Fortress Investment Group has emerged as the most likely bidder for Mapeley, the commercial property company, after Mapeley admitted that it had received a takeover approach.
Fortress Investment Group has emerged as the most likely bidder for Mapeley, the commercial property company, after Mapeley admitted that it had received a takeover approach.
The Times newspaper reported on Wednesday that the approach is expected to be the first of many for quoted property companies, as most are now trading at discounts of 25 - 40 % of their net asset values. Fortress, which owns about half of Mapeley and originally floated the firm in June 2005, refused to comment on market rumours linking the group to the approach.
However, the report said a senior trader expects the New York-based investment house to make an offer of about EUR 26.4 per share but that it would not approve any other deal at below EUR 30.35, the price at which Fortress floated Mapeley.
A spokeswomen for Mapeley also refused to confirm or deny that Fortress was behind the approach. Although the firm confirmed that an approach has been made, 'The board of Mapeley has received an indicative non-binding proposal to acquire all of Mapeley’s outstanding shares. Discussions are at an early stage and there can be no certainty that any offer will be made or as to its terms.'
Mapeley's EUR 2.9 bn of property assets include the HM Revenue & Customs buildings and the Abbey estate, which accounts for nearly half of its assets. However, the company had debts valued at EUR 1.98 bn at the end of its third quarter on 30 September. Full-year figures, due out shortly, are expected to show devaluations of 5% or more on the value of its EUR 1.32 bn of regional offices.
