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Australia's Allco Finance to sell assets following refinancing trouble

Australia's Allco Finance to sell assets following refinancing trouble

Allco Finance Group Ltd. said Friday that three listed property trusts it manages will sell up to 2.1 billion Australian dollars (US$1.98 billion; euro1.3 billion) of assets after running into funding difficulties.
Facing a possible referral to the securities regulator for inadequate disclosure of its debt woes, Allco also said it will sell the assets in its subprime lending business Mobius Financial Services.
After reporting a halving of its annual net profit in 2007 to A$50 million (US$47 million; euro31 million), from A$102.7 million a year earlier, Rubicon America Trust plans to sell up to A$800 million (US$754 million; euro498 million) of assets over the next 12 months.
Allco Finance's acquisition of Rubicon Holdings Ltd. _ the manager of Rubicon America and its European and Japanese counterparts _ late last year was unpopular with investors because it increased Allco's exposure to international property, a sector under pressure.
Rubicon Europe Trust Group believes it can sell A$500 million to A$700 million (US$470 million-US$660 million; euro310 million-euro436 million) of assets at a "fair price" over the next 12 months, and Rubicon Japan Trust believes it can sell A$400 million to A$600 (US$377 million-US$566 million; euro250 million-euro374 million) million of assets, Allco Finance said.


Updated : 2021-08-01 10:30 GMT+08:00