This article is from the Australian Property Journal archive
CANADIAN giant Brookfield has made a $695 million bid, trumping US rival Hometown America, for Gateway Lifestyle.
Brookfield has made an offer of $2.30 per security to acquire 100% of Gateway Lifestyle. The $695.06 million bid gazumps Hometown America’s $638 million offer earlier this month.
As a result, Gateway has opened the door and access to Brookfield to conduct due diligence.
The move on Gateway is one of several plays in Australia by the Canadian asset manager, including the making a $4.35 billion bid for Australia’s private hospital operator Healthscope last month.
Brookfield continues to chase property globally. It is the second largest real estate asset manager globally with US$155.5 billion of assets under management – behind US giant Blackstone with US$193.8 billion.
Brookfield said it intends to fund the proposal through available equity and debt commitments.
The Brookfield proposal is subject to the following conditions including regulatory approvals from the Foreign Investment Review Board.
Gateway said in a statement the Brookfield proposal is superior to the indicative, non-binding proposal received from Hometown America.
‘The board considers that engaging with Brookfield to determine if a binding offer can be put to Gateway Lifestyle securityholders is in the interests of securityholders.
“Accordingly, Gateway Lifestyle will provide due diligence access to Brookfield on an exclusive basis,”
“There is no guarantee that the Brookfield Proposal or any discussions with Brookfield will lead to a formal binding offer.” Gateway said.
Australian Property Journal
