Charter Hall with Dutch pension fund PGGM has signed a scheme implementation agreement to take over Irongate (IAP) for $1.3 billion.
If approved, the deal would see IAP major shareholder, 360 Capital Group, which controls a 19.9 per cent stake, walk away with three assets worth a total of $257 million:
- 38 Sydney Avenue, Forrest, ACT (valued at $81.7m);
- 34 Southgate Avenue, Cannon Hill, Queensland ($40m) and
- A half share in 510 Church Street, Cremorne, Victoria (pictured, top, $135m).
Charter Hall would hold a 12pc interest in the rest of the $1.6b portfolio.
It will also secure management rights for $5m.
PGGM will retain the balance of the properties, a mix of office, industrial and retail.
IAP is dual listed, in Australia and South Africa.
If unitholders vote in favour of the takeover, they would receive $1.90 per share in cash and keep a distribution of up to 4.67 cents per stapled security (story continues below).
Charter Hall, PGGM build relationship
Charter Hall and PGGM entered the race for IAP in January, following an unsuccessful takeover bid by 360 Capital Group last year.
The pair co-own other assets, including a Bowen Hills, Brisbane, industrial investment acquired for $60m last month.
“We are pleased to continue our partnership with PGGM and the expansion of our industrial and logistics mandate,” Charter Hall Group managing director and chief executive officer, David Harrison, said of the Irongate bid. “This transaction further demonstrates Charter Hall’s track record of structuring and executing…private transactions alongside our wholesale capital partners, following the successful acquisition of the ALE Property Group by Charter Hall Long WALE REIT and Hostplus in 2021″.
If the IAP takeover goes ahead, the fund manager will control assets worth nearly $8b.
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