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11-10-2015, 10:45 PM
This is part of the hot ind real estate segment that is bulking up with activities from private and listed segments...
Pitt’s 360 Capital closes in on ANI as trusts set to bulk up
Ben Wilmot
[Image: ben_wilmot.png]
Commercial Property Editor
Sydney
Greg Brown
[Image: greg_brown.png]
Property Reporter
Sydney
[Image: 164331-18a2e220-6e65-11e5-8cb9-949f91ef4ac5.jpg]
360 Capital chief executive Tony Pitt. Source: News Corp Australia
[b]The $63 billion Australian real estate investment trust sector could see a renewed bout of consolidation as property fund managers look to bulk up their operations, with 360 Capital Group at the vanguard of those looking to grow their operations.[/b]
After almost a year of hostilities with rival industrial manager Fife Funds, the Tony Pitt-led group is closing in on the Australian Industrial REIT (ANI), which will be merged with 360 Capital’s industrial property fund to create a near $1 billion vehicle.
The independent directors of the management of ANI, Fife Funds, on Friday night advised shareholders to take Mr Pitt’s revised offer, which closes at 5pm today.
Winning enough of the register to complete the deal today will be a race against the clock for the 360 Capital Industrial Fund, which held 36 per cent of the register on Friday.
A takeover of ANI is one of a number of moves being eyed by Mr Pitt in a sign that his company is eyeing growth through acquisitions. 360 Capital, via its total return fund, last month emerged with an 8.24 per cent stake in business park specialist Industria REIT, which is also viewed as a potential target for predators.
Both 360 Capital and Industria manager APN Property Group have emphasised that the stake has been made for investment purposes. However, combining the trusts would enlarge Mr Pitt’s operation and also help mitigate the impact of tough difficult leasing conditions that Industria faces in Brisbane.
Any deal may need to be friendly as APN has just upped its interests to 15.55 per cent.
“With the future of major A-REITs — including Investa Office Fund and Westfield Corporation — on the local bourse uncertain, investors want to back vehicles that have sufficient scale,” one analyst said yesterday. “People are looking for trusts of size,” he said.
The shift to consolidation is seen as the next step after a wave of floats in recent years by operators including GDI Property Group and, Garda Capital Group.
Managers will seek to consolidate so they can grow their trusts and gain inclusion in major indices, cut debt costs and get on to the radar of more institutions.
The moves come as they face hot competition in direct markets from deep-pocketed offshore players for assets being sold by major groups, including Charter Hall and Mirvac, as well as tycoons such as Kevin Seymour.
Striking corporate deals can cut also stamp duty imposts and many funds can also boost earnings by acquiring assets.
Pitt’s 360 Capital closes in on ANI as trusts set to bulk up
- THE AUSTRALIAN
- OCTOBER 12, 2015 12:00AM
Ben Wilmot
[Image: ben_wilmot.png]
Commercial Property Editor
Sydney
Greg Brown
[Image: greg_brown.png]
Property Reporter
Sydney
[Image: 164331-18a2e220-6e65-11e5-8cb9-949f91ef4ac5.jpg]
360 Capital chief executive Tony Pitt. Source: News Corp Australia
[b]The $63 billion Australian real estate investment trust sector could see a renewed bout of consolidation as property fund managers look to bulk up their operations, with 360 Capital Group at the vanguard of those looking to grow their operations.[/b]
After almost a year of hostilities with rival industrial manager Fife Funds, the Tony Pitt-led group is closing in on the Australian Industrial REIT (ANI), which will be merged with 360 Capital’s industrial property fund to create a near $1 billion vehicle.
The independent directors of the management of ANI, Fife Funds, on Friday night advised shareholders to take Mr Pitt’s revised offer, which closes at 5pm today.
Winning enough of the register to complete the deal today will be a race against the clock for the 360 Capital Industrial Fund, which held 36 per cent of the register on Friday.
A takeover of ANI is one of a number of moves being eyed by Mr Pitt in a sign that his company is eyeing growth through acquisitions. 360 Capital, via its total return fund, last month emerged with an 8.24 per cent stake in business park specialist Industria REIT, which is also viewed as a potential target for predators.
Both 360 Capital and Industria manager APN Property Group have emphasised that the stake has been made for investment purposes. However, combining the trusts would enlarge Mr Pitt’s operation and also help mitigate the impact of tough difficult leasing conditions that Industria faces in Brisbane.
Any deal may need to be friendly as APN has just upped its interests to 15.55 per cent.
“With the future of major A-REITs — including Investa Office Fund and Westfield Corporation — on the local bourse uncertain, investors want to back vehicles that have sufficient scale,” one analyst said yesterday. “People are looking for trusts of size,” he said.
The shift to consolidation is seen as the next step after a wave of floats in recent years by operators including GDI Property Group and, Garda Capital Group.
Managers will seek to consolidate so they can grow their trusts and gain inclusion in major indices, cut debt costs and get on to the radar of more institutions.
The moves come as they face hot competition in direct markets from deep-pocketed offshore players for assets being sold by major groups, including Charter Hall and Mirvac, as well as tycoons such as Kevin Seymour.
Striking corporate deals can cut also stamp duty imposts and many funds can also boost earnings by acquiring assets.