US private equity group Blackstone Group has entered a scheme implementation to buy Australia’s Investa Office Fund for $3.08 billion.
Under the Scheme, the listed property trust unitholders will get $5.25 cash per unit reduced by any distributions declared or paid after May 4.
The Directors of Investa unanimously recommended that unitholders vote in favour of the scheme.
Investa, with a portfolio value of around $4 billion, reported an average 14% a year return over three years.
“We are pleased to be entering into a binding Scheme Implementation Agreement with Blackstone today which provides IOF unitholders the opportunity to realise their investment in IOF at an attractive and certain price,” says Chairman Richard Longes.
“Once the Scheme is implemented, IOF unitholders will receive a cash payment at a significant premium to the trading price of IOF units prior to the announcement of the Blackstone proposal.”
Investa is being advised by JP Morgan Australia Limited as financial adviser and Allens as legal adviser.