Published: 17 January 2005
The Sydney-based Babcock & Brown Group announced â‚¬633 million of European real estate transactions today.
The group’s head of global real estate, Michael Maxwell, said the â‚¬483 million of purchases accelerated its strategy of quality buying income-producing assets in Europe & the UK at yields which support high levels of non-recourse borrowings. The group has also sold â‚¬150 million of more mature assets.
Babcock & Brown has agreed to buy the new 46,500mÂ² Galerie Butovice retail & office development in Prague, for â‚¬103 million, conditional on completion by May. Dutch retailer Royal Ahold has a 15-year tenancy agreement and will also move its Central European headquarters there. Tenants have already committed to more than 90% of the property.
In German, Babcock & Brown has committed to buy 2 residential property portfolios for â‚¬380 million. The first contains 2700 apartments in western Germany & the other contains 13,500 apartments in Salzgitter, a northern German city 100km from Hamburg.
Babcock & Brown has agreed the sale of 3-quarters of its Kiel apartment portfolio for â‚¬150 million in 2 deals, 1000 units bought by a German fund in December and sale of 3600 apartments to a Scandinavian funds origination company, which went unconditional on 15 January.
Mr Maxwell said the Czech Republic & German purchases all used attractive levels of limited recourse debt finance, giving the dual benefits of enhanced running yields & strong overall internal rates of return.
Website: Babcock & Brown