Troubled US property fund in talks over restructure

20 August 2019

The troubled US Masters Residential Property Fund, run by Evans Dixon, has confirmed it has met with US distressed debt company Oaktree Capital and Australian property investor 360 Capital with regards to a possible restructuring of the fund.

In a stock exchange response to speculation in the Australian Financial Review this week the fund confirmed it had been meeting with the two parties. Oaktree Capital was founded in 1995 by US investor Howard Marks while 360 Capital was an Australian real estate fund and investment group.

According to the AFR, the possible restructure would aim to stabilise the listed fund and see it refinanced.

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Shares in URF, which invested in New York residential property, fell by 42 per cent over the last 12 months.

These discussions had been ‘preliminary’ and the firm said it would release more information in its annual results later this month.

“To date, discussions with Oaktree and 360 Capital have been preliminary in nature and included discussing an indicative, non-binding and confidential proposals that did not contain any financial terms or conditions or any substantive details.”

These discussions were in addition to its previously-announced asset sale program which included disposal of single assets, disposals of sub-portfolios of assets where there are institutional purchasers and corporate transactions or other capital initiatives.

“URF has been undertaking a process to consider strategic alternatives aimed at maximising value for investors and reducing the discount at which the fund’s ordinary units trade relative to net asset value per unit.”

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