This article is from the Australian Property Journal archive
BECTON Property Group is in the final stages of developing a new path forward following a year of restructuring and resolving capital challenges, according to CEO Matthew Chun.
Chun said the operating fundamentals remained strong in the June quarter.
The development and construction business delivered strong pre-sales with Becton settling $176.9 million worth of sales and exchanging $140.7 million in new contracts, whilst a further $51.1 million is under offer. The group had $21.6 million of apartments completed for sale.
In addition, the Becton Development Fund No.1 has achieved $179.5 million in settlements during FY2010, which has enabled the fund to completely repay all of its financiers and to date pay distributions totalling $0.67 per unit to unitholders.
Becton’s retirement living recorded 199 sales for the year ($50.2 million in new sales and $54.17 million in resales) — this compares to 121 sales (new sales and re-sales totalling $57.6 million) for the prior corresponding period. These first time sales increase the number of Becton’s dwellings under management to 991.
And in the funds management portfolio, there were approximately $231 million in settled assets — sold in aggregate at a 2.7% discount to book value, with the majority of sale proceeds applied to debt reduction.
Becton executed 162 leases for more than 135,182 sqm of space maintaining the portfolio occupancy levels at 96.9%.
And the Becton Retail Fund, Becton Southlands Boulevarde Property Trust and Becton Office Fund extended facilities of approximately $69 million, $21.75 million and $16 million respectively with Westpac Banking Corporation.
During the June quarter, Becton successfully refinanced approximately $79 million of group debt and $114 million across its managed funds platform. Becton’s total debt position has reduced by approximately $68 million within the group and approximately $307 million across the managed funds.
Chun said capital restructuring initiatives have been a priority for both the group and the funds management business throughout the 2010 financial year.
“In December 2009, investors in a number of Becton’s managed funds approved changes to the constitutions of those funds to provide Becton with greater flexibility in pursuing options for the potential recapitalisation of the group and its funds.
“Since that time, Becton has identified and developed a number of options, while at the same time continuing to sell assets and pay down debt. It is now in the final stages of developing a recommended path forward and expects to put a clear solution to investors by the end of August,” he concluded.
Becton is in the process of finalising its June 30 2010 full year results and expects to release these on Friday, August 26 2010.
Australian Property Journal
