This article is from the Australian Property Journal archive
Cashed up Australian Listed Property Trusts have settled down for the time being and taking a breather, according to the latest Australian Stock Exchange LMI Update.
According to the ASX March 2006 LMI, while LPTs are still the favoured investment vehicle among investors, the share prices of listings haven not taken off and there are no major capital raisings insight.
The last major listings were in December 2005 with the $258 million Rubicon Europe Trust Group, the $171 million Reckson New York in September 2005.
The Rubicon Europe Trust listed at $1 and has hovered around its issue price, while the Reckson New York trust listed at 65 cents in September and has risen to 75 cents.
Property Investment Research’s head of listed securities Paul Pavlidis said funds managers are taking breather.
“They are enjoying a stable income stream at the moment and some LPTs are reaching 8% yields from their property investments overseas.
“The LPTs sector is steadily growing in size and the trusts are consolidating their purchases to boost rental income,” he added.
As at March 31, 2006, the market capitalisation of LPTs was $104.8 billion an increase of 22.6% when compared to $85.4 million a year ago.
In the upcoming months, the spotlight will be on small capital raisings LPTs with the $31 million ING Real Estate Healthcare Fund and $23 million Cheviot Kirribilly Vineyard Property Group.
The ING Real Estate Healthcare Fund will invest in properties used to provide healthcare services. The fund will receive rental income from leases to healthcare operators and will not participate in the operation or management of any healthcare business.
While the ASX March 2006 LMI Update show there are no major upcoming listings, Australian Property Journal has learnt that insurance group Allianz is planning to raise $350 million by spinning off its German property portfolio and floating it on the ASX.
Merrill Lynch is expected to handle the initial public offering for the portfolio of German retail and office properties worth around $750 million, which includes existing debt.
By Nelson Yap
