Propertylink, the Sydney-based investment management firm, has acquired a portfolio of Australian properties for A$174.35m ($132 million; €118 million).
The group purchased the Denison Diversified Property Fund from Sydney boutique fund manager Denison Funds Management at a 10.3 percent discount to the fund’s September 2015 book value of A$194.4 million. The sales process yielded 31 non-binding bids from which resulted 4 final bids in a third round of offers.
The Denison Diversified Property Fund is made up of a portfolio of 17 direct retail, industrial and commercial properties across the country.
Denison said in a statement that the sale was due to Denison Diversified Property Fund being unable to complete a refinance of senior debt earlier this year due to tightening capital markets. Denison said this affected the repayment of debt held by Forum Partners Investment Management, and required a sales process to provide investors with liquidity. Denison is a portfolio company of Forum and is held in the firm’s Forum Asian Realty Income III fund.
Denison earlier this month sold a portfolio of logistics and warehouse assets to Propertylink and Goldman Sachs for A$142 million. Days later Propertylink commenced trading on the Australian Stock Exchange (ASX) after successfully raising its target of A$503.5 million.
The group, which has more than A$1.55 billion of assets under management, has now joined a growing list of industrial and logistics firms that have listed their businesses, including Global Logistic Properties and the Goodman Group.