This article is from the Australian Property Journal archive
GOODMAN Group is leading a consortium of three major pension and sovereign wealth funds to takeover and privatise the ING Industrial Fund.
The offer is to acquire the ordinary units of IIF for cash consideration reflecting a price equivalent to the published net tangible assets per unit at 30 June 2010, as opposed to IIF’s current trading price of 53 cents per unit – which is well below the July 2007 peak price of $2.75 – $2.80.
IIF currently has a market capitalisation of $1.192.4 billion and the fund’s NTA per unit is 57 cents per unit as at June 30 2010.
This indicative offer remains subject to the completion of due diligence as well as the full support and endorsement from both ING Management Limited and ING Groep N.V and the Foreign Investment Review Board.
Goodman had previously expressed interest in becoming the manager of IIF and allowing the fund to continue operating as a listed entity.
“Options to bridge the gap between IIF’s current trading price and NTA for IIF unitholders, one of which involves a privatisation of IIF, have also formed part of these discussions,” Goodman said.
IML chairman Kevin McCann said the board of IML has not formed a view at this stage as to the merits of the offer.
“There is no guarantee that discussions with the Goodman Consortium will lead to a formal, binding offer for all of the ordinary units in IIF. Accordingly, unitholders should take no action at this time.
“The Board of IML will engage with the Goodman Consortium to determine whether a transaction that is in the best interests of IIF unitholders can be developed and ultimately put to unitholders. This will require, subject to appropriate confidentiality and standstill arrangements, the provision of due diligence material to the Goodman Consortium,” he added.
Goodman said it is anticipated that group will hold circa 20% of the privatised IIF vehicle with the balance of the required equity being contributed by the other consortium members. Goodman will manage the privatised IIF vehicle and its underlying portfolio on behalf of the consortium. The privatised IIF vehicle will sit alongside Goodman’s existing suite of unlisted fund products.
Macquarie Capital Advisers is acting as financial adviser to the consortium. IML has appointed Goldman Sachs and UBS AG as financial advisors and Mallesons Stephen Jaques as legal advisor.
Meanwhile ING Real Estate Investment Management said it is undertaking a strategic review of its global REIM platform, which includes REIMA.
“ING, in conjunction with IML as representative for the unitholders in the five listed funds, is continuing to develop and assess a variety of strategic options with the objective of maximising value for all stakeholders,” REIMA CEO Denis Hickey said.
“Throughout this process there have been a number of discussions with various parties in relation to their interest all or some of REIMA’s five listed Funds. These discussions are preliminary in nature and are ongoing,” Hickey concluded.
Australian Property Journal
