PROPERTY giant Lend Lease Corporation has upped its stake in retirement homes fund Babcock & Brown Communities Group (BBC) from 6.18 per cent to 7.27 per cent.
The transaction was valued at $3.06 million.
Last week, Lend Lease revealed itself as the mystery buyer that seized a 6 per cent stake in BBC, valued at $18 million.
This contributed to BBC being issued a "please explain`` by the Australian Securities Exchange, which wanted to know why its shares had surged from 37.5 cents on June 19 to 54.5 cents on June 20.
BBC responded that it had been the subject of takeover speculation.
BBC`s stapled securities were steady at 43.5 cents at 3.48pm (AEST) while shares in Lend Lease were up 38 cents, or 4.13 per cent, at $9.57.
Along with its sister funds, BBC has been caught up in investor jitters over the complex and debt-fuelled Babcock corporate model.
BBC recently announced it was trimming its forecast total distributions of 8.4 cents to 6.3 per cents per share to strengthen its balance sheet.
It said sales in its development business had been affected by slowing property markets.
Lend Lease`s $1.3 billion takeover offer for Australia and New Zealand`s retirement home operator FKP Property Group was recently rejected as too low but Lend Lease said it was open to continuing takeover talks.
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