Stockland has accepted the Frasers Centrepoint takeover offer for its stake in Australand, pocketing a capital profit of around $80 million after earlier losing the bidding war for the target.
Singapore's Frasers took control of Australand last week, securing a 56.8 per cent stake in the target just two hours before the offer closed. Only 24 hours before the offer was set to lapse, Frasers had only 28.65 per cent of Australand shares.
The offer was extended for two weeks, with all conditions removed.
Frasers' $2.6 billion bid, worth $4.48 per share plus accrued distribution, trumped an earlier $2.5bn offer from Stockland.
Stockland held a relevant interest in 113 million Australand shares, bought at an average price of $3.78 each.
Stockland managing director Mark Steinert said the group would reinvest the profit prudently into its growth strategy.
"We have been disciplined with our investment in Australand with a clear strategic intent and view of value," Mr Steinert said.
"We will accelerate our expansion into medium density residential and mixed use development, grow our logistics and business parks capabilities, invest in community and our people and accelerate planned system and process enhancements."
Australand will be delisted from the Australian Securities Exchange after the close of trade on August 21.