Australian property fund under pressure to place value on unlisted assets
Australian banks are putting increasing pressure on property groups to ascertain the value of unlisted properties held within investment portfolios.
Brookfield Multiplex Capital Management (Brookfield Multiplex CM) is one example of a property manager (as responsible entity for the Multiplex Acumen Property Fund) working with its bankers to pay down debt and retain value for investors in a difficult market.
The Multiplex Acumen Property Fund has 27 underlying unlisted investments as well as a listed real estate investment trust portfolio.
The group, with its lender, is undertaking a review of the fund, which has already seen it examine the financial and operational status of the fund’s 27 unlisted investments.
But the attention of the manager’s financier is now on the value of the properties. As a result, Brookfield Multiplex CM has appointed an independent third party to review the value of the fund’s unlisted investments.
This move comes in an environment of considerable questioning over the true value of unlisted property investments, an asset class many superannuation funds are highly exposed to.
The managers of the Multiplex Acumen Property Fund are embarking on asset sales in both the fund’s listed and unlisted investments to reduce the fund’s debt levels, as well as undertaking other capital management initiatives.
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
Active fund managers without a strong distribution platform will be “left behind”, believes Magellan, as it pivots its business away from being a traditional asset manager.
