This article is from the Australian Property Journal archive
ENCOURAGED by the GPT and Dexus Property Group battle for Commonwealth Property Office Fund, Australand's Singaporean parent company, CapitaLand has done a back flip and sold a 20% stake.
CapitaLand announced on the Singapore Stock Exchange that it had engaged Citigroup to sell approximately 115.66 million stapled securities in Australand (worth $430 million), which represents approximately 20% of total stapled securities issued, in a secondary placement exercise.
CapitaLand had held a 59.1% stake in Australand (comprising 341,885,375 stapled securities valued at $1.28 billion as at November 20).
CapitaLand declined to reveal the identity of the buyer but said none of its directors have any interest, direct or indirect, in the secondary placement.
The announcement represents a major back flip for the $S13.25 billion company, which announced in July that it had no intentions to sell its shareholding in Australand.
At the time, CapitaLand said during a review, it received indicative proposals for the whole and parts of the business, however none of them have been sufficiently compelling.
“Australand will continue to provide CapitaLand with a stable stream of recurring income. It is well-positioned to benefit from its portfolio of quality commercial and industrial properties and is one of Australia’s largest industrial development businesses.
“It is also well placed to benefit from the improving outlook for the residential sector in key Australian cities,” CapitaLand’s company secretary Low Sai Choy said.
CapitaLand was prompted in December last year to undertake a strategic review of its stake in Australand after GPT Group made a takeover bid for Australand’s $2 billion plus commercial and industrial property business.
Austaland out rightly rejected the proposal because it said the offer valued the entire portfolio at a premium of $140 million to the 30 June 2012 book value, which is not a compelling value proposition. The proposal would transform the group into a residential property developer.
But GPT would not budge on its offer. GPT’s bid opened the doors for other parties and Australand also entertained bids from Mirvac, Stockland, Dexus Property Group, Apollo Global Management and Blackstone.
In May GPT abandoned its bid and shortly after Blackstone also withdrew its offer.
This week GPT spoiled Dexus Property Group and Canada Pension Plan Investment Board’s $2.87 billion bid for the Commonwealth Property Office Fund, with a rival $4 billion proposal.
GPT made an offer of $3 billion and the GPT Wholesale Office Fund wants to acquire five assets from CPA for $1.1 billion.
Property Review
