This article is from the Australian Property Journal archive
Multiplex Capital has closed the capital raising for Multiplex Acumen Prime Property Fund oversubscribed buoyed by strong demand from retail investors.
The fund had sought to raise equity of $169.1 million with Multiplex Property Trust holding 30% of the issued equity. Given the level of oversubscriptions received, MPT has agreed to reduce its holding to circa 24%.
The latest successful capital raising will no doubt boost Multiplex’s confidence to grow its external funds management business. Earlier this week, Multiplex told Australian Property Journal the group is working on a series of opportunities which could lead to the launch of a $800 million European fund.
Meanwhile, MAFCA will have an initial investment portfolio valued at $640 million.
The fund will have investments in four office buildings include 100% in the new American Express building at Sydney’s King Street Wharf, currently under development by Multiplex Developments and due for completion in December 2007 (acquisition price $123.5 million); 50% of Ernst & Young Centre and 50 Goulburn Street, World Square, Sydney (acquisition price $256.25 million); 25% of Southern Cross Tower, Melbourne (acquisition price $130 million); 100% of Defence Plaza, Melbourne (acquisition price $67 million) and portfolio of listed property trust securities valued at $63 million.
The portfolio will derive 77% of its property income from Government and major commercial tenants with 80% of property income supported by fixed rent reviews of between 3.50% and 4.75% per annum. The Weighted Average Lease Expiry of the portfolio is circa 10 years.
Multiplex Capital’s managing director Ian O’Toole said this is one of the largest property sector retail offerings in the Australian equities market since 2003.
“The keen investor appetite reflects the established track record of Multiplex Capital in developing and managing quality property product and follows the success of Multiplex Acumen Vale Syndicate and Multiplex New Zealand Property Fund. Our successful equity raising for the Multiplex Acumen Prime Property Fund is another significant milestone toward our strategy to establish a constellation of managed property funds,” he added.
National Australia Bank acted as lead equity arranger. Joint lead managers to the offer were NAB and ANZ Investment Bank.
The fund is set to list on the Australian Stock Exchange on September 15 2006.
By Nelson Yap
