The Irongate Group, the Sydney-based former Australian real estate arm of Investec Group, has received an offer from Australian real estate investment firm Charter Hall Group and Dutch pension fund manager PGGM to buy the company’s outstanding shares for A$1.29 billion ($925 million). , according to the Australian The listed company announced on Monday.
The non-binding, indicative offer of A$1.90 per share follows three consecutive bids since October by Sydney-listed alternative investment firm 360 Capital Group, Irongate’s largest shareholder with a 19.9% stake.
Irongate’s board rejected 360 Capital’s offers – for A$1.60, A$1.65 and A$1.72 per share respectively – because they do not adequately reflect the value of Irongate’s “high quality office and industrial real estate portfolio”, it said the Irongate announcements.
The partnership offer between Charter Hall and PGGM includes a letter of intent with 360 Capital which would allow the partnership to acquire 360 Capital’s interest in Irongate on the same terms at a price of A$1.90 per share.
Irongate’s board of directors is reviewing the proposal with the support of its advisors, the company said in a statement. A spokeswoman for Irongate did not respond to requests for comment.
According to Irongate’s website, the company owns 36 properties in Australia and New Zealand with a portfolio value of A$1.56 billion.
In Tuesday’s trading, Irongate shares ended flat at A$1.845 after rising 17.5% on Monday following Charter Hall-PGGM bid news.
PGGM managed €291 billion (US$329.5 billion) of long-term pension fund assets as of December 31.