European office market on offer
Global property funds manager Rubicon Asset Management has launched the Rubicon Europe Trust Group (RET), providing the Australian listed market with its first exposure to office space in Europe.
Rubicon, which also offers the Australian-listed property trust Rubicon America Trust (RAT), is seeking to raise $258.7 million through an initial public offering (IPO) for the initial RET portfolio.
The RET will use the proceeds of the IPO to acquire a 95 per cent interest in an initial portfolio of three office properties for $556 million.
The vendor, DB Real Estate Investment, will retain a 5 per cent interest in the portfolio, which was acquired at an initial yield of 6.5 per cent in an off-market deal at a 2.9 per cent discount to valuation.
The RET has been launched to “provide investors with an opportunity to acquire stable income-producing commercial real estate in Europe”, according to Rubicon managing director Gordon Fell.
“We believe it’s now an opportune time to invest in European real estate, with the cost of long-term debt finance considerably lower than property yields and the Australian dollar near all time highs against the Euro.
“We have now established a European platform on which we can build.”
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