Dexus to buy APN Property to expand funds management business

Dexus to buy APN Property to expand funds management business

Dexus is acquiring ASX-listed APN Property Group to further strengthen its funds management business.

Dexus has entered into a binding scheme implementation deed (SID) with APN Property Group in relation to a proposal for Dexus to acquire all of the stapled securities in APN for an all-cash consideration of 91.5 cents per security.

Total consideration payable by Dexus represents an equity value of A$320 million and enterprise value of A$308 million.

APN Property Group is listed on the Australian Securities Exchange (‘ASX’) (ASX: APD) and is a specialist real estate investment manager of two ASX-listed Real Estate Investment Trusts (‘REITs’), APN Industria REIT (ASX: ADI) and APN Convenience Retail REIT (ASX: AQR), and also manages direct unlisted property and securities funds.

As at 31 December 2020, APN had A$2.9 billion of funds under management and A$134 million of co-investments in its managed vehicles.

”On completion of the transaction, Dexus will have a funds management portfolio comprising A$23.9 billion that includes institutional wholesale capital, listed REITs, real estate securities and a direct unlisted property business,” said the company in a statement.

Dexus Chief Executive Officer, Darren Steinberg said: “This transaction supports our strategic initiative of expanding and diversifying our funds management business, increasing our suite of funds on offer outside of wholesale funds into listed REITs, real estate securities funds and unlisted direct property funds. The transaction also expands our investor network to include retail and high net worth capital.

“We believe APN is a high quality real estate funds management business that complements our existing platform, and we look forward to APN’s executives joining and strengthening the Dexus team while continuing to deliver strong results for investors”.

APN’s Chairman and largest securityholder, Chris Aylward said: “Dexus’s proposal represents compelling value to APN securityholders including a material premium to APN’s trading price. We believe the combination of the two platforms will provide incremental growth opportunities for the APN business as well as its underlying funds, investors and team members.”