This article is from the Australian Property Journal archive
THE Real Estate Capital Partners USA Property Trust and Saban Capital Group’s have finally bought Record Realty’s $US500 million US portfolio.
Saban Capital Group is a private investment firm based in Los Angeles which has historically specialised in the media, entertainment and communications industries.
The trust has invested $US12.2 million in the RRT transaction, representing 14.5% of the total investment cost and Saban Capital Group’s fund, the SGSA I, has funded the majority of the transaction.
Under the deal, the trust has an obligation to increase its invest to 35% of the portfolio and may increase its interest up to 48% with the agreement of SGSA I.
The RRT portfolio comprises 21 office assets, 98% leased to the US Government with a weighted average lease expiry of 6.7 years and a gross value of approximately $US500 million.
This investment has been split into two pools, the first comprising 12 properties with gross assets of $US272 million, debt of $US153 million and an average debt term of 6 years, at an investment cost is $US82 million.
The second comprises 9 properties valued at $US240 million and debt of $US284 million due in May 2012. The investment cost of Pool B is $US1 as it is considered an option on a recovery in value of the properties.
Australian Property Journal
