The rash of takeovers in the real estate investment trust sector is being balanced by a run of new high-yielding floats.
While Australand Property Group will soon disappear from the Australian Stock Exchange, following the close of Frasers Centrepoint’s successful $2.6 billion takeover, two small office funds and a two retirement funds are in the offering.
Singaporean giant Frasers reported yesterday that it had received acceptances equivalent to 98.39 per cent of the shares in Australand. Frasers trumped a rival offer from Stockland to take Australand with an all-cash offer of $4.48 per share.
Stockland later sold its $450m stake into the Frasers offer, netting an $80m profit on the transaction. It has since been linked to a play for Leighton Properties, which is seen as a mainly residential development business.
Like Stockland, Frasers — majority owned by Thai beer baron Charoen Sirivadhanabhakdi — was attracted to Australand’s extensive residential development business, which includes an apartment development arm, an industrial property development business and a $2bn investment portfolio.
The acquisition of Australand dramatically increases Frasers’ exposure to Australia.
Hopes for more IPO action in the property sector have been stoked by GPT’s plans to spin off a suburban office fund, and a group including ex-Macquarie Bank property executive Stephen Girdis pulling together a portfolio of New Zealand office assets for a float.
DataRoom has now been told that RetireAustralia, owned by funds run by investment banks JPMorgan and Morgan Stanley, will revive float plans that it reportedly put on ice last month.
The group is the largest private retirement player in Australia and has more than 28 villages. More advisers are thought to have been called in and a roadshow for $500m float could kick off next month.
The Australian revealed in July that the group had recruited two veteran directors — former head of real estate at BT Financial , Gary Symons, and NAB wealth non-executive director, Sandra Birkensleigh — to its board.
Millinium Capital Managers has outlaid plans to list a $450m retirement village fund this year.
Elsewhere in the sector, Ingenia Communities Group has sold its NZ student accommodation portfolio to global real estate player Forum Partners for $NZ49.4m ($43.7m) and will plough the funds back into manufactured home estates.