This article is from the Australian Property Journal archive
BROOKFIELD has made a $435 million offer to buyout the Brookfield Prime Property Fund.
Brookfield is seeking to buy all the units in the fund it currently does not own at $8.89 per unit less the amount of any distributions, which is 7.5 cents per unit.
The adjusted offer price of $8.815 per unit reflects a premium of approximately 18% to the closing price on ASX on 6 April 2017 of $7.50 per unit and 32% premium to the 90 day volume weighted average price of $6.69 per unit.
BPA currently owns three properties in its portfolio, including a 50% interest in 680 George St and 50 Goulburn St in Sydney, American Express House at 12 Shelley St Sydney and a 50% stake in 108 St Georges Terrace Perth.
The portfolio is valued at $707.0 million with an occupancy rate of 91% and WALE by ownership and income was 4.7 years.
The most expensive asset in the portfolio is 680 George St and 50 Goulburn St Sydney, valued at $363 million followed by American Express House at $178 million and $166 million for the Perth office.
The fund’s independent directors have indicated that they recommend the proposal in the absence of a superior offer.
Following Brookfield’s approach, the independent directors have sought an indication
from the major independent unitholders as to whether they might in principle support the proposal.
Phoenix Portfolios which holds approximately 5.5% interest has indicated that it currently intends to vote in favour. Greig & Harrison Pty Ltd, which holds a 4.9% interest of units is also in favour.
Australian Property Journal