Babcock & Brown released a statement to the ASX today in an effort to dampen market rumours that it could be forced to sell some of its holdings in its specialist managed funds.
We are comfortable with our positions and despite rumours to the contrary, have no intention or requirement of selling these securities," said Babcock & Brown CEO Phil Green said in a statement.
Mr Green said Babcock’s investments in its listed funds were core holdings, which the firm maintained as part of its focus on alignment of interest between itself and the funds’ security holders.
"These funds are, in the main, high yielding securities with strong stable cashflows and the full support of their banking syndicates," Mr Green said.
Babcock said short term loans were actively managed to maintain a conservative loan to valuation (LVR) against security.
"Babcock continues to manage this position and is meeting all payments to maintain this LVR," it said.
Babcock & Brown also announced today that it has acquired 20.6 million shares in Rubicon America Trust and 25.2 million shares in Rubicon Europe Trust Group.
In a separate deal, the BNB Japan Property Trust also acquired an economic interest in 21 million units of Rubicon Japan Property Trust.
“Babcock & Brown has well-developed real estate platforms in Japan, Europe and North America and has the expertise on the ground to understand the current market dynamics,” said Global Head of Real Estate at Babcock & Brown, Eric Lucas.
Despite the optimistic note, Babcock shares slid a massive 9.94% to close down at $13.96, a loss of $1.54 on the day.
