CBRE Clarion Securities has increased its stake in the $2.5 billion Investa Office Fund, which has agreed to a merger with rival real estate trust DEXUS Property Group.
CBRE has lifted its voting power in IOF to just under 10.5 per cent, giving it a powerful voice in the fate of the office fund.
Some industry sources said the move reflected CBRE Clarion’s belief that a higher cash takeover offer will emerge from an interloper in the new year. DEXUS’s current bid is 80 per cent scrip and the maximum cash consideration is around $505 million.
The stake is also an “important blocking stake” if CBRE Clarion wants more cash from DEXUS as well, one source said.
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CBRE Clarion was one of the investors who called for a wind-up of IOF at the annual general meeting in November. At the meeting director Gavin Peacock said the strong current sales evidence of direct property was “conducive to exploring a full sale of the IOF portfolio.”
CBRE Clarion Investors director Gavin Peacock supported winding up IOF.
A vote on the $10 billion-plus merger with DEXUS is due to happen in April after the two parties struck a binding implementation agreement under which they can be merged.
IOF shares were up slightly on Thursday afternoon at $4.04.
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