Westfield Corporation is again in the takeover spotlight — this time as a suitor — after news that French mall owner Klepierre and The Netherland’s retail landlord Corio had agreed to a €7.2 billion ($10.3bn) merger.
The merged entity will have a gross asset value of more than €21bn, making it the second-largest mall owner in the world after Simon Property Group.
JPMorgan analyst Adam Fairfax said the broker had taken calls regarding whether Westfield might launch a counter bid.
“Naturally, Westfield Corporation rallied to new highs on this news, taking with it virtually every other A-REIT,” Mr Fairfax said.
He said the rally had taken the local property trust sector close to highs not seen since October 2008.
JPMorgan also noted increased interest in whether Stockland would return with a higher offer for Australand in light of low acceptances for Frasers Centrepoint’s cash bid for the company.
“I’ve been surprised by the number of questions I’ve received in the last day or two regarding whether I think Stockland might yet make a higher offer for Australand,” Mr Fairfax said. “I think the chance of this is nil, and itself fraught with danger.”
The Klepierre-Corio deal sparked a fresh round of speculation of more M&A activity in the Australian property trust sector.
Macquarie analyst Paul Checchin said demand for real estate globally could result in Investa Office Fund, GPT, CFS Retail and Woolworths’ spin-off SCA Property Trust becoming potential takeover targets.