Rubicon US REIT Files Bankruptcy

January 21st, 2010  ::  Posted by CRE Console

IRS Center, Fresno CARubicon US REIT has filed for bankruptcy in a Delaware court according to a report in Reuters. This follows the company’s announcement that an administrator was assigned to its parent company in August of 2009.

According to Rubicon America’s website “The RAT Portfolio is now highly diversified with 33 properties located in 19 states throughout the US and in Washington DC.” This portfolio consists of 5.1 million square feet of GSA-leased property, including the 180,000 square foot IRS Center in Fresno, California, and another 1.1 million square leased by the private sector.

Property investment fund Rubicon US REIT is a subsidiary of Rubicon America Trust of Edgecliff, New South Wales in Australia. The fund suffered from soured investments in U.S. real estate.

The company listed assets and liabilities of between $100 million and $500 million in its bankruptcy filing.

According to its annual report for 2008, Rubicon America Trust had real estate investments worth $529 million as well as $61.6 million in commercial real estate loans.

The 2008 annual report also said Rubicon US REIT had issued about $100 million of notes.

Rubicon America Trust’s parent, Rubicon Asset Management Ltd, was found likely to be insolvent, according to a letter from administrators on Rubicon America Trust’s website. The administrators, Grant Thornton, also said it was likely Rubicon Asset Management would be liquidated.

You may view the entire list of the trust’s properties by clicking here.

Leave a Reply