The sales process for Devine through investment bank Goldman Sachs may have fallen over but perhaps bankers are now exploring a “Plan B”.
This comes with rumours that the majority owner of Queensland-based residential developer CIMIC (formerly Leighton Holdings) may have been mulling a merger of Devine with its own real estate subsidiary, Leighton Properties. The speculation was hosed down by sources close to the company but it still leaves some guessing about other plans.
CIMIC’s property arm, which will likely lose the Leighton name following the recent company rebranding, was last year put on the block by its Spanish owners. Bank of America Merrill Lynch had the mandate for the sale.
There had been suggestions that an Asia suitor had been in talks to buy an entity comprising Devine and Leighton Properties’ residential properties.
Both Devine and Leighton Properties had attracted the attention of Singapore’s CDL Developments, and this has fuelled talk that CDL could be the suitor.
The idea being floated was that the remaining commercial assets controlled by Leighton Properties would be sold separately. However, a challenge to overcome by CIMIC was thought to be centred on leasing guarantees at its Kings Square office project in Perth.
A number of groups had been linked to the Goldman Sachs-run sale process, most recently private equity giant Proprium Capital Partners, which was being advised by Fort Street Advisors.
This article first appeared in The Australian Business Review.