Sydney, Nov 16, 2005 AEST (ABN Newswire) - Babcock & Brown Japan Property Trust (ASX: BJT) today announced the proposed acquisition of an interest in a diversified portfolio of 18 properties located in Japan for approximately Y38.6 billion or the equivalent of approximately AUD$450 million.
BJT also announced an equity raising of AUD$226 million, through a 10 for 18.835 nonrenounceable entitlement offer. Independent of the proposed offer and acquisitions, BJT also announced the increase of its forecast distribution per unit based on its existing portfolio for the 12 months to 30 June 2006, to 8.9 cents per unit, up from 8.7 cents forecast at the time of its initial public offering (IPO) in April this year.
The proposed acquisitions, which will bring BJT's portfolio to over AUD$1 billion, are forecast to further increase distributions above the revised forecast, to a 4.98 cent distribution for the first half of 2006, a further 8.7% increase from the revised forecast of 4.58 cents and an increase of 14.5% in total from the IPO forecast.
The proposed acquisitions will not result in any change to BJT's pro forma gearing ratio. Eric Lucas, Managing Director of Babcock & Brown Japan Property Management Limited ("BBJPM"), the Responsible Entity for BJT, said "We are delighted with the distribution upgrade based on the existing portfolio and excited about the proposed acquisitions and their further positive impact on forecast distributions."
The new portfolio will introduce additional diversification to BJT, with some assets beyond greater Tokyo as well as some residential assets. The post-transaction portfolio will have a 4% exposure to the residential market and an 11% exposure to markets outside of Tokyo, however the focus remains on retail and office properties in central and greater Tokyo.
"We are particularly pleased that the post-acquisition forecast distribution at 14.5% over the IPO distribution forecast is based on maintaining the gearing ratio at 52.9%." "The strong underlying performance of the existing portfolio and the number and diversity of the proposed acquisitions is a testament to the Babcock & Brown team in Japan; with the Japanese property market now starting to show strength not seen for over a decade, it is an exciting time for BJT."
Babcock & Brown and the Executive Directors of BBJPM will subscribe for their full entitlement under the Offer.
Contact
Eric Lucas,
Babcock and Brown
Phone: +61 2 9229 1800
Kelly Hibbins
Babcock and Brown
Phone: +61 2 9229 1800
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