Canadian landlord Oxford Properties Group lobbed a last-minute A$3.3 billion ($2.4 billion) bid for Australian office owner Investa Office Fund on Tuesday, edging out an earlier offer from US private equity firm Blackstone Group.
The bid landed two days before a scheduled shareholder meeting to approve Blackstone's takeover that has Investa's blessings. It caps years of suitors circling Sydney-listed Investa as tight supply and strong growth lift rents in Australia, especially in Sydney where Investa's towers are concentrated.
Oxford's offer, coming in A$90 million (Dh237.4m) over Blackstone's, was also slightly above the book value of the 20-property portfolio, which, besides Sydney, includes towers in Brisbane, Melbourne and Perth.
"What that is telling us is that the bidders see greater value going forward than what they're paying for the stock at the moment," said Winston Sammut, managing director of Folkestone Maxim Asset Management, adding he rued selling out of Investa recently.
"There's still a window of opportunity, if the economy keeps improving and employment continues to be strong, that demand for space will continue to be strong and that because of short supply, rents have to go up," he said.
Oxford, which already owns 10 per cent of Investa, offered A$5.50 per share, a 3.4 per cent premium to the last traded price for Investa shares, compared with Blackstone's offer of A$5.3485.
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Directors of Investa's manager, Investa Listed Funds Management, advised shareholders they still recommend the Blackstone proposal.
However, Investa said on Wednesday it was adjourning the planned shareholder meeting for today that was set to vote on Blackstone's offer while it weighs the attractiveness of Oxford's bid.
Blackstone, in a letter to Investa, said the Oxford offer was "not a superior proposal" and that it reserved its rights to terminate its bid and claim a break fee if the meeting were to be adjourned and Oxford's offer deemed better.
"The alternative proposal is subject to completion of full due diligence ... [and] there is a lack of funding certainty for the transaction," said the letter, which was released to media.
A Sydney-based spokeswoman for Oxford Properties Group, the real estate investment arm of Canadian pension fund Omers, was not immediately available for comment.
A spokeswoman for Blackstone, which already sweetened its offer last month, declined to comment. Oxford had no immediate comment.
The bidding war comes as the Australia's commercial property sector defies a softening in home values. With overall unemployment sitting at a six-year low and city downtown capacity barely growing, demand is outstripping supply.
Betting that would lift rents, Investa shareholders rejected an A$2.5 billion takeover from rival Dexus at A$4.11 per share two years ago.
Since then, office space in Sydney in particular has tightened dramatically, with commercial-to-residential conversions and a railway building project cutting space available at the same time as tenants have looked to expand.
British-based consultant Oxford Economics forecasts vacancy rates for Sydney offices to hit an all-time low of 3 per cent by the end of 2019.
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SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
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On sale: Now
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
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The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
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Company%20profile
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Company%20Profile
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If you go...
Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
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Fuel consumption: 11.12L/100km
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
LUKA CHUPPI
Director: Laxman Utekar
Producer: Maddock Films, Jio Cinema
Cast: Kartik Aaryan, Kriti Sanon, Pankaj Tripathi, Vinay Pathak, Aparshakti Khurana
Rating: 3/5
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
RESULTS
Argentina 4 Haiti 0
Peru 2 Scotland 0
Panama 0 Northern Ireland 0
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
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Company%20Profile
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THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
In 2018, the ICRC received 27,756 trace requests in the Middle East alone. The global total was 45,507.
There are 139,018 global trace requests that have not been resolved yet, 55,672 of these are in the Middle East region.
More than 540,000 individuals approached the ICRC in the Middle East asking to be reunited with missing loved ones in 2018.
The total figure for the entire world was 654,000 in 2018.
