Australand woos buyers

PUBLISHED: 05 Mar 2013 PRINT EDITION: 05 Mar 2013 Gift Article: 100

Australand CEO Bob Johnston said all exit options are on the table. Photo: Andrew Quilty Gretchen Friemann Takeover target Australand Property Group will open a data room for prospective suitors within the next two weeks as it seeks alternatives to GPTs failed bid for its commercial and industrial platform. The diversified trust is hoping to land an offer for the entire business, which includes a $928 million residential portfolio. But investor sentiment towards the housing market has hit a nadir and so far the interest has been concentrated solely on Australands $2.9 billion commercial and industrial assets. According to senior sources, GPT had attempted to secure a partner to take out its smaller rivals residential properties before the launch of its unsuccessful proposal last December. But the search proved fruitless, as have its efforts since then. It is hoped the establishment of a data room will drum up more enthusiasm as investors will be able to access confidential information and gauge the value of the portfolio. Despite the lacklustre appetite for residential assets, Australands interim results showed its portfolio is performing better than its peers, partly because it is not exposed to the countrys housing black spots. At the earnings presentation, managing director Bob Johnston confirmed the trust was in play and said all exit options are on the table although he said any proposal must be in the interests of all share holders. Less than a month after GPTs failed bid, Australands largest stake holder, Singaporean real estate group CapitaLand, announced it would conduct a strategic review of its Australian investments as part of a wider plan to intensify its focus core Asian markets. The timetable of that review and CapitaLands intentions remain unclear. The Australian Financial Review

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