The position of unitholders in the Australian Industrial REIT has changed since they last rejected 360 Capital Group's attempt to replace manager, Fife Capital. At least that is according to the chairman of 360 Capital Group, David van Aanholt.
In the past week, the 360 Capital Industrial Fund - its stock ticker is TIX - has raised its bid for Australian Industrial REIT. At the same time, 360 Capital Investment Managenet, the responsible entity of the 360 Capital Industrial Fund, has called another meeting to replace the Australian Industrial REITs manager. They are the latest moves in a bitter nine month battle for control of the $229 million Australian
Industrial REIT and its $330 million holdings of warehouse and industrial properties. This month, an offshore consortiumn made a $230 million "indicative, non-binding" cash bid for the Australian Industrial REITstirring up the battle once again. On Monday the 360 Capital Industrial Fund issued its explanatory memorandum for the new meeting and its new bidders statement. "Since the previous meeting.. there have been significant changes to your investment in the Australian industrial REIT, " he wrote in a letter to Australian Industrial REIT unitholders. First, the odder from 360 Capital has been increased. For every unit in Australian Industrial REIT, unitholders have been offered 0.9 units in the 360 Capital Industrial Fund plus 24.5 cents in cash. "The TIX offer is now unconditional, certain and capable of immediate acceptance, "Mr van Aanholt wrote, underlining the difference with the "indicative" bid from a yet to be disclosed international consortium. At the same time, TIX now have over 33 per cent of its target and, according to Mr van Aanhot, is in a "significantly stronger position to acquire 100 per cent of the Australian Industrial REIT" and create "a large, more profitable, more diversified and lower-risk industrial A-REIT. He also noted that as TIX increased its stake, the trading liquidity in the Australian Industrial REIT would continue to reduce, and, if the stock was removed from the S&P/ASX 300, "may have a negative impact" on price.
Source: NAB A-REIT Morning News - Tuesday 29th September 2015