This article is from the Australian Property Journal archive
AUSTRALIAN Unity has knocked back the sweetened $2.5 billion takeover bid for its unlisted Healthcare Property Trust from Canadian giant NorthWest Healthcare Properties.
The increased offer of $2.35 per unit for the trust was lobbed nearly on 12th March, about 7% above the initial unsolicited offer of $2.20 per unit made last month.
It was also 14% higher than the trust (AUHPT)’s wholesale unit price.
In a statement on Friday, the board of AUHPT’s responsible entity, Australian Unity Funds Management (AUFM), said it received “strong feedback” from AUHPT unitholders in support of the board’s decision not to engage with NorthWest on the initial proposal due to its value, conditionality and lack of certainty.
“The board of AUFM believes that the revised proposal still significantly undervalues AUHPT, having regard to the current and expected future value of the portfolio and benefits it could deliver to a potential acquirer.
“The revised proposal also remains highly conditional.”
AUHPT holds a 62-asset portfolio of health and medical properties worth over $2.45 billion.
“In addition, since the receipt of the initial proposal, the board of AUFM has engaged with counterparties and other stakeholders associated with, and highly important to the ongoing operations of, AUHPT,” the board said.
“Feedback from these parties supports the view that, given the uncertainty inherent in the NorthWest approach, further engagement with respect to the revised proposal could introduce significant risk to AUHPT’s ongoing commercial and operational relationships with key tenants and stakeholders.”
NorthWest has about $4.5 billion worth of property across Australia and New Zealand, and has a 16.2% stake the AUHPT.
