Japan focus for new Challenger LPT
Challenger Financial Services is to launch a new listed property trust in partnership with Japan-based real estate manager Kenedix, which will invest in retail property in Japan.
A product disclosure document for the Challenger Kenedix Japan Trust (CKT) has today been lodged with the Australian Securities and Investments Commission.
Challenger is seeking to raise approximately $300 million through the issue of 150 million units in CKT, which it is intending to list on the ASX.
The proceeds of the unit offer, together with Japanese Yen debt, will be used to invest in an initial portfolio of 12 Japanese urban and suburban retail properties for a total purchase price of $445 million. Challenger itself will subscribe for 5 per cent (about 7.5 million) of the available units.
Properties in CKT will be both sourced and managed by Kenedix, which has current assets under management of $5.9 billion, on behalf of Challenger.
Chief executive Mike Tilley said the launch of CKT was consistent with Challenger’s strategy “to establish and co-invest in both listed and wholesale investment vehicles across property, infrastructure and alternative asset classes”.
“The relationship with Kenedix provides CKT with an aligned management structure as well as access to a strong pipeline from which to source future opportunities,” he said.
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