This article is from the Australian Property Journal archive
MELBOURNE based Becton has refinanced 85% of debt maturing owed by three managed funds, just a week after the company secured a major backer from the Middle East.
The Becton Industrial Fund has renegotiated debt facilities with the National Australia Bank on a $250 million facility, maturing on December 31 2010, has been extended in two tranches with $125 million now due to expire on January 31 2011 with the remaining due on January 31 2012.
The Becton Office Fund No. 2 has refinanced $115 million of debt facilities with the Commonwealth Bank which has been extended to December 31 2009 from April 30 2009. The short-term debt extension allows fund investors to vote on a revised medium-term strategy at a meeting due to be held in or before August 2009.
Finally the Becton Development Fund No. 1 has refinanced a $13 million facility with St. George Bank which was due on March 31 and has been extended to September 30. The short term extension is intended to allow the fund to repay the debt facility in full at or prior to maturity from surplus proceeds following settlement of the fund’s 100% pre-sold projects at One East Melbourne and Treasury Residences (both projects due to begin settling in May / June 2009).
Becton’s chief executive Matthew Chun said the re-financings comprise more than 85% of the debt maturing within Becton’s managed funds prior to June 2009.
“This announcement heralds another significant step forward for Becton and underscores the strong relationships we have in place with our banks
“We continue to do everything we can to proactively manage our way through the cycle and position the business for the future,” he continued.
He added that the company’s is in advanced discussions to refinance a $22 million facility within the Becton Southlands Boulevarde Property Trust with Westpac; $55 million within the Becton Office Fund No. 1 with Westpac; $10 million within the Becton 226 Greenhill Property Trust with BankWest; and 4. $86 million within the Becton Retail Fund with Westpac.
Meanwhile the Becton Direct Diversified Property Fund has settled on the sale of Abbotsford Office Park for $31.25 million. The full proceeds of the sale have been used to retire debt which has reduced the fund’s LVR to 49.8%. The fund has also exchanged an unconditional contract for the sale of 159 Coronation Drive and 5 Cribb St, Milton QLD for $21.2 million. This sale is expected to settle in early June and will further reduce the fund’s LVR to approximately 42%.
And the Becton Industrial Fund has exchanged unconditional contracts for the sale of 4 industrial units at Fairborne Way, Keysborough for $7.8 million. Following the settlement of these properties the fund’s LVR will be reduced to 54.9%.
The Becton Office Fund exchanged contracts on 19-23 Prospect Street, Box Hill for $12.25 million. Settlement is expected in January 2010. The sale reflects a yield of 9.18%.
The Becton Office Fund No 2 has exchanged contracts on 91 Northborne Avenue, Canberra for $10.5 million on a yield of 8.8%. Settlement is expected in early May 2009. Proceeds from the sale will be used to reduce gearing to approx 50.4%.
Becton has now sold 13 properties within its managed funds this financial year. These sales have realised $209.2 million across six funds at an aggregated discount of 6.6% to book value.
Australian Property Journal
