david harrison charter hall

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Property fund manager and developer Charter Hall has struck an agreement to purchase Folkestone, a smaller property fund manager.</strong></p><p>The $205 million deal was announced as both companies reported end of financial year earnings.</p><p>Charter Hall said the deal would expand its focus into social infrastructure and the early learning sector which is underpinned by a growing population, rising workforce participation and government funding.</p><p>“We see the Folkestone business model as consistent with our existing strategy,” Charter Hall chief executive David Harrison said.</p><p>The transaction with Folkestone will grow Charter Hall&#x27;s funds under management by $1.6 billion, boosting its fund management and development investment earnings.</p><p>“We are attracted to their leading position in the social infrastructure sector and the suite of listed and unlisted funds adds to our diversity of sources of equity, while their origination capability is expected to generate property investments for the expanded list of managed funds,” Harrison said.</p><p>Charter Hall reported its 2018 financial results, seeing a 16.2 per cent lift in operating earnings of $175.8 million on the previous year.</p><p>“I am pleased to deliver to our investors a 5 per cent increase in operating earnings per security to 37.7 cents and a full year distribution per security of 31.8 cents, an increase of 6 per cent,” Harrison said.</p><p>Folkestone managing director Greg Paramor said the deal was an excellent fit of two companies.</p><p>“Folkestone brings significant expertise and skills in the fields of social infrastructure and early learning,” Paramor said.</p><p>Folkestone has a series of listed, unlisted and private funds and has a market capitalisation of around $164 million.</p><p>“Folkestone’s other existing unlisted funds also complement Charter Hall’s existing platform, providing opportunities for Charter Hall to either grow these funds, or create new fund initiatives leveraging Folkestone’s extensive private client network and Charter Hall’s extensive distribution network,” Paramor said.</p><p>In 2010 Paramor, along with Equity Real Estate Partners, took over Folkestone and quickly transformed the company into an elite fund manager.</p><p>Folkestone shareholders will now be entitled to a $0.03 per share ordinary dividend for the 2018 financial year.</p><p>Once the deal is finalised, Folkestone&#x27;s Greg Paramor, a former Mirvac executive, will become a non-executive independent director of Charter Hall Group.</p><p>Last year, Folkestone entered into a joint venture with Melbourne-based ID Land to develop 64 townhouses in Melbourne, known as The Walter valued at $40 million.</p></div></div></div></div></div>

Property fund manager and developer Charter Hall has struck an agreement to purchase Folkestone, a smaller property fund management platform.

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<p>US-based investment manager Barings has snapped up Australian real estate platform Altis Property Partners.</p><p>Sydney-based Altis Property Partners has acquired and developed more than $8 billion of real estate and currently holds a $6-billion portfolio of mainly office, industrial, retail and residential investments.</p><p>Founded in 2008 by property veterans Paul Notaras, Shaun Hannah, Alastair Wright and Chris Packett, privately owned real estate investment house Altis has built extensive experience and expertise across the risk spectrum including core, value-add and development.&nbsp;</p><p>Last financial year the group generated almost $100 million of income and access to a local investor base of institutional and high net worth investors.</p><p>Altis Property Partners executive director Alastair Wright said its decision to join Barings had been made due to the company’s similar team-based approach, culture and investment philosophy.&nbsp;</p><p>Barings is one of the global giants of investment management with a near $502-billion ($US350-billion) global empire, and it has the heft to take on big global players such as Brookfield and Blackstone as it chases local deals.</p><p>The global investment manager has more than 200 investment professionals across 16 offices in nine countries and a major presence in the US and Europe.</p><p>Its global real estate platform handles real estate debt and equity of $69 billion ($US48.9 billion).</p><p>Barings chief executive Mike Freno said the acquisition would strengthen its local investment capabilities in Australia with it actively looking to expand its footprint in the region.</p><p>“Asia Pacific makes up approximately a third of Barings’ third-party assets under management and is expected to be a key driver of growth for us,” Freno said.&nbsp;</p><p>“Barings has successfully led private credit and real estate debt investments in Australia and we’re confident Altis will help us broaden our investment capabilities in the region.”</p><p>Upon closing, Barings will absorb 44 Altis directors and staff with expertise in real estate equity and 32 assets—primarily focused on value-add strategies.</p><p>Altis has been busy ahead of the deal. In June, it set up a <a data-mce-href="https://www.theurbandeveloper.com/articles/aware-super-real-estate-michelle-mcnally" href="https://www.theurbandeveloper.com/articles/aware-super-real-estate-michelle-mcnally" target="_blank" rel="noopener">new property platform with Aware Super</a>, which oversees the fund’s directly owned local build-to-rent, industrial and office holdings.</p><p>Late last year, Aware and Altis purchased the former <a data-mce-href="https://www.theurbandeveloper.com/articles/abandoned-hotel-to-make-way-for-build-to-rent" href="https://www.theurbandeveloper.com/articles/abandoned-hotel-to-make-way-for-build-to-rent" target="_blank" rel="noopener">Bayview Hotel on Queens Road in Melbourne’s St Kilda Road precinct</a> in a $70-million-plus acquisition where they intend to create more than 300 build-to-rent units.</p><p>Before striking the partnership Altis had already partnered with Aware on a $300-million housing development in Liverpool in Greater Western Sydney as well as on a number of industrial projects.</p>

US-based investment manager Barings has snapped up Australian real estate platform Altis Property Partners...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Cromwell has issued its shareholders with a swift “take no action” direction in response to a part takeover bid from its largest shareholder, the Singapore-listed ARA Asset Management.</p><p>ARA’s $520 million proportional bid represents a 29 per cent buy-out of Cromwell at 90 cents per share. ARA said that the bid represents a premium of 9.8 cents to Cromwell’s 30-day volume-weighted average share price of 82 cents. </p><p>ARA currently holds 24 per cent of Cromwell’s securities. The bid, for which ARA has received FIRB approval, would lift its stake in Cromwell to about 46 per cent with creep provisions allowing it to close in on 50 per cent before the year is out.</p><p>ARA chief executive John Lim said that Cromwell has left the S$88 billion asset fund manager with “no choice” but to pursue a takeover.</p><p> “We seek change based on our strong belief that the existing Cromwell strategy is failing and exposing our investment to unacceptable risks,” Lim said.</p><p>Lim, and ARA’s Australian senior management, has consistently agitated for change at Cromwell, criticising the company’s corporate governance, financial performance and its European acquisition strategy—in particular Cromwell’s $1 billion <a href="https://theurbandeveloper.com/articles/cromwell-property-group-european-pipeline">purchase</a> of a portfolio of Polish shopping centres.</p><p>Related: <a href="https://theurbandeveloper.com/articles/cromwell-gary-weiss-ara">Cromwell Shareholders Vote Down Weiss Ascendancy</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/dd015417-a93a-4a0c-a030-57ff7f0fb832.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ ARA has made two failed bids to elevate activist investor Gary Weiss to Cromwell&#x27;s board. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Lim said that ARA is concerned that Cromwell may look to pursue an equity raising at a discount to ARA’s 90cps offer. Cromwell chief executive Paul Weightman told the <em>Financial Review</em> in May that the group was not considering raising capital, despite concerns about negative asset revaluations and the level of gearing across the group’s balance sheet. </p><p>In an update to the ASX in June, Cromwell said that its gearing remains well within its debt covenant limits at 40 per cent. </p><p>The bitter, very <a href="https://theurbandeveloper.com/articles/cromwell-gary-weiss-ara">public</a>, fallout between the Brisbane-based property fund and its largest shareholder kicked off in mid-2019 after Cromwell blocked ARA’s bid for stock in a $375 million capital raising.</p><p>The dilution of ARA’s shares in Cromwell was followed by the <a href="https://theurbandeveloper.com/articles/cromwell-gary-weiss-ara">narrow rejection</a> of activist investor Gary Weiss from its board, after which Cromwell began <a href="https://www.cromwellpropertygroup.com/egm">issuing</a> missives to shareholders asking for help to “protect” it from an ARA “takeover by stealth”. </p><p>ARA is receiving legal advice from Arnold Bloch Leibler and financial advice from Moelis and Credit Suisse. </p><p>In response to ARA’s bid, Cromwell advised its shareholders to take no action, noting the “unsolicited and opportunistic nature” of ARA’s proportional offer. </p><p>Cromwell said it will respond once it has evaluated and assessed the terms of ARA’s offer.</p><p>Cromwell closed 8 per cent higher at 94 cents on Tuesday. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

Cromwell has issued its shareholders with a swift “take no action” direction in response to the latest takeover bid from its largest shareholder. 

Concord Hospital redevelopment for Roberts Pizzarotti

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Roberts Co Group has acquired the remaining 50 per cent share of Roberts Pizzarotti from the <a href="https://theurbandeveloper.com/articles/ex-multiplex-scion-joins-with-construction-giant-for-new-firm">Impresa Pizzarotti Group</a> to become wholly Australian owned.</p><p>After just four years in the construction industry the privately-owned business has gone from strength to strength with big ticket projects including <a href="https://theurbandeveloper.com/articles/cbre-north-sydney">Zurich Tower</a>, the North Shore Health Hub and the $341 million <a href="https://theurbandeveloper.com/articles/roberts-pizzarotti-to-deliver-341m-concord-hospital-redevelopment">Concord Hospital</a> redevelopment currently under way. </p><p>Roberts Co chief executive Alison Mirams said it was “business as usual” for the boutique tier one construction firm.</p><p>“We feel lucky to now be fully Australian owned ... we had a company that had two shareholders and we now have one shareholder, it’s business as usual,” Mirams said.</p><p>“We have $650 million in projects, 140 people on staff and our turnover will be $400 million. We’ve grown rapidly but in a really careful way.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/d66e9f69-92f0-41af-82db-e3489410ca3a.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Alison Mirams, CEO of Roberts Co, formerly Roberts Pizzarotti.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“If you look at how many overseas contractors have come over here and struggled. Pizzarotti was guided by Andrew Roberts and the executive team, and our processes and procedures. </p><p>“There were no Italian nationals in the team, there’s no personnel changes, and the financial position of the company remains the same.</p><p>Mirams said the company has been heavily focused on improving the industry. </p><p>“The better you make the industry, the better it is for everyone,” she said.</p><p>“We have looked at the construction industry and how we can improve it … particularly with regards to mental health and wellbeing.</p><p>“Our Concord Hospital redevelopment project has been part of a five-day work week study. I’m hoping when we have (the results of an interim report) that I am going to have hard data and we can start to make changes.”</p><p>The UNSW two-year study is looking at whether a five-day work week, instead of the six-day industry standard, is beneficial to the mental health and wellbeing of construction workers. </p><p>Mirams said Covid had heavily impacted the industry, but like many other sectors they had <a href="https://theurbandeveloper.com/articles/lockdown-opens-door-for-technology-adoption-in-construction">innovated and adapted</a> to roll out sanitisation on site and allow for social distancing. </p><p>“Covid has proved that we can work flexibly and be onsite. I’m hoping it becomes the new normal.”</p></div></div></div></div></div>

Roberts Co Buys Out Italian Shareholder to Become Australian-owned

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>It was a date with destiny says MaxCap co-founder Brae Sokolski of the game-changing partnership deal the leading Australian non-bank lender has inked with US investment giant Apollo Global Management.</p><p>Touted as the biggest ever deal for Australia’s non-bank sector, both numerically and in terms of its potential future impact on the nation&#x27;s evolving lending landscape, it is the fulfilment of a long-planned strategic milestone for MaxCap.</p><p>Sokolski and co-founder Wayne Lasky have signed over a 50 per cent equity stake in their unlisted commercial real estate debt and investment company to global goliath Apollo, which has $472 billion in assets under management.</p><p>According to Sokolski, however, it was never just about finding a partner willing to pay the right price.</p><p>&quot;It was legitimately about finding the right partner for the long-term benefit of the business and to achieve the bold ambitions of Wayne and myself,&quot; he told <em>The Urban Developer.</em></p><p>&quot;So, we threw the net far and wide.&quot;</p><p>The formal process began about 12 months ago with a call for expressions of interest that attracted huge interest and approaches from a who’s who list of 60 global players.</p><p>“But it’s not something that happened overnight,” Sokolski said. </p><p>“We’ve always had the intent to bring in a strategic partner. This has been 15 years in the making ... we were just waiting for the right time.</p><p>“It was an incredibly intense process and harder in the context of Covid.</p><p>“It’s like dating online. It’s not quite the same as being face to face so it made it more difficult but it was evident really early on that they [Apollo] just got Wayne and I as individuals, and there was this strong mutual respect immediately between the parties and we just liked them as people.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/e0d407a4-a765-4e89-8ba3-5de85d11d903.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Brae Sokolski has signed over a 50 per cent stake in the company he co-founded with partner Wayne Lasky.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Sokolski said interest came mainly from “very large global fund management businesses that saw the Australian commercial real estate market as particularly attractive and MaxCap as a really compelling vehicle for them to deploy capital”.</p><p>“We did have a shortlist and, honestly, we were incredibly flattered by that shortlist,” he said.</p><p>“There were some other hugely successful globally significant organisations in that list ... but in our mind Apollo were always a standout, not just by virtue of their size and scale but also just from a chemistry perspective, and them genuinely buying into the culture of MaxCap and the way Wayne and I run the business and want to run the business in the future.</p><p>&quot;We didn’t want to be just another acquisition for a large multinational that wouldn’t really matter whether it worked or not.</p><p>&quot;It had to be more than just about the investment in the business and the upside on the business growth.</p><p>“When you’re bringing in a partner and you’re wanting to stay as heavily involved as we are ... more critical than any other consideration is ensuring that you actually get on and like the people that you’re partnering with.</p><p>“Essentially, it’s the same as making a decision about any important relationship in your life.”</p><p>Not only is MaxCap’s partnership coup a major boost to the Melbourne-based company’s value but also to its firepower in taking on the major banks in Australia’s $300 billion commercial real estate lending market.</p><p>Sokolski said there had been a tectonic shift in the sector in recent years and the Apollo partnership was &quot;a harbinger for more institutional capital flowing into the Australian marketplace and a win-win for everyone&quot;.</p><p>“This is going to be a game-changer not just for our business but for the entire industry,” he said.</p><p>“Wayne and I have a very deliberate strategy on where we want MaxCap to be in the next five years and this is an enabler.</p><p>“We legitimately want to be seen as the number one lender in real estate in this country and take the banks head-on. We can’t do that alone.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/33264d0c-06d7-4346-ac6a-f5391b709c46.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ MaxCap is expanding into Sydney&#x27;s notoriously impenetrable market. Image: Chateau, Castle Hill.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“At the moment we’re playing an important role and filling a niche but there’s a lot of other areas in real estate debt and investment that we want to target, particularly when you look at investment loans, lower-yielding opportunities for core and core-plus assets that we don’t have the capital to meet demand for,” Sokolski said.</p><p>“It’s about being the full solution real estate lender across the cycle, across the capital stack, across all geographies, across all asset classes.</p><p>“Apollo bring the capital to enable that ... and they see MaxCap as being a ready-made vehicle for them to deploy capital and that’s why it’s such a mutually beneficial relationship and there’s such great synergies between the organisations.</p><p>&quot;It&#x27;s a very logical marriage between the two companies—us having such a strong frontline and volume of deal flow, and them having an incredibly significant war chest of capital.</p><p>“They have what we don’t have and we have what they don’t have. So, we are perfectly aligned in that regard.”</p><p>Apollo co-president Scott Kleinman said Australia and its partnership with MaxCap offered significant long-term opportunities for the New York-listed company.</p><p>“This is an exciting opportunity to expand our origination capabilities, support the strong management team and together leverage our highly complementary platforms and expertise,” he said.</p><p>Apollo’s real estate senior partner, Philip Mintz, said MaxCap’s strong track record of origination, its market positioning in Australia and New Zealand, and its performance made them &quot;a partner of choice&quot; for investors and borrowers alike.</p><p>“Together, we see significant opportunity ahead as the non-bank real estate credit market continues to grow in the region,” he said.</p></div></div></div></div></div>

The chemistry was right for MaxCap and its new global strategic partner to seal the Australian non-bank lending sector's biggest ever deal...

Crown Resorts Logo Building

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Crown Resorts has knocked back a $8.4-billion takeover bid from US private equity firm Blackstone.</p><p>The Crown board, led by executive chairman Helen Coonan, on Monday unanimously concluded Blackstone’s offer was inadequate after taking “considered feedback from shareholders” and advice from financial and legal advisers.</p><p>Blackstone, which already has a 10 per cent holding in the casino giant, <a href="https://www.theurbandeveloper.com/articles/blackstone-crown-resorts-takeover">offered to acquire all of the shares in Crown</a> through a scheme of arrangement in March at an “indicative price” of $12.35  per share.</p><p>The New York-based equity firm, which manages upwards of $800 billion of assets globally, specialises in alternative investments.</p><p>The $12.35 per share offer was increased from Blackstone’s initial $11.85 per share offer earlier in the month.</p><p>“The board has unanimously concluded that the Revised Proposal undervalues Crown and is not in the best interests of Crown’s shareholders,” the company said in a statement to the ASX.</p><p>“In coming to this conclusion, the board considered a range of scenarios given the regulatory inquiries in relation to Crown which are under way.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/9e049845-1516-452c-b31c-273d6a789a36.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Blackstone made the offer in late March, just two days before Crown faced a royal commission in Victoria.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Blackstone’s timeline for gaining regulatory approval from the NSW gaming regulator also played into the board’s decision to reject the offer.</p><p>In March, the NSW gambling regulator warned Blackstone faced an “exhaustive” probity process, stating it would take its time to carefully consider the findings from the 768-word Bergin report which found Crown was unfit to operate a casino in the state.</p><p>“Despite Blackstone’s modification of these conditions, the board believes there is significant uncertainty as to the timing and outcome of the regulatory approval processes,” the company said.</p><p>“As a result, the conditions of the revised proposal as currently understood present an unacceptable level of regulatory uncertainty for Crown shareholders.” </p><p>Bergin’s investigation found that Crown “enabled and facilitated” money laundering through bank accounts tied to its Perth and Melbourne casinos for at least five years before 2019.</p><p>It also found Crown partnered with junket operators linked to organised crime and admonished the company for failing to protect its 19 China-based staff from arrest in 2016 for illegally promoting gambling trips.</p><p>The casino operator is also facing simultaneous royal commissions in Victoria and Western Australia over the firm’s suitability to hold its casino licences in those states.</p><p>Victoria’s hearings, which commenced on Monday, will run for six weeks while Crown’s executives are expected to take the stand in WA in the coming weeks.</p><p>In a separate statement Crown said the board had yet to form a view on a $12 billion <a href="https://www.theurbandeveloper.com/articles/the-star-blackstone-crown-resorts-merger">merger proposal</a> from rival hotel operator The Star Entertainment Group.</p><p>The rival casino group proposed to merge with Crown using a mix of scrip and cash, worth $11.28 to $11.59, depending on the balance between these elements.</p><p>Crown Resorts told the market it was still assessing the merger proposal and “has requested Star to provide certain information to allow the Crown Board to better understand various preliminary matters.”</p><p>The potential merger would likely need approval from the Australian Competition and Consumer Commission and if realised would create a gambling and hospitality giant spanning seven properties in four states. </p></div></div></div></div></div>

  Crown Resorts has rejected an $8.4-billion takeover bid from US private equity firm Blackstone...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Abacus Property Group and Charter Hall have taken a 19.9 per cent stake in ASX-listed Australian Unity Office Fund.</p><p>The pair said they had outlaid $95.6 million for the stake at a price of $2.95 per unit, a 6.1 per cent premium to the company’s last closing share price of $2.78.</p><p>Buying up the shares in the target on behalf of the consortium by Charter Hall&#x27;s broker JPMorgan.</p><p>Led by former Charter Hall executive Steven Sewell, <a href="https://theurbandeveloper.com/tags/Abacus%20Property%20Group">Abacus</a>, is shifting into longer term institutional real estate opportunities as it looks to grow its of $2.3 billion market capitalisation while <a href="https://theurbandeveloper.com/tags/Charter%20Hall">Charter Hall</a> manages $28.4 billion of long leased property across the office, retail, industrial and social infrastructure sectors.</p><p>The Australian Unity-managed fund, which holds a $641 million-plus portfolio of office properties located across Australian metropolitan and CBD markets, will also be subject to a takeover bid. </p><p>The substantial unit-holder position will now enable a framework agreement under which Abacus and Charter Hall would co-operate for the purposes of pursuing a takeover transaction.</p><p>The consortium said it would “seek to initiate” discussions with Australian Unity regarding a potential transaction. </p><p><a href="https://theurbandeveloper.com/tags/Australian%20Unity">Australian Unity Office Fund,</a> which holds a market value of $600 million-plus, invests in a diversified portfolio of nine office properties located across Australia, owning office buildings in South Australia, NSW, Queensland, Victoria and the ACT.</p><p>Abacus and Charter Hall said they were “very familiar” with the Australian Unity property portfolio, and the sub-markets in which the properties sit, consistent with the pairs “investment objectives”.</p><p>Charter Hall’s <a href="https://theurbandeveloper.com/articles/charter-hall-acquires-folkestone-in-205-million-bid-">last takeover of a listed company</a> was Folkestone, a small Sydney-based property fund manager, in August last year.</p><p>Charter Hall Group paid $205 million cash in a seamless merger and acquisition deal that was done via a scheme of arrangement at a 25 per cent premium to the last close with the help of law firm Allens.</p><p>The move comes only six months after it rejected a $480 million bid <a href="https://theurbandeveloper.com/articles/starwood-makes-480m-takeover-bid-for-australian-unity-office-fund">from US investment house Starwood</a>, which valued the company at $2.87 a share. AOF gave US-listed Starwood a look at its books, before rejecting its final offer.</p></div></div></div></div></div>

Abacus Property Group and Charter Hall have taken a 19.9 per cent stake in ASX-listed Australian Unity Office Fund.

AMP’s new Quay Quarter Tower at Circular Quay

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Investors in the $5-billion AMP Capital Diversified Property Fund have voted to merge with a $10.1-billion wholesale fund run by ASX-listed Dexus.</p><p>Dexus on Tuesday succeeded in a push to merge with the AMP Capital Diversified Property Fund (ADPF), after unit-holders of both groups voted in favour of the merger, with the finally tally well exceeding the required 75 per cent.</p><p>The vote came after an implementation agreement between Dexus and and ADPF, which was <a href="https://theurbandeveloper.com/articles/dexus-amp-merger">signed in early-March</a>, to combine the two entities under a stapling agreement that included exclusivity arrangements.</p><p>The bid has been in the works since last year when Dexus stepped forward to take over running ADPF amid the ongoing turmoil across the broader AMP business.</p><p>It followed AMP chairman Debra Hazelton launching a “portfolio review” sales process for the company after taking the chair from David Murray.</p><p>The Dexus bid initially was met with push-back by AMP which moved quickly to retain control of the property fund, offering cuts to management fees and a plan for AMP to buy assets out of the vehicle to help fund redemptions.</p><p>AMP Capital head of real estate Kylie O’Connor said the company, which had also been in merger discussions with US investment manager Ares, provided an alternative proposal to its unit-holders, but the independent board committee recommended the Dexus proposal.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4fff8523-3e33-4c90-af1c-2f5539345706.png" width="650"/></picture><div><span style="align-content:center;opacity:0.8">▲ AMP Capital head of real estate Kylie O’Connor.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“While AMP Capital submitted a compelling alternate proposal with significant capital support, we respect our investors’ decision to seek the scale that the merged fund will provide,” O’Connor said.</p><p>“Real estate remains an integral part of AMP Capital’s Private Markets business, which is about to embark on a separation from AMP Limited.”</p><p>Dexus chief executive Darren Steinberg said the approved merger would help the company expand its own funds management business.</p><p>“Both sets of unit-holders have signalled their confidence in our abilities through their support of the merger proposal and welcome the ADPF unitholders onto our platform,” Steinberg said.</p><p>“We will continue to execute on the Fund’s investment strategy as we integrate the ADPF assets to drive performance and deliver further economies of scale from a management, procurement and leasing perspective.”</p><p>ADPF mainly invests in the office, retail and industrial sectors, and holds a diverse mix of trophy assets nationally.</p><p>Its portfolio includes a 50 per cent stake in the $2-billion Quay Quarter Tower currently under construction in Sydney’s Circular Quay and the Westfield Warringah Mall shopping centre on Sydney’s northern beaches.</p><p>ADPF also holds a 50 per cent stake in the Westfield Booragoon Shopping Centre in Perth and shares interests with Dexus in 309-321 Kent Street in Sydney.</p><p>ADPF includes minority investments in two other AMP Capital managed wholesale funds—the AMP Capital Wholesale Office Fund (AWOF) and the AMP Capital Shopping Centre Fund (ASCF).</p><p>The vote could play into the future of the larger AMP Capital Wholesale Office Fund, which is assessing its management. </p><p>That fund has set up an advisory committee with advisory house Jarden Australia heading the process.</p></div></div></div></div></div>

Investors in the $5 billion AMP Capital Diversified Property Fund have voted to merge with a wholesale fund run by Dexus... 

Aqualand McGrath Aqualand raises stake in McGrath, tests takeover threshold


<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Chinese-backed developer Aqualand has raised its stake in ASX-listed real estate agency McGrath, bringing its holding in the company to <a href="https://www.asx.com.au/asxpdf/20191028/pdf/449z4sc0s32mnx.pdf">18.53 per cent</a>.</p><p>The move to secure further equity in the <a href="https://theurbandeveloper.com/articles/mcgrath-deepens-loss-amid-housing-slowdown">embattled real estate agency</a> manoeuvres the developer closer to a the ASX takeover threshold of 20 per cent.</p><p>Aqualand bought its initial shares when the shares were trading at around $0.425 per share.</p><p>The increase in its stake follows the Aqualand&#x27;s acquisition of an initial 15 per cent in McGrath in June <a href="https://theurbandeveloper.com/articles/aqualand-takes-strategic-15-stake-in-mcgrath-">last year</a>. Aqualand currently has a director on the McGrath board, Wayne Mo.</p><p>The initial capture was made through Aqualand&#x27;s investment arm AL Capital making the company the second-largest shareholder, behind the real estate agency&#x27;s founder John McGrath, who holds a 22 percent stake.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/6342931d-5ae8-4b85-827e-a01874c9a3a2.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ According to ASX rules, any interests in a listed company of more than 20 per cent would trigger a takeover bid.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Aqualand is a subsidiary of Shanghai-based developer Shenglong, which is chaired by the father of Aqualand’s managing director Jim Lin. </p><p>The company was established in 2014 in Australia and has a collective development value of $5 billion over a portfolio of 18 sites.</p><p>The developers high profile developments include the the $173 million <a href="https://theurbandeveloper.com/articles/aqualand-lists-prime-darling-island-road-development-sites-for-sale">REVY apartments</a> at Pyrmont and the <a href="https://theurbandeveloper.com/articles/aqualand-forges-forward-with-industry-heavyweights">Blue residential project</a> at Lavender Bay valued at $418 million.</p><p>Aqualand, along with Grocon and Scentre Group, was <a href="https://theurbandeveloper.com/articles/oxford-properties-grocon-team-up-on-barangaroo-">selected</a> to deliver the $2.6 billion <a href="https://theurbandeveloper.com/articles/grocon-aqualand-and-scentre-announced-as-developers-of-final-piece-of-barangaroo">Central Barangaroo</a> precinct.</p><p>Last month Aqualand secured the development stake of Barangaroo Central from Oxford Properties.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>ASX-listed real estate agency McGrath has experienced a trying year struggling to lift the company&#x27;s performance amid the <a href="https://theurbandeveloper.com/articles/house-prices-will-fall-only-3pc-from-current-levels">housing downturn</a> that has flummoxed the real estate agency industry over the last two years. </p><p>Despite its poor performance since the company floated in 2015, most of the company&#x27;s sunk costs have already been accounted for. </p><p>But McGrath has continued to run into weak trading conditions, creating new challenges fuelled by weak sales commissions.</p><p>Investor reaction to the merger news was positive with the share price up 6.9 per cent to 23 cents.</p></div></div></div></div></div>

Aqualand has raised its stake in ASX-listed real estate agency McGrath, bringing its holding in the company to 18.53 per cent.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Charter Hall has sold out of its investment in industrial property developer Foundation of Investors of Commercial and Industrial Property (CIP) after fully integrating its development capability in house. </strong></p><p>Pan-Asian logistics real estate platform ESR acquired the half stake, signalling a further push into the Australian market after taking a 14.9 per cent stake in Centuria and an 18.06 per cent stake in Propertylink over a two-week period last year. </p><p>The 50 per cent stake realises an enterprise value of $102.5 million for Charter Hall, delivering a $9.5 million premium to its book value.</p><p>Ex-Goodman Group executive director Philip Pearce has been appointed chief executive of ESR Australia.  </p><p>“The launch of ESR Australia underlines ESR’s commitment to a long-term presence in Australia,” Pearce said. </p><p>“[The] acquisition of CIP creates a strong foundation for our local business. CIP has a highly-experienced management team with a track record of delivering results, all of whom will remain in the business.”</p><p>Related: <a href="https://theurbandeveloper.com/articles/what-are-the-driving-forces-behind-the-industrial-real-estate-boom">What Are the Driving Forces Behind the Industrial Real Estate Boom?</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/432524e3-3ac0-419f-9727-be3f5d6d5a03.png" width="1115"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Charter Hall managing director David Harrison said the partnership has delivered an annual 10 per cent average cash franked dividend to shareholders. </p><p>“The partnership has also contributed over $1 billion of pre-leased investments contributing to our now $6 billion of industrial and logistics investment assets, together with a further $1.5 billion development pipeline. </p><p>“The partnership has delivered high quality pre-leased industrial investments to major tenant customers such as Australia Post, VW, Ceva, AHG, Coles, Target, Reject Shop, Couriers Please and many others, with a total of 30 pre-leased industrial investments secured.”</p><p>Charter Hall has 24 industrial projects under construction with its in-house development arm. </p><p>On Wednesday, the fund manager announced that two of its industrial funds had <a href="https://theurbandeveloper.com/articles/charter-hall-snaps-up-sydney-logistics-centre-from-frasers-for-90m-">snapped up a purpose-built Coles distribution centre</a> in Sydney’s south west. </p><p>The CIP transaction has been approved by the Foreign Investment Review Board and is expected to settle this month. </p><p><em>Main image: ESR logistics centre in Guangdong Province, China.</em></p><p>, </p></div></div></div></div></div>

Pan-Asian logistics real estate platform ESR has acquired a 50% stake in CIP from Charter Hall.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Pan-Asian logistics platform ESR has launched a $693 million takeover play for Propertylink, offering $1.15 per share for the ASX-listed investment firm.</strong></p><p>The offer represents a 9.5 per cent premium to Propertylink’s last closing price and a 32.9 per cent premium to the price of Propertylink stocks prior to its <a href="https://theurbandeveloper.com/articles/propertylink-makes-move-on-centuria-industrial-reit-sells-north-sydney-tower-">play for Centuria Industrial REIT last week</a>.</p><p>Propertylink seized a 12.2 per cent stake in Centuria Industrial REIT (CIP), which controls 39 properties across Australia worth more than $1 billion. </p><p>ESR is currently Propertylink’s largest shareholder, holding a 19.9 per cent stake.</p><p>Credit Suisse is advising ESR on the indicative bid for Propertylink.</p><p>ESR’s play is conditional upon Propertylink’s bid for Centuria Industrial REIT not proceeding. ESR said that the Centuria Industrial proposal is not in the best interests of Propertylink securityholders.</p><p>Related: <a href="https://theurbandeveloper.com/articles/esr-buys-half-stake-in-industrial-developer-from-charter-hall">ESR Buys Australian Developer for $100m</a></p><p>“ESR considers that it would be appropriate, and in the best interests of current PLG securityholders, for Propertylink (PLG) to cease to pursue the CIP Proposal and engage with ESR on our Indicative Proposal.”</p><p>ESR’s current assets under management are valued at US$13 billion ($A17.8 billion). </p><p>Ex-Goodman Group executive director Philip Pearce was recently appointed chief executive of ESR Australia.</p></div></div></div>

Pan-Asian logistics platformESR has launched a $693 million takeover play for Propertylink, offering $1.15 per share for the ASX-listed investment fir

AOF owns 30 Pirie St Adelaide

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>US funds giant Starwood Capital Group commenced an off-market takeover of the Australian Unity Office Fund on Wednesday.</p><p>The US investment house made a conditional $485 million offer on all outstanding units in ASX-listed Australian Unity Office Fund. </p><p>Trade on the targeted fund paused at 11am on Thursday as Starwood Capital Group announced the all-cash, off-market takeover.</p><p>Starwood associates then purchased 18,270,457 securities, becoming a substantial holder with a voting power of 11.22 per cent from 162,831,952 units.</p><p>Following the sale, stocks jumped to $3.00 close to their year high of $3.04 on 24 October 2019. </p><p>During pre-bid agreements investors representing 16.7 per cent of AOF units indicated their support for the offer by entering into pre-bid agreements with Starwood.</p><p>Starwood offered $2.98 for per unit which was worth $2.91 at close of business the previous day.</p><p>The offer price represented a premium of 6.8 per cent to AOF’s NTA as at 30 June 2019 of $2.79 per unit.</p><p>Related: <a href="https://theurbandeveloper.com/articles/australian-unity-raises-291m-for-healthcare-facilities">Australian Unity Raises $291m for Healthcare Property</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/94273b15-19b6-4921-b36f-03a6fcd70c7d.jpg" width="664"/></picture><div><span style="align-content:center;opacity:0.8">▲ Australian Unity Office Fund owns 241 Adelaide Street, Brisbane and eight other office buildings.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>This was not the first time Starwood tried to buy the Australian Unity Office Fund. In 2018 they made four attempts including a <a href="https://theurbandeveloper.com/articles/starwood-makes-480m-takeover-bid-for-australian-unity-office-fund">$480 million unsolicited bid</a> at $2.95 per unit.</p><p>Six months later Abacus Property Group and Charter Hall <a href="https://theurbandeveloper.com/articles/abacus-charter-hall-buy-20pc-of-australian-unity-">took 19.9 per cent stake</a> in ASX-listed Australian Unity Office Fund—paying $95.6 million for the stake at a price of $2.95 per unit—they also made two failed take over attempts at $2.95 and $3.04 per share.</p><p>Starwood senior managing director and global head of real estate acquisitions Jeffrey Dishner said they believed their offer represented an attractive opportunity for all unit holders to realise liquidity at a certain cash value.</p><p>“The offer price also represents a premium to the current trading levels and NTA,” he said.</p><p>“We look forward to engaging with all stakeholders regarding the offer as we work to successfully complete the transaction.”</p><p>Starwood Global Opportunity Fund XI is a discretionary fund with a total committed capital of approximately US$7.55bn and sufficient undrawn capital to fund the offer.</p><p>The Australian Office Fund REIT owns had a property portfolio across Australia with nine offices valued at $668.4 million as of 30 June 2019.</p></div></div></div></div></div>

Trade paused on Australian Unity Office Fund as Starwood Capital Group announced an all-cash, off-market takeover.

MERGERS AND ACQUISITIONS