Valad, GPT at centre of bid speculation

Australian listed property trusts Valad and GPT Group - who have both recently established European platforms - are the focus of speculation about potential takeover bids. Having seen its share price drop in recent months along with the rest of the listed property trust sector in Australia, Valad's shares has risen from A$ 0.91 (EUR 0.56) to A$ 1.08 (EUR 0.66) in the past seven days amid heavy trading and speculation that potential bidders are aiming to acquire the property trust.

The Dexus Property group was mentioned in media reports in recent days as the most likely potential buyer. The former DB RREEF trust, run by Victor Hoog Antink, has a market value of A$5.1bn (EUR 3.12 bn) along with the potential backing of Deutsche Bank, whose 25% stake was bought out by Dexus in March. Stockland Group, run by Matthew Quinn was another suggested potential buyer. Stockland was also mentioned as a potential bidder for GPT, whose shares have also been heavily traded over the past week.

In 2007 Valad established a European platform through its EUR 1.1bn acquisition of the UK-based investor/developer Scarborough group, led by Sheffield United Football Club chairman Kevin McCabe. The transaction included the fund management business Teesland, which was majority owned by Scarborough. Valad's reported net profit for the second half of 2007 were A$ 21.1 mln (EUR 12.9mln), compared to A$ 66.8 mln (EUR 40.87mln) in the same period in 2006. Underlying earnings though were up 139% to A$ 74.7mln (EUR 45.7mln). The company's market capitalisation stands at A$ 1.57bn (EUR 960mln).