Blackstone offers $2.3 billion for Australia's Investa Office Fund

(Reuters) - Australia's Investa Office Fund (IOF) <IOF.AX> said on Monday it has received a A$3.08 billion ($2.3 billion) unsolicited non-binding buyout proposal from the Blackstone Group <BX.N>.

The directors of IOF manager Investa Listed Funds Management (ILFM) said they plan to unanimously recommend the offer, which equates to a distribution adjusted price of A$5.15 per unit.

The offer represents a 13.2 percent premium to IOF’s ex-distribution closing price of A$4.55 per unit on Friday, they added. ILFM's directors and Quartz Holding (NQ) Pte, a Blackstone affiliate, have entered a process deed setting out the offer's terms.

The bid marks a move deeper into the Australia-New Zealand real estate market for the U.S.-based private equity giant.

Less than two weeks ago, it struck a NZ$635 million ($439.4 million) deal to buy an office portfolio in Auckland which was co-held by Goodman Property Trust <GMT.NZ> and Singaporean investor GIC.

A Blackstone unit was said to be the buyer in the sale of a Sydney office building earlier this year. The building, which sold for A$205 million ($154.9 million), was owned by a unit of indebted Chinese conglomerate HNA Group.

(Reporting by Aaron Saldanha in Bengaluru; editing by Stephen Coates)

05/27/2018 20:28

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