Australand looks set to become part of the giant Singapore based Frasers Centrepoint group after Frasers today (Tuesday) reaffirmed a cash bid for the Australian developer at $4.48 per security.
The move will give Frasers a huge portfolio in Australia of projects that have been strong leaders in sustainability.
Assets already under the group’s control include Central Park in Sydney’s Broadway, where buildings will each be 5 Star Green Star and the precinct includes recycled water, trigeneration power and a high profile green wall designed by Patrick Blanc.
Australand has also been making a green splash with a stunning multi-residential development at The Green in Melbourne where innovative construction including part pre-fabrication has shaved 25 per cent off standard costs, the company claims.
There is also breakthrough technology in a geothermal system to be installed at its Fairwater masterplanned community in Western Sydney, where each house will have the benefit of steady temperatures, slashing power costs.
- See this story first flagged by The Fifth Estate earlier this year, Domestic scale geothermal innovation attracting interest
Frasers Property Australia has been under the control of Thai billionaire Charoen Sirivadhanabhakdi who in March 2013 made a successful takeover play for the Singapore-listed parent of Frasers Property Australia’s parent company, Frasers & Neave Limited.
In January this year Frasers Centrepoint Ltd, containing the property arm of the conglomerate, was spun off Fraser & Neave.
Industry sources say the new owners of Australand are not likely to shift the sustainability direction of the Australian company if the parent company’s track record with Frasers Property Australia is anything to go by. It’s been a distinct “hands off” approach in relation to sustainability and freedom to pursue existing strategies.
Australand recently announced higher profits after tax because of the strong residential markets in Sydney and Melbourne.
Australand’s portfolio in Australia is worth about $2.3 billion comprising office and industrial properties. Frasers Australia has a $9.3 billion development pipeline including Central Park.
Australand had previously been pursued by both Stockland and GPT Group.
Frasers chief executive Lim Ee Seng told Bloomberg that the acquisition was a good fit for his company.
“The due diligence affirms the rationale and strategic fit for Frasers to acquire Australand,” he said.
“Frasers had planned on achieving several key strategic objectives over the medium term, including increasing the proportion of overseas earnings and recurring income as well as enhancing our platform in Australia.”
Australand shares have risen 16 per cent this year and Frasers shares surged 24 per cent since they began trading on 9 January, the report said.