Australian office landlord Investa Office Fund received an unsolicited conditional proposal from Canada-based global real estate investor Oxford Properties Group to acquire 100% of the company.
Oxford Properties is offering a cash price of A$5.50 per unit, 2.8% higher than Blackstone Group LP's increased offer of A$5.3485 per unit. Any distribution declared or paid by Investa Office Fund on or after the Sept. 4 announcement will be deducted from Oxford Properties' offer. Without the 10.15 Australian cents distribution that Investa Office Fund has declared, Blackstone's offer translates to A$5.45 per unit.
Investa Office Fund's responsible entity, Investa Listed Funds Management Ltd., recommended that shareholders take no action at this point. The responsible entity's board is considering the Oxford Properties proposal and will update unit holders accordingly.
The directors of Investa Listed Funds continue to unanimously recommend the Blackstone proposal.
Oxford Properties had signed a deal in late August with Investa Office Fund unit holder Investa Commercial Property Fund for a 9.99% stake in the office fund, but the deal is in limbo, following Investa Commercial changing its tune and declaring its support for Blackstone's offer in the absence of a superior proposal. The A$314 million stake deal was conditional upon the Blackstone bid being voted down or not voted on by Sept. 18.
The new bidder said it is willing to amend the terms of the Aug. 20 securities sale deed with Investa Commercial. It is also asking for confirmatory due diligence to make its offer for Investa Office Fund binding, among other conditions.
Investa Office Fund called for a temporary trading halt earlier Sept. 4.