Australian Unity Office Fund (AOF) has rejected a AUD480m (€309.3m) takeover bid from US-based Starwood Capital.

Last month, Starwood Capital Asia - on behalf of funds managed or advised by Starwood Capital Group - made its fourth attempt as it increased its bid by offering the ASX-listed property fund AUD2.95 cash for each AOF security.

AOF said Starwood submitted a revised proposal this week, which had translated to a potential reduction of AUD7.9 cents per unit – assuming the transaction was implemented after March 31, 2019.

AOF said on the recommendation of its independent board committee, management had decided to reject the revised proposal “as it does not represent compelling value for AOF unitholders”.

Australian Unity has now closed the data room provided to Starwood for due diligence.

Australian Unity said it would focus on enhancing the value of its diversified portfolio located over the metropolitan and central business districts of five Australian capital cities, including Sydney and Melbourne.