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PR Newswire
04-06-2014, 12:11 PM
Never a dull moment in property trust land
•
• THE AUSTRALIAN
• JUNE 04, 2014 12:14PM
FRANK Lowy’s valiant efforts at banishing the property trust’s reputation for perpetual dullness has been usurped by raiders from the home of boredom, Singapore.
Just as Stockland’s (SGP, $4.045) improved offer for fellow residential-oriented Australand (ALZ, $4.56) looked to be gaining the target board’s acceptance, along comes the Lion City’s Frasers Centrepoint to spoil the delicate courtship.
Frasers is offering $4.48 a share cash in a proposed off market offer, valuing Australand at $2.4bn.
Australand securityholders can also keep the expected first half distribution of 12.75c, as well as a similar payout after Frasers offer becomes unconditional.
Having promised Stockland the keys to the mythical due diligence “data room” last week, Australand has now offered Frasers exclusive access to its innards for four weeks.
Stockland may be ruing dubbing last Friday’s $4.35 scrip bid (with a limited cash alternative) as final.
But the property commentariat was unanimous the offer was fully priced, with little prospect of an interloper emerging.
Given Frasers can glean few synergy benefits and given Stockland’s superior credit rating, its offer looks all the more full.
Stockland retains a handy 19.9 per cent Australand stake, while the Frasers offer is subject to 50.1 per cent minimum acceptance.
There’s a possibility of this one becoming a stalemate, although the most likely scenario is that Stockland does a Bega Cheese and exits the race with a $70m gain on its investment.
We’re presuming that unlike with our bourse, Canberra has no problems with the Singaporeans owning a chunk of our residential real estate.
Frasers Singaporean portfolio includes 12,000 homes and 8000 serviced apartments, while locally it is a joint venturer in Sydney’s $2bn Central Park development.
“I think this is a great outcome for Australand shareholders,’’ says Morningstar property watcher Tony Sherlock, noting Australand shares were trading at $3.70 only three months ago.
We would be inclined to hold Stockland shares (which advanced 10c this morning) and sell Australand on market.
The Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author does not hold shares in the companies mentioned.
•
• THE AUSTRALIAN
• JUNE 04, 2014 12:14PM
FRANK Lowy’s valiant efforts at banishing the property trust’s reputation for perpetual dullness has been usurped by raiders from the home of boredom, Singapore.
Just as Stockland’s (SGP, $4.045) improved offer for fellow residential-oriented Australand (ALZ, $4.56) looked to be gaining the target board’s acceptance, along comes the Lion City’s Frasers Centrepoint to spoil the delicate courtship.
Frasers is offering $4.48 a share cash in a proposed off market offer, valuing Australand at $2.4bn.
Australand securityholders can also keep the expected first half distribution of 12.75c, as well as a similar payout after Frasers offer becomes unconditional.
Having promised Stockland the keys to the mythical due diligence “data room” last week, Australand has now offered Frasers exclusive access to its innards for four weeks.
Stockland may be ruing dubbing last Friday’s $4.35 scrip bid (with a limited cash alternative) as final.
But the property commentariat was unanimous the offer was fully priced, with little prospect of an interloper emerging.
Given Frasers can glean few synergy benefits and given Stockland’s superior credit rating, its offer looks all the more full.
Stockland retains a handy 19.9 per cent Australand stake, while the Frasers offer is subject to 50.1 per cent minimum acceptance.
There’s a possibility of this one becoming a stalemate, although the most likely scenario is that Stockland does a Bega Cheese and exits the race with a $70m gain on its investment.
We’re presuming that unlike with our bourse, Canberra has no problems with the Singaporeans owning a chunk of our residential real estate.
Frasers Singaporean portfolio includes 12,000 homes and 8000 serviced apartments, while locally it is a joint venturer in Sydney’s $2bn Central Park development.
“I think this is a great outcome for Australand shareholders,’’ says Morningstar property watcher Tony Sherlock, noting Australand shares were trading at $3.70 only three months ago.
We would be inclined to hold Stockland shares (which advanced 10c this morning) and sell Australand on market.
The Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author does not hold shares in the companies mentioned.