US investment firm Starwood Capital Group revealed plans to launch an all-cash takeover bid of $485m to Australian Unity Office Fund (AOF), a Melbourne-based property trust.
In this connection, the company’s controlled affiliate SOF-XI Legs will offer to buy all outstanding units in the Australian company for $2.98 per unit. SOF-XI Legs will make the offer directly or through an affiliate.
Australian Unity Office Fund calls itself a mutual company that helps its members with products like home loans, saving accounts, investment bonds, wholesale wealth solutions, property investment, and others.
Starwood Capital gathers support for takeover of Australian Unity Office Fund
According to Starwood Capital, investors holding 16.7% of Australian Unity Office Fund’s shares are supporting the off-market takeover offer by entering into pre-bid agreements with SOF-XI Legs.
Starwood Capital claimed that the offer provides scope for the Australian Unity Office Fund’s unitholders to access liquidity in the company at a certain value and at an effective price. The US firm said that the price it is offering is more than the previously recommended scheme proposal in late 2019 made by Charter Hall Group / Abacus Property Group (CHAB Scheme).
The offer from SOF-XI Legs is said to be an attractive opportunity for all shareholders to realise liquidity at a certain cash value, said the US investment firm.
Starwood Capital Group senior managing director and real estate acquisitions global head Jeffrey Dishner said: “Starwood’s offer to acquire AOF for $2.98 per unit provides unitholders with an opportunity to obtain liquidity at a certain price. The Offer Price also represents a premium to the current trading levels and NTA.
“We look forward to engaging with all stakeholders regarding the Offer as we work to successfully complete the transaction.”
The offer from SOF-XI Legs to the Australian mutual company will be subject to approval from the Australian Foreign Investment Review Board (FIRB), a 90% minimum acceptance condition, and certain conditions.
In response to the offer, Australian Unity Investment Real Estate (AUIREL), as responsible entity of Australian Unity Office Fund, said that it will set up an independent board committee to look into the takeover bid.
