Lead Manager

SECTION 3
BUSINESS OVERVIEW
European Real Estate
The Babcock & Brown Real Estate Group established a dedicated presence in the UK in 2001 and more recently
in Continental Europe with an initial focus on Spain, Italy, France and Germany.
Like the Real Estate Group’s expansion into Japan in 1998, the development of the European business is based on
the successful Australian principal investment model.The initial expansion effort has involved co-operation with
the Australian real estate team thereby ensuring effective transfer of intellectual property.
Babcock & Brown’s recent transactions in the UK have included:
Value
Project Babcock & Brown role (£m) Date
Global Switch
Arranged a £110 million debt facility for the refinancing of
a portfolio of data switching centres
110
2004
Eagle II
Acquired a portfolio of 17 commercial properties syndicated
out to Babcock & Brown clients. Babcock & Brown is
managing the realisation of the portfolio (14 out of the
17 properties have been sold)
48
2003
Eagle III
Acquired a portfolio of nine commercial properties
39
2003
Senator House
Advised Challenger International in connection with the
acquisition of an office building in central London
80
2002
Eagle I
Purchase of an office building in Manchester subject to a
35 year lease to a listed UK company
20
2001
In early 2004 the UK team also took the strategic step of co-establishing the first Foundation Investment Fund to
provide retail investors the opportunity to invest in a leveraged, diversified portfolio of income producing
properties. Once invested, the fund will have approximately £90 million of property assets under management.
Babcock & Brown’s expansion into continental Europe was only commenced in late 2003 with the acquisition of
a portfolio of 6,000 apartments in Kiel, Germany for approximately ¤170 million (see case study below). Since
January 2004, the Group has committed, via joint ventures, to an additional seven projects with a total completed
value of approximately ¤530 million, including:
Completed
Location Sector Description value (¤m)
Germany
Commercial
Arranged debt and partially underwrote the
syndication of a portfolio of long-term leased
commercial office buildings in Cologne
225
Italy
Residential
Acquired four separate development projects with
different JV partners including land subdivision and
apartment development projects
205
Spain
Residential
Acquired a 150-lot residential subdivision in a master
planned golf course project in Marbella, in JV with
La Perla Group
100
48