Goldman Sachs is set participate in a new wholesale real estate fund with Propertylink to be created following the purchase of five Australian offices.
Market sources confirmed today that Propertylink has signed off with Denison Funds Management to buy the B-grade office buildings located in three states for almost AUD177m (€120m).
Denison is selling the assets, part of larger diversified portfolio, after it failed to secure refinancing for its debts.
Propertylink declined to comment, but sources told IPE Real Estate that the structure of the new investment vehicle between Propertylink and Goldman Sachs is based on an existing template they have used previously.
Propertylink created the Propertylink Australian Industrial Partnership (PAIP) I, which now owns some AUD700m of assets, in 2014 for Goldman Sachs and Grosvenor.
To facilitate the exit of its partners, Propertylink is floating the company using the assets in PAIP I to seed the listed vehicle.
Sources said the float would create a “liquidity event” for Grosvenor and Goldman Sachs, and that the latter will reinvest part of the proceeds in the new wholesale vehicle.
Propertylink announced this week that it would seek to raise AUD500m to float the company on the Australian Stock Exchange.
Sydney-based Propertylink is due to go on a global roadshow to Asia as part of the IPO marketing exercise.