This article is from the Australian Property Journal archive
MIRVAC has cleared the decks of noncore assets, by selling the Mirvac PFA Diversified Property Trust to Australian Property Growth Fund.
Mirvac PFA currently has assets worth $561.2 million.
The sale will end the rocky times for Mirvac has had with the trust. Mirvac PFA was controversially delisted from the Bendigo Stock Exchange on July 2009 despite a last minute ditch by large investors namely Seymour Group and Wellington Capital, against the plan.
Mirvac’s CEO Nick Collishaw believes the transaction will benefit Mirvac PFA investors, due to APGF’s capabilities and experience in funds management and Australian real estate.
“I am pleased that Brisbane-based APGF are assuming responsibility for running the trust. APGF are known to many existing investors and will be well positioned to manage the trust going forward.” He concluded.
Mirvac bought the trust, Property Funds Australia in October 2007 from its founder Chris Morton, and at the time it had $700 million of assets under management.
However, in recent times the trust has had to dispose of assets because of its high debt levels. As at December, the trust had a gearing ratio of 56.4% and total interest bearing debt of $323.9 million whilst asset values were $561.2 million.
The trust also shelved a one-off discounted capital raising towards the end of 2009 because the amount trust’s lenders required to be raised before allowing redemptions and the discount the market would have further diluted the trust’s value.
Australian Property Journal
