Oxford Properties has prevailed with its AUD3.35bn (€2.08bn) offer for Investa Office Fund (IOF) following Blackstone’s decision to back out of a long-running bidding war for control of the Australian office landlord.
Blackstone told the responsible entity of IOF, Investa Listed Funds Management (ILFML) that it would not be lifting its AUD5.52 per unit bid.
The ILFML board said it would now unanimously recommend the Oxford Properties bid to its unitholders.
“ILFML has terminated the Blackstone scheme implementation agreement and entered into a scheme implementation agreement with Oxford,” said the board.
The latest Oxford Properties offer of AUD5.60 per unit reflects a 23.1% premium to IOF’s ex-distribution price of AUD4.55 per IOF unit on May 25, the last trading day prior to the announcement of the Blackstone proposal.
Oxford Properties, the real estate arm of Canadian pension fund OMERS, had previously made a cash offer of AUD5.50 per security.
ILFML Chairman, Richard Longes, described the Oxford Properties proposal as an excellent opportunity for IOF unitholders to crystallise their investment in IOF “at an attractive and certain price”.
Penny Ransom, IOF’s Fund Manager added: “It is very satisfying to see the considerable value that we have created from our portfolio.”
A meeting of IOF unitholders to consider the Oxford Properties proposal is expected in early December, with implementation scheduled to occur later in the same month.