Carving up GPT's pie
In several role reversals, UBS, Goldman Sachs JBWere and Deutsche Bank will split $57 million in fees for GPT's rights issue and placement, leaving Goldman at the head of the ECM tables for 2008.
The three banks underwriting the massive GPT rights issue and placement – UBS, Goldman Sachs JBWere and Deutsche Bank – will share fees of up to $57 million.
UBS, which also acted as advisor on the transaction, will take an extra fee of up to $14.5 million for its role.
GPT announced the plans for a rights issue and placement to raise up to $1.9 billion to help it de-gear its balance sheet.
At least $1.3 billion will come from the fully underwritten rights issue, which will be pitched at a minimum of 60c a share, subject to institutional demand. If it goes at the top end of 75c, up to $1.625 billion could be raised.
Singapore's Government Investment Corp is also coming on board, taking $250 million in a placement of perpetual exchangeable securities, and underwriting $300 million of the retail component of the rights issue. That could give it a stake of as much as 18 per cent in GPT.
The three managers and underwriters are getting a fee of 3 per cent for their work, quite high considering the size of the issue, but below the 4 per cent-plus being charged in recent issues, such as Gunns and Paperlinx. UBS is getting an advisory fee of 0.75 per cent.
The UBS team was led by Guy Fowler, who recently moved from co-head of ECM to head of investment banking, with help from Clem Salwin and Simon Cox.
The Deutsche Bank team was led by Michael Richardson and Tim Ryan, while the Goldman Sachs JBWere team was led by Andrew Stainer from investment banking and Curtis Smith from ECM.
There was no role in the rights issue for Macquarie Group, which had been GPT's advisor when it fended off a bid from Stockland Trust in 2004 that had been pitched at $3.70 a share. Ironically, it was UBS that was advising Stockland at the time.
It is the third, but by far the largest, major fund-raising in the property sector in recent weeks, with Stockland using UBS for its $300 million issue and CFS using Goldman and JP Morgan for its $325 million issue. The tip is there is more to come from the sector.
The GPT raising will once again consolidate Goldman's placing at the head of the ECM tables for 2008, with UBS now able to restake its claim for second place. Macquarie is now languishing in the bottom half of the top 10.
UBS, which also acted as advisor on the transaction, will take an extra fee of up to $14.5 million for its role.
GPT announced the plans for a rights issue and placement to raise up to $1.9 billion to help it de-gear its balance sheet.
At least $1.3 billion will come from the fully underwritten rights issue, which will be pitched at a minimum of 60c a share, subject to institutional demand. If it goes at the top end of 75c, up to $1.625 billion could be raised.
Singapore's Government Investment Corp is also coming on board, taking $250 million in a placement of perpetual exchangeable securities, and underwriting $300 million of the retail component of the rights issue. That could give it a stake of as much as 18 per cent in GPT.
The three managers and underwriters are getting a fee of 3 per cent for their work, quite high considering the size of the issue, but below the 4 per cent-plus being charged in recent issues, such as Gunns and Paperlinx. UBS is getting an advisory fee of 0.75 per cent.
The UBS team was led by Guy Fowler, who recently moved from co-head of ECM to head of investment banking, with help from Clem Salwin and Simon Cox.
The Deutsche Bank team was led by Michael Richardson and Tim Ryan, while the Goldman Sachs JBWere team was led by Andrew Stainer from investment banking and Curtis Smith from ECM.
There was no role in the rights issue for Macquarie Group, which had been GPT's advisor when it fended off a bid from Stockland Trust in 2004 that had been pitched at $3.70 a share. Ironically, it was UBS that was advising Stockland at the time.
It is the third, but by far the largest, major fund-raising in the property sector in recent weeks, with Stockland using UBS for its $300 million issue and CFS using Goldman and JP Morgan for its $325 million issue. The tip is there is more to come from the sector.
The GPT raising will once again consolidate Goldman's placing at the head of the ECM tables for 2008, with UBS now able to restake its claim for second place. Macquarie is now languishing in the bottom half of the top 10.
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