Last line of interest to me.
end Lease to Establish A$515 Mln U.S Property Trust (Update2)
(Adds details throughout)
Sydney, Oct. 28 (Bloomberg) -- Lend Lease Corp. and Equity Office Properties Trust will sell units in a A$515 million (US$332 million) portfolio of U.S.
properties and list the trust on the Australian Stock Exchange.
Lend Lease, Australia's largest property company, said it will buy stakes of between 25 percent and 75 percent in each of the seven prime office towers
from Chicago-based Equity Office. ''This is to create an entry vehicle to allow Australian investors into the high yielding U.S. market,'' said Lend Lease
Chief Executive Asia-Pacific David Clarke.
The announcement caps a three-week A$1.3 billion (US$840 million) shopping spree by Lend Lease in the U.S., Asia and Europe, including the US$169
million purchase of U.S.-based Boston Financial Group, a 55 percent stake in Hong Kong-based life insurer CEF for US$161 million and the U.K.'s
Peninsular & Oriental Steam Navigation Co.'s bovis construction arm for US$470 million.
Lend Lease is also in talks to buy three profitable businesses from Dallas-based Amresco Inc. -- asset management, commercial mortgage banking and
servicing, and real estate structured finance business.
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I think something is up here. I look at this as a 30 day hold. I don't think earnings are going to be great, but I do think the cash from this deal will streamline operations and debt structure at AMMB and set a positive tone for the future.
Downside seems to be about 2 1/2, but who knows they could go bust too.
But I don't think so.
Good Luck
Thurston |
