BGP Holdings was the ultimate parent company of BGP Investment which was established in mid 2005 as the European holding vehicle of the major joint venture between Babcock & Brown and the GPT Group. By 2007 the portfolio had grown to nearly €4 billion in gross assets before global economic conditions deteriorated and prompted a partial sell down.
EXIT OF BABCOCK & BROWN
In mid 2008 Babcock & Brown encountered increasing liquidity problems in Australia due to the direct impact of the global credit crisis. As a result Babcock & Brown spent several months in negotiations with its bank syndicate. Finally, a vote by subordinated debtholders in January 2009 put Babcock & Brown Ltd. into liquidation and the company was delisted from the Australian Stock Exchange. Some operating and holding companies continued to function in a controlled wind-down environment, working closely with the parent company's liquidator and a committee of key creditors.
Babcock & Brown remained a 50% shareholder in BGP although the stake had no economic value, being subordinated to the ex-GPT preference share claim. BGP had the right to veto any disposal of this interest. Babcock & Brown had an option to put these shares to BGP Holdings Europe under defined conditions. This option was exercised at the beginning of 2012.
EUROPEAN EXIT OF GPT
The collapse of European real estate valuations and high gearing of the JV caused significant concerns at the other joint venture partner GPT, given that the JV structure was financed 80% by GPT in the form of a preferred loan . Under pressure from analysts and shareholders GPT decided in mid-2009 to exit its European investments to concentrate on its core geography and sectors. In addition to the disposal of BGP Investment this separation also entailed the sale of GPT's European asset management platform, GPT Halverton, to Internos Real Investors in December 2009.
SEPARATION OF BGP
To effect the divestment of the joint venture GPT made an in specie distribution to its shareholders. Each shareholder received in August 2009 a dividend representing non-transferable shares in BGP Holdings PLC in Malta, BGP Investment's parent company. Hence BGP Holding has some 59,600 individual shareholders, with only five investors holding more than 5% of BGP's share capital. To minimise the administrative burden the shares are held via a trustee in Australia, who represents the interest of the shareholders of the company. GPT retained a 5.3% interest in the company. Zero value was assigned to the units at issue.
SALE OF BGP INVESTMENT
BGP Holdings PLC (BGPHoldings) announced on October 20, 2016 the sale of 100 percent of the business and assets of BGP Investment S.àr.l. to purchasing vehicles advised by Morgan Stanley Real Estate Investing at an enterprise value including net debt of over €1.1billion. The transaction closed on November 14, 2016.