This article is from the Australian Property Journal archive
Proving that not everything is for sale, Melbourne?s privately owned MAB Corporation has turned down yet another offer to sell the company.
Yesterday, sources informed Australian Property Journal that MAB Corporation’s owners Andrew and Michael Buxton had been approached to sell off their funds management business.
It is believed to be the second time in six months the Buxton brothers have been approached to sell the entire company or divide and sell parts of the company.
In November last year, the Buxton brothers turned down offers to sell off the company, which is estimated to be worth $400 million after holding discussions with interested parties.
Yet late yesterday MAB’s managing director Andrew Buxton told Australian Property Journal that the company has been approached to sell its funds management business.
“We have no plans to sell the business,” the tight lipped Buxton said.
Add to that, Buxton hinted that he is unlikely to be enticed by any offer – even if the right price was offered.
Buxton said last year the group had responded to parties, but ultimately decided it was not in the best interest to sell the company or split it up.
“MAB and its businesses are not for sale, in fact we have plans to grow our funds management division,” he added.
Launched in November 2001, MAB FM business is worth approximately $12 million and has an estimated $250 million worth FUM in the MAB Bourke Street Trust; MAB Diversified Property Trust; MAB Development Fund 1 and the recently launched MAB International Retail Trust.
Sources said the timing would have been right for MAB, adding that in the current market condition the sale would have fetched a high price and would have generated additional capital into the company for further expansion.
MAB’s interests are diversified across residential, industrial and office projects, including the $1 billion New Quay precinct at the Docklands and the $1.1 billion University Hill project in Bundoora. MAB recently launched Aquavista Tower, its first office development in the New Quay precinct.
In the past 12 months, there have been a number of privately owned firms who have sold their interests or portfolio to publicly listed entities.
In November last year, Mirvac bought a portfolio of assets from Lang Walker’s Walker Corporation for $1.12 billion.
Last year also saw FKP Property Group make a successful $284 million takeover of Wilbow Corporation.
Australian Property Journal
