Investment group Babcock & Brown (BNB) announced today that has sold about 70% of its Swiss retail portfolio to create a joint venture (JV) with an unnamed Europe-based investor.
The joint venture is expected to last at least five years, with an expected total life of seven years.
Babcock & Brown said the Swiss retail portfolio is the initial portfolio of the JV and it is expected that capital would be "recycled" into other European real estate.
Babcock & Brown will earn base fees on the gross asset value of the portfolio, acquisition fees on new investments and also potential performance fees.
"We are pleased to be able to create this JV with a strong existing relationship in the region, which fulfils Babcock & Brown's objectives of profitably and efficiently recycling its capital whilst retaining long term management of the assets it originates," said Babcock & Brown local head of real estate, Eric Lucas..
Mr Lucas also said the deal represents about $233 million of $750 identified in ‘real estate held for sale' which it wanted to sell at the end of June.
The company said the sale of real estate jointly owned with the General Property Trust was also progressing well.
Babcock & Brown rose by 3.12% or 86 cents today to close up at $28.44.
