International investment and specialised fund and asset management group Babcock & Brown has formed a joint venture with a European high net-worth investor. 'The divestment represents approximately EUR 233 mln of the EUR 750 mln in real estate held for sale,' said Eric Lucas, global head of real estate at Babcock & Brown.

International investment and specialised fund and asset management group Babcock & Brown has formed a joint venture with a European high net-worth investor. 'The divestment represents approximately EUR 233 mln of the EUR 750 mln in real estate held for sale,' said Eric Lucas, global head of real estate at Babcock & Brown.

The Swiss retail portfolio of 53 properties will comprise the JV's initial portfolio while further opportunities to recycle capital into European real estate are expected to be initiated by Babcock & Brown in future. Babcock & Brown will earn base fees on the gross asset value of the portfolio, acquisition fees on new investments and potential performance fees.

'Although this disposition involves assets solely owned by Babcock & Brown, disposition activities for the remaining non-strategic European retail assets
jointly-owned with GPT are also proceeding smoothly. We are pleased to be able to create this JV with a strong existing relationship in the region, which fulfils Babcock & Brown's objectives of profitably and efficiently recycling its capital whilst retaining long term management of the assets it originates,' said Lucas.