Takeover target PropertyLink has revalued a majority of its industrial portfolio by $31 million as its independent directors work towards concluding a deal with the private equity investment house, ESR.
The directors of PropertyLink commissioned the independent valuations in response to the non-binding, indicative and conditional proposal from ESR to acquire all the PropertyLink securities which it does not already own by way of an agreed off-market takeover offer.
The chief executive Stuart Dawes said independent valuations were completed for 29 of the 31 properties in the wholly-owned portfolio to the end of September 2018.
This resulted in a net increase of $30.9 million or about 3.9 per cent, with the weighted average
capitalisation rate, reduced by 17 basis points to 6.49 per cent.
Across the investment management platform, 25 of the 28 properties were independently valued, resulting in an increase in the carrying value of the co-investment in external funds of $8.6 million.
PropertyLink owns and manages a diversified portfolio of logistics, business park and office properties, with more than $1.8 billion of assets under management.
On the proposed takeover, the PropertyLink directors said they intend to unanimously recommend that PropertyLink securityholders accept a takeover bid from ESR at $1.20 per security.
But in a twist, the major shareholder, Centuria Capital which owns 19.51 per cent of PropertyLink has requisitioned an extraordinary meeting for November 15 to oust all the board, except Mr Dawes.