Posts Tagged ‘Real estate’

ASX Company News: Admerex To Acquire Coldwell Banker Licence

Friday, July 9th, 2010

Admerex Limited (ADL) has executed an agreement to acquire the Master Residential Franchise Licence from Coldwell Banker for Australia. The consideration will be in the form of ordinary shares to be issued to the parties who currently control the Master Residential Franchise Licence. The parties have negotiated the transaction based on a proposed value of $4 million for the licence and $1 million for Admerex. Under the terms of the business which operates that licence, and the proprietary systems, processes, marketing collateral and related IP plus the franchisee licences currently held by CB Greater Australia Pty Ltd. In addition, the Company will consider acquiring two franchises controlled by Alex Caraco subject to valuation. Admerex intends to immediately thereafter issue a prospectus with a view to raising sufficient capital to achieve the shareholder spread and additional working capital.

Mr Kim Goodall, Chairman of Admerex said; “We believe that this is an exciting opportunity for shareholders to participate in a well established market sector with a strong international brand and a proven business model. The real estate franchise and brokerage industry has attractive financial metrics whilst Alex and his team have a focused and successful core business around which we can build a strong market position.” Mr Alex Caraco said “Coldwell Banker in Australia is well positioned to take immediate advantage of the opportunities which currently exist in the residential real estate franchising sector. Through this transaction with Admerex we will have, the capacity to raise capital to expand and also have the flexibility to offer equity as consideration when acquisition opportunities arise.”

The Coldwell Banker presence in Australia commenced in 2002 and today has over  20 offices in three states, 200 sales associates and processes an annual gross real estate turnover in excess of $500 million (i.e. value of property sold). The business is operated by CB Greater Australia Pty Ltd. Coldwell Banker has grown to become an industry leader in a wide range of real estate markets such as Residential, Homes, Apartments, Townhouses, Villas, Land, and Holiday, Homes, Beachfront, Beachside, Country Acreage, Waterfront properties, resorts as well as Industrial, Commercial and Project Marketing. They also specialize in the sale of Prestige Landmark properties and even Islands, Resorts and Hotels through the Coldwell Banker Previews International Division. Coldwell Banker is  one of the largest real estate franchises in the world and is listed second in real estate in the Top 200 Franchises ranking as published in Franchise Times in 2009.

www.coldwellbanker.com.au

www.admerexgroup.com

http://www.traderdealer.com.au/Fundamentals/ADL

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RBA Rate Decision

Tuesday, May 4th, 2010

The RBA is set to decide on interest rates today and on the weight of evidence relating to inflation prospects, rates will be pushed higher. Data out yesterday confirmed that the manufacturing and real estate sectors are still booming.

Real estate data showed that established house prices across the country have increased by 20% in the past year with Melbourne’s prices up 28%, outstripping Sydney where prices were up 21%. Additional reports yesterday show that the Australian manufacturing growth for April accelerated at the fastest pace since 2002, according to the share business exchange. The performance of the manufacturing index jumped 9.3 points from March to 59.8 which is the highest level since May 2002. A figure above 50 shows the industry is expanding.

The resurgent manufacturing growth and booming house prices support the central bank’s view that the nation’s economy is expanding at or close to “trend.” Therefore the RBA is set to raise interest rates a further 0.25% to 4.5%, raise borrowing costs yet again.

By Michael Hevern
Head of Research

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Posted in Stock Market Analysis | 1 Comment

Charter Hall Group Acquires Macquarie Real Estate Assets

Saturday, February 13th, 2010

Charter Hall Group (CHC) is pleased to announce that it has agreed to acquire the majority of Macquarie Group Limited’s core real estate management platform. This transaction involves Charter Hall acquiring the management business associated with two listed and three unlisted real estate funds for $108 million and the majority of Macquarie’s holding in three of these funds for $189 million. The acquisition positions Charter Hall as one of the largest specialist real estate fund managers in Australia, with assets under management in excess of $10 billion across listed, wholesale and unlisted retail equity sources. The Platform complements Charter Hall’s existing operations, enhancing the current vertically integrated business, resourced by an additional 155 property executives increasing total Charter Hall staff to 220 personnel. Charter Hall will be investing in and providing management services across the full spectrum of real estate investment and development activities.

Commenting on the Acquisition, Charter Hall’s Chairman, Kerry Roxburgh, said “We are very excited about the Acquisition and believe that the Platform represents a strong strategic fit with our existing business. This Acquisition is expected to be earnings accretive in FY11 and provides an excellent basis to grow and develop Charter Hall.” David Southon, Joint Managing Director of Charter Hall said “The Acquisition of a vertically integrated platform complements the existing business, providing substantial scale and significant growth potential. The combination of Charter Hall’s capabilities and the continuity of Macquarie’s management team will provide an enhanced offering to investors.” David Harrison, Joint Managing Director of Charter Hall added “The Acquisition of this well- resourced Platform enables Charter Hall to diversify its equity sources further without losing focus on our unlisted wholesale and retail business. The outlook for real estate has improved substantially and we believe the Acquisition of the Platform at an attractive point in the real estate cycle will deliver long term value for security holders, provide one of the largest specialist property teams in Australia across the risk/return spectrum and exploit the growth opportunities available in a recovering property market.”

As partial consideration for the management business, Macquarie will receive an $85 million placement at $0.70 per security, representing a 10% strategic interest in Charter Hall. In addition, the Gandel Group, an existing strategic investor in Charter Hall, has committed to be issued with up to $68 million under the Offer and will at a minimum maintain their 12.2% interest in Charter Hall. Charter Hall has agreed to purchase the majority of Macquarie’s core real estate management platform which comprises of the management of two listed and three unlisted real estate funds — Co-investment holdings in Macquarie Office Trust, Macquarie CountryWide Trust and Macquarie Direct Property Fund Real estate management business. Charter Hall is acquiring a well-resourced platform with employment offers being made to over 95% of Macquarie real estate executives involved in the management business.  The purchase price of $108 million for the funds management business represents an FY11 EBIT multiple of 7.7x and 1.5% of assets under management. In addition, a further $15 million may be payable subject to an earn-out. The Acquisition will provide immediate scale which will complement organic growth of Charter Hall’s funds management business. Benefits include positioning Charter Hall as one of Australia’s largest specialist real estate fund managers, with assets under management increasing to over $10 billion. It will diversify Charter Hall’s equity sources – along with providing access to listed equity and significantly increases exposure to core funds, etc.

Charter Hall Group is a property funds management and development company, based in Sydney with offices in Melbourne, Brisbane, Perth and Auckland.  It combines Charter Hall Limited with Charter Hall Property Trust, which will now own and/or manage over $10 billion in real estate assets.

www.charterhall.com.au

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UGL Limited To Manage Westpac’s Australian Property

Thursday, January 28th, 2010

UGL Limited (UGL) today announced that it has signed a Master Service Agreement with Westpac Banking Corporation Limited for the integrated management of Westpac’s Australian property, real estate, facilities and capital works services.

UGL Services business has been contracted for an initial five years which can be extended to a total of nine years. The new agreement is in addition to property related works which UGL Services has been providing to Westpac and St George Banks in Australia for over four years. UGL Services now manages over 865,000 sqm2 of space on behalf of Westpac nationally and has a team of over 120 professional resources dedicated to delivering these services.

The new contract is regarded as the most advanced end-to-end offering in the property and outsourcing sector and includes: general services, real estate services, facilities management, including client services and critical site management, data centres, workplace management, program management, finance and data management, contract governance and performance management, and transition works. UGL Services was awarded the contract following an independently conducted market procurement exercise, and was successful due to its scale, market leading systems, innovative services, its ability to provide a broader range of services under the one contract, and its proven track record in the financial services sector.

UGL’s Managing Director and CEO Richard Leupen said that UGL Services continues to benefit from the growing trend for government departments and large blue chip organisations to outsource their non-core activities in order to lower their cost base. He said UGL Services has a successful track record in the financial services sector and this new partnership with Westpac confirms the group’s position as a market leader in outsourced property and BPO services.

www.ugllimited.com

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Valad Property Group European JV With Bank of Scotland

Thursday, July 2nd, 2009

Valad Property Group (VPG) announced it has just signed agreements with Bank of Scotland plc necessary to create the Diversified UK and European property joint venture, which has a term of three years. A small number of subsidiary documents remain to be executed and these are expected to be signed shortly. Valad has contributed the majority of its European / UK assets and all associated debt, to the DUKE joint venture. In addition, it has contributed €10 million (A$17 million) and will contribute a further €15 million (A$26 million) in cash to the DUKE joint venture over three years. Valad has also contributed its investment in Crownstone which had a value of €50 million (A$87 million) at December 2008. The DUKE joint venture has assumed the existing debt facilities associated with the above assets, the terms of which have largely remained unchanged, and which also have a term of three years. BoS has provided new undrawn facilities of £66 million (A$135 million) to the joint venture. A fee of £25 million (A$51 million) is payable by DUKE on termination of the DUKE debt facilities.

Valad and BoS each hold a 50% equity ownership in the DUKE joint venture company. Any cash or profits generated by DUKE will be used to retire debt within DUKE. Reflecting an anticipated fall in property values, Valad expects to carry its equity in the DUKE joint venture at nil value, as at 30 June 2009. Valad retains 100% ownership of Valad’s European funds management platform which is held separately from the DUKE joint venture. These agreements represent another significant milestone in the execution of Valad’s restructuring strategy, following the extension of Valad’s Asia Pacific debt facilities in February this year. The next component of Valad’s restructure is to finalise arrangements for the £36 million (A$73 million) Scarborough deferred payment, which is due for payment in September 2009. Having reached this stage of Valad’s restructuring, the Group is now in a position to refocus on growing the business.

Peter Hurley, Valad’s Managing Director said “We are pleased to announce this joint venture with BoS. BoS is an active real estate partner and this transaction represents a significant advancement in the relationship between it and Valad. “In February we outlined a number of milestones to stabilise our balance sheet. This announcement represents the fulfillment of a major element of that strategy. It also allows Valad to continue to hold an interest in a major European pool of assets which is positioned to benefit from any future recovery in market conditions.”

www.valad.com.au

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