Dexus’ $320M investment in Australian Unity as NorthWest takeover bid nears

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Australian healthcare operator, the ASX-listed Dexus, has announced a $180 million cornerstone investment in a $320 million raising launched by Australian Unity Healthcare Property Trust as it tries to bolster its defense of a takeover bid for the unlisted vehicle from Canadian-based healthcare real estate operator NorthWest.

As part of the deal, Dexus will also receive a first right over the management platform for AUHPT if it opts to sell any interest in it. The investment was at $2.60 per wholesale unit, a 16% premium to the current net asset value of units, and gives Dexus a 7% stake in the fund, whose register is populated by 10,000 or so smallholder investors.

The Dexus deal puts new light on NorthWest Healthcare Properties’ pursuit of AUHPT, which will culminate in a unitholder meeting to vote on its $2.7 billion bid to buy one of Australia’s largest unlisted healthcare property funds, with assets worth $2.4 billion.

Australian Unity Funds Management board has urged unitholders to vote against NorthWest’s bid before the deadline of 10am, 28 June. NorthWest has gained a 5.1% stake in AUHPT and can count on a 11% stake held by Hume Partners. NorthWest needs 75% of the vote to take over AUHPT.