Property And Capital Markets

RMIT UNIVERSITY

Individual Assignment

BUIL 1228

Property and Capital Markets

Semester 2 2015

School of Property, Construction and Project Management

RNY Property Trust

Name: Rodrigo de Castro Penteado (s3530537)

Date: 18 September 2015

Course Lecturer: Dr. Wejen Reddy

Summary:

Introduction        

Location of Properties        

Types of Properties        

Trust Size and Debt Levels        

Location of Head Office        

References        

Introduction

The RNY Property Trust, a company that was listed in September of 2005, has its home office at Sydney, in New South Wales, but their primary strategy is to invest in the real estate market of the New York Tri-State area. They have 75% of indirect interests in 20 office properties located in the New York Tri-State area in their portfolio (ASX 2015). The other 25% of their portfolio are owned by affiliates of RXR Realty LLC and its partners (RNY Annual Report 2014).

The RXR works as a local expert for the RNY, considering they have a gross value of US$9.7 billion of property and office space, localized at Long Island, New Jersey, Westchester/Connecticut and Manhattan (RNY Annual Report 2015).

According to the RNY Half Year Report of 2015, their major investors are Scott Rechler, Michael Maturo and Jason Barnett, with 51,252,240 units each. The company has 263,413,889 total units on issue, and considering the valuation of June of 2015, the total units’ value for $145,261 million dollars, making the three major investors responsible for approximately 58% of all units (RNY Half Year Report 2105).

Location of Properties

The properties are listed in the NY Tri-State area, as shown in the chart below:

LONG ISLAND	WESTCHESTER COUNTY
1. Hauppage	150 Motor Parkway	7. Elmsford	80 Grasslands Road
300 Motor Parkway	100 Grasslands Road
2. Melville	35 Pinelaw Road	8. Tarrytown	555 White Plains Road
200 Broadhollow Road	560 White Plains Road
3. Syosset, NY	6800 Jericho Turnpike	580 White Plains Road
6900 Jericho Turnpike	660 White Plains Road
4. Uniondale	55 Charles Lindbergh Boulevard	FAIRFIELD COUNTY
NORTHERN NEW JERSEY	9. Stanford	225 High Ridge Road
5. West Orange	100 Executive Drive	10. Shelton	710 Bridgeport Avenue
200 Executive Drive
300 Executive Drive
10 Rooney Circle
6. Nutley	492 River Road

Chart 1 – List of properties (RNY Annual Report 2015).

As can be seen in the chart 1, all the properties are located in the same region, but some regions have more investment than others. The region with more investment is located in the state of New Jersey, with four different cities with investment.

[pic 1]The image below shows the location of the properties in the map of the northwest part of the United States:

Image 1 – Location of the properties in the map (RNY Annual Report 2014).

The numbers of each city, as presented in the Chart 1, are represented in the Image 1, and each colour from the Chart 1 represents a different region of investment, and there are the same colours in the map of Image 1. There are 10 different cities and 20 different office properties included in the portfolio of the company.         

According to the RNY Annual Report of 2014, the portfolio is distributed with 30,4% for Long Island, 27,9% for Westchester County, 23,8% for Fairfield County, and 17,9% for Northern New Jersey. Even though the biggest property is in Fairfield County (225 High Ridge Road in Stamford, with 15,7% of the whole portfolio), there are more properties in the region of Long Island, that’s way the proportion of the portfolio is bigger in that region (RNY Annual Report 2014).

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