This article is from the Australian Property Journal archive
CENTURIA Metropolitan REIT (CMA) has increased its takeover offer for GPT Metro Office Fund (GMF) by 4 cents to $2.48 to $318.76 million.
Centuria listed property CEO Nicholas Collishaw said having completed a thorough review of GMF after gaining access to GMF’s data room, Centuria has been able to increase its offer price.
Furthermore, Centuria will increase the cash payment of to 31 cents (up from 27 cents), including a 8 cent cash contribution from Centuria Capital (up from 4 cents).
Previously Centuria had proposed a merger by way of a trust scheme. Now it will make the offer by way of an off-market takeover with a 50.1% minimum acceptance condition.
Centuria Metropolitan REIT, together with Centuria Capital Limited, currently hold a 16.1% interest in GMF.
“We remain convinced that the combination of the CMA portfolio and GMF portfolio best meets GMF unitholders’ expectations of asset quality and return profile.
“Centuria’s capability and deep understanding of Australia’s metropolitan real estate markets enables us to continue to deliver on the original investment strategy offered to both CMA and GMF unitholders. The combined portfolios provide the opportunity to add value through active management while reducing risk via increased diversity of income source and geographic spread of assets,” Collishaw said.
Collishaw said Centuria strongly believes its bid is the only credible merger proposal after noting rival bidder, Growthpoint Properties Australia’s (GOZ) own admission that the GOZ proposal would likely to be challenging.
“As of the date of this letter, GOZ has not put forward an alternative proposal and there is no guarantee that any alternative proposal from GOZ will eventuate.
“We look forward to progressing the Centuria takeover bid with GMF’s independent board committee for the benefit of all investors,” Collishaw concluded.
Last week GOZ announced that GMF’s independent board committee has declined to engage.
GOZ’s managing director Timothy Collyer admitted that given Centuria’s combined 16.1% interest in GMF, it considers that continuing to pursue its takeover of GMF via a trust scheme is likely to be challenging.
Australian Property Journal
