As real estate investors in the market digest news about a $486m takeover bid lobbed by Starwood for the Australian Office Fund, they remain in the dark as to how much Gaw Capital Partners is offering for the $1.69bn National Storage REIT.
Shares in National Storage on Wednesday closed at $2.16 after the company last week confirmed it had received an approach from Gaw Capital, but failed to disclose a price.
Negotiations are believed to be continuing.
DataRoom understands a price range has been offered by Gaw to the suitor.
Some observers suspect that the initial offer price by Gaw was possibly close to the $2 mark, which is why it has not been disclosed.
National Storage’s adviser, JPMorgan, is understood to be speaking to parties in the US, including private equity firms such as Kohlberg Kravis Roberts, The Carlyle Group and Blackstone, in the hope of drumming up a higher offer.
It comes as the Australian real estate investment trust sector started the year with a bang when it comes to mergers and acquisition activity at a time when stocks are rallying amid a low interest rate environment.
On Wednesday, Centuria Capital announced it was embarking on a $174m acquisition of New Zealand real estate fund manager Augusta Capital. It launched a $60m institutional placement through Moelis and UBS that was later increased to $80m at a time when demand remains strong for A-REITS.
Meanwhile, Starwood’s move on Australian Unity Office Fund on Wednesday has sparked intrigue, given that the $2.98-a-share offer price was less than the $3.04 that Charter Hall and Abacus Property offered for the company last year in a scheme-of-arrangement proposal that was voted down.
Hedge funds with 16.7 per cent of the stock are backing the deal with Starwood, which has bid for the company before, in the hope it will get the board to engage with suitors.
The challenge for any acquirer is Hume Partners, which holds about 14 per cent of the stock and has been strongly opposed to a privatisation of the business in the past.
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