ASX-listed investment firm Propertylink has seized a 12.2 per cent stake in real estate investor Centuria Industrial REIT worth $90.3 million in an off-market takeover bid.
JPMorgan, on behalf of Propertylink, began purchasing on Wednesday and Thursday quickly amassing a 5 per cent stake.
It is understood that a total of 30.2 million shares have now traded at $2.99 each, bringing Propertylink's stake to 12.2 per cent.
Propertylink values the equity of its takeover target at $755 million with the full buy-out proposal conditional on it acquiring at least 50.1 per cent of Centuria's units.
The attempted takeover of the industrial fund is the latest move in a complex entanglement between the two fund managers.
Centuria, which controls a $1 billion property portfolio of industrial and logistics centres, last year made a failed bid for Propertylink and also owns shares in the Sydney-based investment firm.
Propertylink's rationale for the proposal included an attempt to grow the investment management business by establishing new funds and providing security holders with superior risk-adjusted returns.
It has also argued that its proposal would provide significant benefits to Centuria.
Propertylink divests 80 Mount Street, North Sydney
Propertylink has also announced the sale of its 14-storey office tower in North Sydney for $71 million.
The sale of the 80 Mount Street asset, to a private Hong Kong-based investor, reflects an initial yield of 4.32 per cent and a total equity return of 58 per cent.
Knight Frank’s Tyler Talbot and Dominic Ong in conjunction with CBRE’s James Parry, Kenny Duncanson and Sharon Yang managed the listing.
“Since the acquisition of 80 Mount Street, we have deployed a targeted capital expenditure program to refurbish and upgrade the building,” Propertylink chief investment officer Peter McDonald said.
“Most significantly however, we have undertaken extensive leasing activity across 55 per cent of the building area, driving occupancy from 75 per cent to 92 per cent over the last two years.”
The B-grade office asset comprising of 6,204sq m of net lettable area was acquired by Propertylink in August 2016.