Dexus Property Group has called on advisory firm Moelis for assistance with its acquisition of a $180m cornerstone stake in the Australian Unity Healthcare Property Trust.
The group is understood to have fended off competition from GPT Group and ISPT to buy the 7 per cent interest in what many perceive as a defence tactic by Australian Unity at a time the trust has been a takeover target.
Charter Hall and Kohlberg Kravis Roberts were also understood to have held discussions in the early stages.
Dexus – Australia’s largest office landlord – told the market on Wednesday that it had made the investment at $2.60 per unit as part of the fund’s $320m capital raising by way of a placement and entitlement offer.
The $11.55bn property group has been in acquisition mode of late, making a $320m bid for APN Property Group last month, and it has been keen to extend its exposure in the healthcare space, with it already controlling its own Dexus Healthcare Property Fund.
Australian Unity is one of Australia’s largest healthcare operators and its healthcare property trust has been under threat from NorthWest Healthcare Properties, which has made three bids for the trust, with its initial bid at $2.20 and its latest offer sweetened to $2.7bn or $2.55 per unit.
As part of the Dexus deal, Dexus has the first right to acquire a 25 per cent indirect interest in the trust’s Australian Bragg Centre and also the trust’s management platform when Australian Unity opts to sell.
It can also participate in its $1bn development pipeline.
The healthcare trust’s portfolio comprises 67 hospitals and healthcare properties worth $2.33bn.
It has delivered unit holders 25.1 per cent returns over the past 12 months and 14.9 per cent annually over the past five years.
DataRoom revealed on May 20 that the management of the Australian Unity Healthcare Property Trust had made approaches to some real estate groups about forming a partnership to fend off its suitor NorthWest Healthcare Properties and taking a stake at a premium of about 10 per cent to its valuation.
Australian Unity also sought a partner for the listed Australian Unity Office Fund when it was a takeover target by Starwood Capital as a defensive move, with Keppel taking a stake.
Working with Australian Unity’s trust has been adviser Greenhill.
The Goldman Sachs-advised NorthWest has secured a stake of about 16 per cent in the trust after entering into option agreements with the Scanlan family-controlled Hume Partners.
It took a similar approach with Healthscope to gain control of its real estate assets, which it now owns in a joint venture with Singaporean sovereign wealth fund GIC.
The fund bought a stake in hospital operator Healthscope when it was a takeover target about two years ago by BGH Capital and Brookfield, to buy itself a seat a the negotiating table.
With regard to the stake in the Australian Unity Healthcare Property Trust, the Canadian fund paid a premium of about 10 per cent for its stake at a reported $2.2057 per unit.
NorthWest had called a meeting to determine the fund’s future on July 1, which is being challenged in the courts by Australian Unity.
It will be interesting now to see if NorthWest takes legal action of its own to thwart the latest agreement between Australian Unity and Dexus.
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