GPT abandons $3b Australand bid
The diversified trust set the real estate investment trust sector alight on December 10 last year when it launched an indicative, non-binding offer for the commercial, industrial and investment divisions of rival Australand.
The offer did not include Australand's residential arm and was deemed too low by the takeover target and its major shareholder, with 59 per cent, CapitaLand.
The Australand directors said they had concerns the offer would leave its remaining residential business listed alone on the stock exchange with an uncertain future.
In mid-January, CapitaLand said it was reviewing its holding and would talk to other interested parties, after which a data room was established.
Several groups were said to have registered an interest to view the books, such as Mirvac and the global Blackstone Group.
Property analysts said at the time, that the proposed but non-binding offer by GPT would be the spark for a new round of mergers and acquisitions among the REITs - which has not occurred.
But some said on Monday that with the CapitaLand stake still on the market, Australand remains "a takeover target".
GPT's directors said that after detailed due diligence and discussions, it had become apparent that a transaction at a price that GPT was willing to pay was not possible.
The group will continue with growth plans for its logistics and business parks and office portfolios and allocate capital accordingly, it said
Frequently Asked Questions about this Article…
GPT Group launched an indicative, non-binding offer for Australand's commercial, industrial and investment divisions but after detailed due diligence and discussions it concluded a transaction at a price GPT was willing to pay was not possible, so it walked away from the proposed $3 billion bid.
No. The offer excluded Australand's residential arm, and Australand directors said they were concerned the deal would leave the residential business listed on its own with an uncertain future.
Australand's board and its major shareholder, CapitaLand (which owns about 59%), deemed GPT’s offer too low and raised concerns about the terms and the future of the remaining residential business.
Yes. After CapitaLand said it was reviewing its holding and a data room was established, several groups registered interest in viewing the books, including Mirvac and the global Blackstone Group.
Some commentators say Australand remains 'a takeover target' because CapitaLand's stake is still on the market, so further interest or offers could still emerge.
Property analysts suggested GPT’s proposed but non‑binding offer could spark a new round of mergers and acquisitions among REITs, but according to the article that broader M&A wave has not occurred.
GPT said it will continue with growth plans for its logistics and business parks and office portfolios and will allocate capital accordingly, focusing on its existing strategies rather than pursuing the Australand deal.
GPT launched the indicative, non‑binding offer on December 10. By mid‑January CapitaLand announced it was reviewing its holding and a data room was set up for interested parties. After due diligence and discussions that followed, GPT concluded it could not reach a price it was willing to pay and withdrew the bid.
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