Multiplex announces $1 billion debt issue

SYDNEY - Multiplex Property Trust today said it was seeking to restructure a significant portion of its bank debt via a A$1 ($1.06) billion Commercial Mortgage Backed Securities (CMBS) issue.

Multiplex said the CMBS will be secured over 17 prime properties which have a fair market value of A$1.7 billion.

The assets are located in Sydney, Melbourne, Brisbane, Canberra and Perth.

The issue will be offered in two series with the first having a scheduled maturity of three years and the second with a scheduled maturity of five years.

The first series will be secured by eight office buildings including Sydney's KPMG Tower and NRMA Centre, AMP Place in Brisbane and BankWest Tower in Perth.

These assets provide a current weighted average occupancy of 98 per cent and weighted average lease expiry of 4.9 years.

The second series will be secured by five office buildings, including Sydney's Ernst and Young Centre, the Commonwealth Bank Building in Brisbane, and four retail centres.

These properties offer a current weighted average occupancy of 93 per cent and a weighted average lease expiry of 7.6 years.

The retail properties include King Street Wharf, Sydney, Pittwater Place Shopping Centre, Mona Vale, and Carillon City Shopping Centre, Perth.

Issue arranger is ANZ Investment Bank and joint lead managers are the Royal Bank of Scotland and ANZ Investment Bank.

The senior tranche will be rated by Standard and Poor's, Fitch and Moody's with the other tranches to be rated by Standard and Poor's and Fitch.

The tranches range from AAA through to BBB minus.

Multiplex Property Trust is part of the Multiplex Group.

- AAP