$2.38 Billion Pledged For New Office Tower Fund By Blackstone
AUSTRALIA – Blackstone Group seems to be interested in investing in large office tower funds as new reports reveal that the company will be investing US $2.38 billion for the new Investa Office Fund in order to make sure it gets access to some of the most sought after properties in Australia. In its attempt to land Investa, Blackstone will also be getting access to many other office buildings throughout the country.
Blackstone, which is a buyout company based in New York, has offered A $5.25 in cash for every share of Investa, which is a real estate investment trust. The offer by Blackstone is 13% higher than the closing price of the shares on Friday. Moreover, it is also confirmed that Investa’s directors are planning to opt for a unanimous vote by the investors for the new deal unless it gets a better offer.
After the news was revealed, Investa reported an 11% jump in its shares, as they reached a value of A $5.13 in Sydney.
It isn’t difficult to understand as to why Blackstone wants to go with the deal so desperately. The truth is that Blackstone, which already has assets worth $450 billion in its asset management, will get 37 new properties that stretch from Perth to Sydney, along with the eastern seaboard. That is a huge number of properties that the company will be getting once it pledges the money that it did for Investa.
Investa has been in the limelight since 2015. It has attracted a lot of people and possible investors. One of the biggest reasons why it got a lot of attention was because Dexus Property Group and when they proposed a new deal totaling to $2.5 billion (Australian dollars). However, this turned into a tie up that was then rejected by the unit holders. Investa was later approached by the Cromwell Property Group, which made advances to the property group in 2016 and 2017.
Investa, therefore, seems to be attracting a lot of investors and has attracted a lot of investors overtime. This means that the company is going to proof to be beneficial for the investors, irrespective of the amount of money they are willing to invest in the company.
This isn’t the first time that Blackstone has made an offer for Investa. Investa, in a statement revealed, that Blackstone Group made it a starting offer for $5.05 Australian dollars a share on 5th of April. However, this bid was sweetened after there were extensive discussions along with negotiations.
It seems like Blackstone is increasingly interested in Investa for it will bring it a lot of benefits. Once the group invests billions of dollars in it, it will get access to a lot of properties on the main property strips in Australia. Investa still hasn’t decided if it is going to go ahead with the decision of Blackstone’s interest in it. The company is due to comment and confirm but it is confirmed that the news affected its shares very positively.
