This article is from the Australian Property Journal archive
VALAD Property Group has sold 40% of Gold Fields House to a newly created fund and at the same time has formed a partnership with Dutch pension fund, Stichting Pensioenfonds ABP.
As part of the agreement, Stichting Pensioenfonds ABP will partner Valad in the $1 billion redevelopment of Gold Fields House. ABP is the Dutch government and education sector pension fund with assets under management of €208.9 billion ($A343.3 billion).
The 40% stake in Gold Fields House is now held in the Gold Fields club fund.
Meanwhile, the group said the progressive sale of its joint venture interest in the Kennards Self Storage portfolio to the Kennard family; and the sale of interests in Digital Campus, Sheffield and 38 Threadneedle Street, London are in line with business plan.
Valad’s second half profits hinges on the settlement of these transactions which will deliver $420 million in proceeds.
Valad is also selling its interests in the Sheraton Noosa Resort complex, which was not part of the updated announcement released yesterday.
Last month, the group cut its distribution forecast for the year to June 30 2008, expected to be 11 cents per security – which is inline FY07, but 11% below the company’s upbeat forecast of 12.5 cents announced on March 20.
Along with the distribution cut, Valad’s $2.3 billion portfolio is expected to writedown $65 to $85 million in value.
Valad shares fell 5 cents lower at 62 cents.
Australian Property Journal
