This article is from the Australian Property Journal archive
Babcock & Brown Land Partners has launched a $175 million capital raising to buy $203 million worth of residential land projects around Australia.
Under the Offer Document 175 million new stapled securities in BBRLP are being offered. It is not a general public offer.
Chief executive of BBRLP, Michael Balkin said Babcock & Brown’s experience and track record in the property market and the origination and structuring of transactions combined with the proven capabilities of the development partners we have assembled should ensure that the original portfolio of properties is maximised and the fund continues to grow and develop.
Each stapled security issued by BBRLP will comprise one ordinary share in Babcock & Brown Residential Land Partners Limited and one unit in Babcock & Brown Residential Land Partners Trust. These entities together comprise BBRLP.
The offer is expected to open on June 13.
The initial portfolio will comprise investments in 10 residential land projects located across Queensland, New South Wales and Victoria at various stages of the development process totalling 4,241 lots.
All residential land projects within the initial portfolio are either located in government defined growth corridors, are infill sites or are located in areas possessing potential for long -term growth.
The initial investments of BBRLP will not be by way of direct investment in the land projects.
Rather, they have been structured as a series of contracts including a secured loan. The investment returns of BBRLP will nevertheless be dependent entirely on the performance of the underlying residential land projects.
Chairman of BBRLP Michael Maxwell Chairman added that the group’s focused investment opportunities have generally not been widely accessible to the public.
“BBRLP offers security holders an innovative way of accessing this segment with geographic, project and product diversity, liquidity, access to quality private developers, long term potential for growth and importantly, the benefit of access to Babcock & Brown’s considerable investment and structuring experience in the real estate sector.”
By Kathryn O’Meara
