Starwood Makes $480 Million Bid for Australian Unity Office Fund

Starwood Capital Group has made it’s fourth play in an attempt to takeover the listed Australian Unity Office fund.

The $480 million unsolicited bid, at $2.95 per unit, follows on from Starwood’s earlier unsolicited proposals which began in March this year.

US investment house Starwood increased its offer by more than 20 per cent since its first offer of $2.43 per unit on March 29.

Starwood is a private investment group co-founded in 1991 by chairman and chief executive Barry Sternlicht. The US firm currently has $51 billion (A$72 billion) in assets under management.

“The proposal represents a 21.4 per cent premium… reflecting an increase of $0.52 per unit,” Australian Unity said.

“Furthermore the proposal represents a 10.5 per cent premium to 30 June 2018,” the Australian fund continued, where the group’s net tangible assets were valued at $2.67.

Australian Unity Investment Real Estate, the entity responsible for the fund, has given Starwood four weeks to complete its due diligence and finalise the new proposal.

ASX-listed Australian Unity office fund owns a diversified portfolio of nine office properties located across Australia’s metro and CBD markets.

Last year, Starwood struck a deal with Melbourne-based developer Golden Age to develop an upmarket $600 million hotel and apartment complex at 85 Spring Street in Melbourne's CBD, a site the developer snapped up from property giant Grocon.

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Main image: 468 St Kilda Road Melbourne office asset held by Australian Unity