Blackstone takes on $1.1 Billion Property Portfolio


Private equity firm Blackstone has made a $436 million takeover bid for ASX-listed Astro Japan Property Trust's reported $1.1 billion property portfolio.

It is expected that Astro Group security holders will receive net consideration of approximately $7.18 per security as a result of the Blackstone Proposal in October 2017.

Astro Group Chairman Allen McDonald said the company was pleased to be able to put this proposal to their security holders.

"The Blackstone Proposal delivers Astro security holders with an asset premium that reflects the quality and scarcity of our underlying real estate portfolio, and net proceeds that provide cash liquidity at  a material premium to recent trading levels.”


Australian Financial Review said the bid was the second approach made for the trust this year after Astro Group rejected an offer in March from private equity company Lone Star Funds to acquire all its assets at their book value.

"The offer from Blackstone, (advised by Macquarie), for Astro (advised by Fort Street) comes as global private equity groups like KKR, Carlyle and Blackstone circle opportunities in the Japanese market with its economy expected to begin growing this year," the AFR said.

"Astro Japan, the former Babcock & Brown Japan Property Trust, is the last of the ASX-listed trusts with a Japanese portfolio after the Galileo Japan Trust delisted in November last year following the sale of its portfolio to a new Japanese REIT."Astro Group began life as Babcock & Brown Japan Trust, amassing 27 assets that were mostly located in central and greater Tokyo and some in regional cities such as Osaka and Fukuoka.

Blackstone and Spring Investment will now enter into new asset management negotiations.

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