This article is from the Australian Property Journal archive
TONY Pitt’s 360 Capital has lobbed a takeover bid for real estate platform Irongate, which owns a $1.3 billion portfolio of office and industrial assets, with the bid potentially backed by ESR Real Estate and Citibank.
Already Irongate’s biggest shareholder with a near 20% stake, 360 Capital has put forward a bid of $1.65 per security, a 10% premium to Irongate’s previous closing price.
360 Capital had recently pushed for Tony Pitt as well as James Storey to join the Irongate board members, but the move fizzled.
Investec revealed to the market yesterday that 360 Capital’s “unsolicited, highly conditional and indicative non-binding proposal” – which it also described as “uncertain” – landed after Friday’s close.
It said 360 Capital internal funding resources have not been identified and are subject to approval, and additional conditional uncommitted third party financing include a requirement for 360 Capital to reach agreement with ESR Australia to buy some assets in Irongate’s portfolio on terms to be agreed, and a requirement for the entry into new debt facilities from Citibank for which 360 Capital has obtained a highly conditional non-binding letter of support from Citibank.
Irongate noted that its half-year results and declaration of distribution for the half-year ended 30th September are scheduled for 27th October 2021.
“In the ordinary course of its activities preparing for half-year results, the regular asset valuation process is well advanced and in the final stages of adoption by the IAP board. With updated asset valuations, any increases in IAP’s stated net tangible assets and net asset value backing per IAP stapled security will be released on or prior to announcement of the half-year results.”
Irongate listed on the ASX in May of 2019 as Investec Australian Property Fund.
It has appointed Macquarie Capital as its financial adviser, King & Wood Mallesons as its Australian legal adviser and Cliffe Dekker Hofmeyr as its South African legal adviser.
The move by 360 Capital is another back towards real estate. Its funds under management lifted from $444 million to $569 million over the 12 months to June.
