This article is from the Australian Property Journal archive
THE Government of Singapore Investment Corporation and the Canadian Public Sector Pension Investment Board have revised their offer for all units in the Charter Hall Office REIT, except those held by Charter Hall Group.
The Independent Director Committee (IDC) has entered into a conditional agreement with Reco Ambrosia Pte Ltd (an affiliate of GIC) and the Public Sector Pension Investment Board of Canada.
Under the Proposal, CQO unitholders will receive $2.49 per unit for the Australian assets which represents an increase of $0.10 per unit over the consortium’s initial offer.
The offer is a discount of 4.2% to the pro forma estimated Australian NTA of $2.60 or a 2.8% discount to the estimated pro forma gross Australian assets.
The IDC has unanimously recommended the proposal, in the absence of a superior proposal and subject to the independent expert report.
CHOML independent chairman Roger Davis said given the Proposal remains at a discount to NTA, albeit small, the IDC considered a range of strategic options to maximise CQO unitholder value, together with the risks associated with each alternative.
“Having regard to the present instability in capital markets both globally and domestically, and having regard to other alternatives available to CQO, the IDC has concluded that the all cash Proposal offers the most compelling and certain value proposition for CQO unitholders and we believe this should be placed before unitholders for their consideration,” he added.
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