Don’t be surprised if Multiplex SITES (ASX code: MXUPA) are redeemed later this year. In a recent investor update, Brookfield, the Canadian parent company of Multiplex, said a sale of properties held by the Brookfield Australia Property Trust (BAPT), the downstream recipient of the funds raised by the SITES issue, may result in their redemption.
Multiplex’s Step-up Income-distributing Trust-issued Exchangeable Securities (SITES) were issued in 2005. The proceeds were loaned by the issuer, the Multiplex Hybrid Investments Trust, to the Multiplex Property Trust, now known as the BAPT.
Brookfield stated once the sale proceeds were received, the SITES responsible entity (the trustee) “will assess BAPT’s net asset position and cash-flow in determining what, if any action, to take (which may include redemption of SITES at Face Value…plus unpaid distributions at that time, if any).”
