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Blackstone sweetens offer for IOF and wins support

The battle to acquire Investa Office Fund (ASX: IOF) looks close to finalisation with Blackstone increasing it’s takeover offer for IOF to $5.3485 per unit (being $5.45 less a 10.15cpu distribution). The increase of $0.20 per unit was supported by the Investa Commercial Property Fund (ICPF), who had rejected the prior offer and campaigned for a higher price. ICPF owns 19.9973% of IOF and their support at the higher price provides an increased likelihood of Blackstone acquiring the requisite 75% acceptance for the scheme to proceed. The new offer by Blackstone represents a $120M increase on the price for IOF, to around $3.26B.

IOF is now looking to adjoin its planned securityholder vote on 29 August, with a new date set for 6 September whereby securityholders will be able to vote on the new offer. With the support of ~20% from ICPF, and an offer price which is closer to its NTA of $5.47, Blackstone looks well placed to win the necessary votes to acquire IOF.

ASX reporting season has concluded for the major property securities with results released from GDI Property Group (ASX: GDI), Centuria Metropolitan REIT (ASX: CMA), Centuria Industrial REIT (ASX: CIP), Convenience Retail REIT (ASX: CRR), Scentre Group (ASX: SCG), Arena REIT (ASX: ARF), Industria REIT (ASX: IDR), Charter Hall Group (ASX: CHC), Viva Energy REIT (ASX: VVR), Stockland (ASX: SGP), Garda Diversified Property (ASX: GDF), Cromwell Group (ASX: CMW) and Australian Unity Office Fund (ASX: AOF).