Accor goes after its Mantra

Listed A-REITs
  • The Directors of Mantra Group (ASX: MTR) have unanimously supported a $1.2B takeover offer by Accor Hotels. The offer at $3.96 cash per share represents a 22.6% premium to MTR’s price and will establish Accor as the largest hotel operator in Australia with up to 400 sites.

  • Propertylink (ASX: PLG), have announced a $37.8M (or 5.6%) valuation increase of its portfolio as at 30 September 2017., resulting in an NTA of 93.7 cents per unit (87.3 cpu at 30 June 2017). The increase in valuation comes after both ESR and Centuria Capital Group (ASX: CNI) have taken substantial holdings in PLG. The Board of PLG have previously rejected CNI’s takeover proposal equivalent to 95 cpu. Centuria owns 17% of PLG and ESR own 19.9%. With ESR also owning 14.9% of CNI, the ball appears to be ESR’s court about its intentions for both PLG and CNI.

  • Folkestone (ASX: FLK) announced the acquisition of the Mercure Sydney International Airport Hotel for $76.4M. The acquisition is the largest single deal yet for Folkestone, with the property being launched under a new unlisted fund, the “Folkestone Sydney Airport Hotel Fund”. The 271-room hotel, will undergo extensive refurbishments which will be undertaken in 2018 with plans to strategically reposition the Hotel to drive occupancy and revenue growth. The Fund is estimating a 7% yield following the refurbishment with an equity IRR of 14.4% p.a.

  • Australian Unity Office Fund (ASX: AOF) have acquired 150 Charlotte St, Brisbane Qld for $105.75M on an initial passing yield of 6.7% and capitalisation rate of 6.0%. The office tower was sold by TrustCapital and is 100% occupied with a WALE of 5.7 years. AOF will fund the acquisition via a $50M equity raising (offered to existing investors on a 1 for 6.25 entitlement basis at a price of $2.23 per unit) plus an increase in its debt facility.