This article is from the Australian Property Journal archive
Rubicon Europe Trust Group has poached one of the heads at DB RREEF in Europe to look into launching a European office wholesale platform following the group’s successfully entry into the market last year.
RET which listed in December 2005, delivered a profit of $34.5 million for the six months ended June 30, 2006, representing an increase of $24.9 million or 260% compared with the PDS forecast.
The group’s total income for the year adjusted under AIFRS was $75 million. The major component of this increase was the revaluation of the initial portfolio of German assets.
Rubicon’s managing director Gordon Fell said to assist group its developing its European platform, RET has appointed Mark Rattigan as executive director of Rubicon Europe.
Rattigan has extensive experience in real estate asset management, investment banking and development in Europe and Australia and most recently was the chief operating officer of DB RREEF in Europe.
“We are delighted that Mark has decided to join Rubicon. He brings to the firm considerable European real estate expertise, from which REU will undoubtedly benefit,”
Meanwhile, Dr Fell said the group has delivered on its forecast distributions and exceeded forecast earnings for the half year.
“This is attributable to the high quality of our tenants and leases and our comprehensive long term hedging arrangements over interest rates and foreign exchange, as well as the recovery that is now well under way in European real estate markets.
“We have now demonstrated an ability to originate high quality assets in three different countries, enhancing geographic and tenant diversification and increasing distributions. In so doing, we have established the leading property trust focused on the European office market,” he added.
Fell said the group’s primary focus for the next 12 months is to maximise returns for investors through effective execution of existing opportunities.
“The recent acquisitions of the Nike HQ and the Hermes Plaza development were debt funded, reflecting our determination not to raise equity at the current unit price levels, including through a DRP.
“In addition, we are actively investigating the sponsorship by REU of a wholesale funds management platform focused on European office assets which, if successful, would generate an additional revenue stream for REU,”
Fell said on completion of the Phase I Hermes Plaza acquisitions, REU will have five Class A office properties covering approximately 178,000 sqm in Germany, Belgium and the Netherlands and a further three development opportunities with in place approvals for approximately 34,000 sqm of Class A office space.
The group has confirmed the forecast cash distributions of 4.5 cents per unit for the six months ending December 31, 2006 and 9.5 cents per unit for the year ending December 31, 2007.
By Kathryn O’Meara
