Multiplex launches European LPT
The Multiplex property funds management division has launched a European listed property trust, with an initial focus on German property but an expectation of a wider European mandate over time.
Underwritten by NAB and Commsec, with an offer of $184.5 million, the Multiplex European Property Fund will officially list on the Australian Stock Exchange on June 27, 2007. The initial portfolio comprises 67 German properties, purchased for $599 million, covering a diverse spread of German property types including retail, logistics (industrial), office and nursing home assets.
The Multiplex Group holds a 25 per cent interest in the fund, which is forecast to distribute 8.5 per cent to June 30, 2008, increasing to 8.7 per cent for the corresponding period in 2008.
Ian O’Toole, managing director of Multiplex Capital, expects the fund to quickly expand into other European countries and to increase its allocation of retail and industrial assets.
“We believe this is a good starting basis, but would like to see more retail and logistics properties over time.”
He also commented on the 25 per cent stake Multiplex has taken in the fund: “We like to be a cornerstone investor in each of our funds É. particularly in retail investments, it demonstrates our alignment of interest [with investors].”
O’Toole described the new fund as an extension of the Multiplex Property Securities Fund, which also comprises a large proportion of global property assets.
“The European market is so much larger É whatever [assets] we get we are just scratching the surface.”
According to O’Toole, Multiplex particularly admires the diversity and investment approach adopted by Macquarie Bank and Babcock Brown and follows a similar model.
The European Property Fund will be distributed to retail investors by NAB, Commsec, MLC and Godfrey Pembroke, among others.
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