Acquisition activity heats up in the listed sector

Acquisition activity in the listed sector has been strong in the past week with deals announced by SCA Property Group (ASX: SCP), Australian Unity Office Fund (ASX: AOF) and Asia Pacific Data Centres (ASX: AJD).

SCA Property Group announced that it will be purchasing a portfolio of ten sub regional and neighbourhood shopping centres from Vicinity Centres for $573M. The deal forms part of Vicinity’s intention to offload around $1 billion of its centres announced earlier in the year. SCA Property Group expects the acquisitions to be 5.0% accretive to earnings and increased its FY19 earnings guidance whilst also undertaking a capital raising to help fund the acquisition.

Australian Unity Office Fund also announced that it has received an indicative, non-binding offer from Starwood Capital Group to acquire all the units of AOF for $2.95 in cash, valuing AOF at around $480M. Starwood Capital Group is a private investment firm based in the US which manages excess of US$60B in AUM. AOF expects to sign a confidentiality agreement to grant Starwood access to undertake due diligence, with directors intending to unanimously recommend the offer in the absence of a higher offer.

The saga for Asia Pacific Data Centres appears to have finally reached an end with 360 Capital Group (ASX: TGP) reaching an agreement to sell its 67.3% stake to tenant NEXTDC Limited (ASX: NXT) at a price of $2.00 per unit in cash. The move will increase NXT’s holding to 96.5% and allow it to compulsorily acquire the remaining units of AJD.