This article is from the Australian Property Journal archive
AFTER breaking up with Trinity in February this year, CVC Limited has teamed up with 360 Capital Group to jointly manage the CVC Trinity Property Fund.
Subject to unitholder approval, 360 Capital will take a 50% interest in CVC Trinity Property Managers Limited, the Responsible Entity of CVC Trinity Property Fund.
If the deal is approved, the Responsible Entity is to be renamed CVC 360 Capital Funds Management Limited and the fund will be renamed CVC 360 Capital Property Fund.
CVC Trinity Property Managers Limited’s chairman Geoffrey Leaver said the company has been working closely with 360 Capital Group over the past three months to formulate the strategy for the fund going forward.
360 Capital Group’s managing director Tony Pitt who will become managing director of CVC 360 Capital Funds Management Limited, said the Australian listed property trust sector now comprises too many structured vehicles with complexities not representative of property investment.
“CJT aims to provide investors with a fund which is transparent and based on the underlying property investment fundamentals,” he added.
“Given the current investment environment, it is proposed to refocus the strategy of the fund away from being an investor in higher-risk and return investments to an investment strategy of investing across three forms of property investments, namely: direct property assets; strategic property securities investments; and strategic unlisted property trust investments.
“Going forward the fund will seek to provide investors with an asset base of Australian listed, Australian direct and Australian unlisted assets as well as cash in one transparent product,” Pitt continued.
With this near term strategy in mind, Leaver said the fund has elected to sell both direct property assets comprising the Ricoh Building at 8 Rodborough Road, Frenchs Forest and a lifestyle development site at Belrose, New South Wales.
Proceeds from the disposals will initially be used to repay all of the funds borrowings and purchase shares in ASX listed property securities.
CJT shares traded 0.003 cents higher last Friday to close at 6 cents.
Australian Property Journal
