This article is from the Australian Property Journal archive
The GPT Group and Babcock & Brown have jointly bought a 50% stake in Halverton Real Estate Investment for €15 million ($A25 million).
The JV has also bought a 1% equity interest separately held by Halverton in the JV’s portfolio of light industrial assets for €2.2 million ($A3.7 million).
Halverton is a specialist aggregator and manager of Pan European light industrial and other multi let assets, headquartered in London. The company employs an team of 65 people, located in six offices in Northern Europe, including Amsterdam, Paris, Berlin, Frankfurt and Copenhagen.
Babcock & Brown’s global head of real estate Eric Lucas said the acquisition not only secures a scaleable asset management platform for the JV’s light industrial portfolio, but also provides the JV an opportunity to co-invest alongside Halverton in future portfolio initiatives.
“The platform should also deliver a diversified income stream including acquisition fees, asset management fees and performance based fees, and is consistent with the JV’s strategy to evolve and expand its business through investment in operating businesses and the establishment of managed funds.
“Halverton will also continue to source acquisitions to grow the JV’s light industrial portfolio, as well as source third party funds and asset management opportunities,” he added.
The JV has partnered with Halverton since June 2005 in the aggregation of a light industrial portfolio, which now includes more than 85 properties located in Germany, The Netherlands, France and Denmark, with a book value of €700 billion ($A1.2 billion).
Halverton currently has €860 million ($A1.4 billion) of assets under management, including the JV’s assets.
GPT’s general manager of the JV Neil Tobin said the JV has an excellent relationship with the Halverton team.
“And have every faith in their ability to grow this business in what is a buoyant capital markets environment.
“Halverton’s business model, people, and track record provide a strong base on which to deliver value to investors,” he added.
While the JV is currently Halverton’s largest client, the company also manages light industrial assets for Citigroup Property Investors and Cortona Holdings (a Dutch property company) and has recently launched a German Office Partnership in conjunction with Jones Lang LaSalle Corporate Finance Ltd.
Halverton’s AUM is forecast to grow strongly due to significant demand from capital sources in Europe.
By Kathryn O’Meara
