Blackstone emerges as mystery Investa suitor
New York private equity giant Blackstone has been confirmed by sources as the mystery suitor working on a rival takeover bid for the $2.5 billion office landlord Investa Office Fund.
The move follows the current cash and scrip offer in place for IOF by the Dexus Property Group, valuing the business at $2.5 billion.
Blackstone will partner with the Mirvac Group and China Investment Corporation to launch a counter attack to the Dexus bid, although some believe that while there is planning for the bid, there is a reasonable chance it may not eventuate.
The Australian’s DataRoom revealed today that investment bank UBS has been working with the group — now known to be Blackstone — on an offer to rival that by Dexus.
Should the Blackstone consortium bid for IOF, it would likely need to lob an all-cash offer to win greater favour with investors, sources say
Blackstone has been highly acquisitive in Australia, particularly in real estate, and has a voracious appetite for more local deals.
It has been named as one of the parties circling Woolworths Masters’ hardware store sites as a real estate play, and is the private equity firm proposing to recapitalise the troubled miner Arrium through its credit arm GSO.
As well as a string of real estate deals, it also bought Orica’s chemicals division, which is understood to have proven highly lucrative for the group.
IOF is being advised by Fort Street and Macquarie, while Dexus is being advised by Greenhill.
Investment bank UBS has been working with the group — now known to be Blackstone — on an offer to rival that by Dexus
Should the Blackstone consortium bid for IOF, it would likely need to lob an all-cash offer to win greater favour with investors, sources say.
The listed office landlord jointly owns some of its most prized skyscrapers with the Investa Commercial Property Fund.
ICPF has first right to buy the buildings it co owns should there be a change in their control and some market analysts believe such a move by the fund would be likely.
Shares in IOF were on Thursday steady at $4.11.
This article originally appeared on www.theaustralian.com.au/property.
