Archive | Allco

Allco takes over Record

Published 11 June 2006


Passive Australian investor Record Investments Ltd has been turned into an active investment bank after its merger with its major shareholder & manager, Allco Finance Group Ltd.



Record shareholders agreed to the merger on Friday. It involves Record buying the Allco business for $A756 million in shares and changing Record’s name to Allco Finance Group Ltd.


Post-merger, Record’s former shareholders will own 52% & Allco shareholders 48% of the new company.


Allco has specialised in 6 core asset classes – aviation, shipping, rail, property,small-ticket equipment & financial assets. It intends to expand into other asset classes and is working on a number of reneweable energy projects.


David Coe – chairman & managing director of Allco and chairman of Record until the merger process began, and executive chairman of the new Allco – told the Record shareholders the company also saw opportunities for non-renewable energy outside Australia, but fewer opportunities for infrastructure assets in the highly competitive Australian market.


Mr Coe said the company would continue to generate regular annuity income by creating & managing specialist investment vehicles to support asset finance activities.


Allco listed in Australia in 2001. Its most recent listing was the Pan-Asia commercial reit in Singapore in March.


The Sydney-based group has had some involvement in New Zealand.


In March, Strategic Investment Group Ltd’s shareholders sold half their company to a privately held Allco arm, the Allco Principals Trust. Last year, another listed arm, Allco Equity Partners Ltd, bought 17.1% of Baycorp Advantage Ltd but a bid for control was successfully resisted.


All resolutions except one were carried near-unanimously at Friday’s Record meeting. The exception was the resolution to increase directors’ fees from $A700,000 to $A1.5 million, which Mr Coe said was a cap, allowing the company to hire new directors if new skills were required.


He said the nature & complexity of the business were changing, from a passive investment vehicle to a diversified global financial services business. The vote on the fees was carried with 56% support.


Earlier story:


22 March 2006: Strategic’s shareholders sell 50% to Allco


 


Website: Record Investments


Allco Finance Group


 


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Attribution: Company statements, websites, story written by Bob Dey for this website.

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Allco forms $S376.5 million Singapore-based international commercial reit

Published 25 March 2006


Sydney-based Allco Finance Group Ltd, which bought half of New Zealand property finance specialist Strategic Investment Group Ltd this week, was also busy in  Singapore, where it launched a $S376.5 million reit which will invest internationally.



The Allco Commercial Real Estate Investment Trust, managed by Allco (Singapore) Ltd, was formed last September and launched a $S15 million public offer on 23 March, closing in Singapore on Tuesday 28 March.


It will invest primarily in real estate & real estate-related assets in the office & retail sectors in Singapore, other parts of Asia & Australia. Its initial portfolio comprises:

100% of the China Square Central Property, Singapore, comprising a grade A office tower, a retail complex & carpark at 18 Cross St and 2 rows of conservation shophouses at 20 & 22 Cross St
a 50% interest in Central Park (Perth), a premium grade, landmark office tower on Perth’s main corporate address, St George’s Terrace
an $A48 million ($S59.3 million) investment in Allco Wholesale Property Fund, which has a 50% interest in Ernst & Young Centre, Sydney, Australia, 50% interest in the World Square retail complex & public carpark, Sydney and 100% of 222 Exhibition St, Melbourne. The manager expects the Allco reit’s investment to represent an interest of 15.7% in the wholesale fund.

Based on the $S/unit offer price, the annualised forecast distribution yield for the period 1 March-31 December 2006 is 5.77%, and 5.9% for 2007.


Website: Allco Singapore reit


 


Earlier story:


22 March 2006: Strategic’s shareholders sell 50% to Allco


 


Attribution: Company statement to Singapore SX, story written by Bob Dey for this website.


 


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