It has quickly become one of the financial ‘soap operas’ of 2016 – the battle for control of GPT Metro Office Fund between Centuria Metropolitan REIT and Growthpoint Properties Australia.
Yesterday the GPT fund’s independent board backed the sweetened cash and scrip offer made by Centuria, which is now worth around $317 million.
This has now put pressure on the South African-backed Growthpoint Properties Australia to either top the revised Centuria offer, or walk away.
Growthpoint which is reviewing its offer, has yet to make a decision.
As usual, GPT Metro’s board said that in backing the higher Centuria offer, it was doing so subject to there being no superior bid; an independent expert; that the Centuria revised offer is fair and reasonable to GPT Metro unitholders (other than Centuria and Centuria Capital) and not withdrawing that recommendation.
Centuria Metropolitan REIT and Centuria Capital together hold a 16.1% stake in the GPT fund. The Centuria Metropolitan fund is run by Nick Collishaw, a well known property trust executive.
Mr Collishaw said the group was "delighted to receive a favourable response from the IBC recommending the Centuria takeover bid to GPT Metro unitholders".
GPT Metro last week also entered into a facilitation and property rights deed with Centuria Capital that includes a condition of Centuria reaching 50.1% of the target.
In consideration for GPT forgoing certain rights and providing certain services to Centuria, GPT will receive a fee of $9 million.
The improved Centuria revised offer follows talks and due diligence since Centuria’s initial proposal on May 23 and is now equal to $2.47 for each GPT Metro fund security.
That compares to the $2.40 a GPT Metro security equivalent offered by Growthpoint in its indicative and non-binding cash and scrip bid.
The battle for the fund was started by the South African-owned Growthpoint Properties last month, when it launched a non-binding indicative offer, but was then gazumped by the listed Centuria fund.
If successful, Centuria and GPT Metro will create a $900 million trust which will be the only listed trust focused on the suburban office sector.
GPT Metro owns six assets, at Olympic Park in Sydney, Brisbane, and at Hawthorn in Melbourne’s. Centuria owns 10 office and three industrial assets in Sydney, Brisbane, Canberra and Adelaide.
