Australian Unity rejects $2.5 billion offer from NorthWest Healthcare to buy its unlisted healthcare real estate fund

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Australian Unity has shot down a $2.5 billion offer from Canada’s NorthWest Healthcare Properties to purchase its Healthcare Property Trust.

NorthWest had made an initial offer of lifted its offer of $2.20 per unit in February before raising its offer last month to $2.35.

The Canadian company is already one of Australia and New Zealand’s biggest owners and managers of healthcare related real estate, totalling close to $4.5 billion, and has a 16.2% stake in Australian Unity’s healthcare property fund, leading to the bid for purchase.

But Australian Unity said the offer was still well below the value of the entire portfolio, with its board saying it is not in the best interests of unitholders to engage further with NorthWest.

NorthWest has indicated it could still go higher with its offer if there is more value found within the portfolio however, the Australian Financial Review reported.

Meanwhile, Australian Unity recorded revenue of $1.66 billion for the full year of 2020 with the company’s asset, funds under management, advice and developments value sitting at $24.1 billion.

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