Macquarie DDR flags possible sell off
A key Macquarie offshoot has moved to improve its position in the market with the likely sell-down of assets and the possible sale of all units.
The Macquarie DDR Trust Management Limited announced the strategic review and said it had been prompted by the belief that the current global economic downturn and the continued deterioration in US markets meant the market “has not recognised MDT’s underlying asset value”.
It said this had resulted in Macquarie DDR trading at a substantial discount to its asset value.
“The strategic review will explore all options seeking to maximise the value of unit-holders’ investments in MDT, including the merit of asset sales as well as entity-level sales and to potentially solicit proposals to acquire 100 per cent of MDT’s units,” the announcement said.
It said that in order to preserve operating capital while the strategic review was undertaken, the manager considered it appropriate not to announce a December 2008 distribution and had determined that the next distribution period would end on June 30, 2009.
AUTHOR
Mike Taylor
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