This article is from the Australian Property Journal archive
APN/UKA European Retail Trust has continued to grow its portfolio and now has $1.2 billion invested across seven cities.
The growth has helped the book a net profit after tax of $25.3 million for the half year ending December 31, 2006.
The result include a gain of €3.4 million ($A5.7 million) from a ‘profit participating loan’ arising out of the acquisition in January 2007 of the recently developed Cuadernillos shopping centre in Madrid, Spain, which was acquired for €93.65 million ($A155.3 million).
The proceeds will be retained to fund refurbishment and reduce debt where appropriate.
APN Funds Management’s managing director Clive Appleton said the trust was on target to meet its distribution forecast of 10.18 cents per unit, for the 2007 financial year.
He said this would result in DPU growth in excess of 13% compared to the annualised equivalent distribution last year.
During the half year, the trust acquired interests in a further three shopping centres located in Austria, Poland and Romania.
The Trust now has $1.2 billion invested in 35 retail assets, located in Spain, Germany, Greece, Romania, Poland, Austria and Italy.
APN FM has strengthened its management team in Europe, with the appointment of key management personnel.
Appleton said the team under the direction of APN Chairman Chris Aylward were establishing an infrastructure that will enable AEZ to move to an in house property management and development platform.
This will provide additional income streams for AEZ from both property management and non retail revenue streams such as commercial opportunities within the portfolio.
The platform is expected to take 12 months to establish.
“The trust will also pursue an active development programme within its existing portfolio with an initial emphasis on refurbishment and tenant reconfigurations.
“Europe remains an attractive retail investment market. In those countries where AEZ has invested, real GDP is rising and unemployment is declining. Europe continues to offer scope for additional retail investment and development because the supply of retail space is well below that of Australia and the US on a per capita basis,” he concluded.
Australian Property Journal
