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Shares of Irongate, previously known as Investec Australia Property Fund, were on track for their best day in almost two years on Monday morning after it said it had received a buyout offer valuing it at A$1.28bn (R14bn).

The A$1.90 per share offer, from a managed partnership comprising Dutch pension fund PGGM and property investor Charter Hall, represents a 21% premium to Irongate's closing price on Friday.

After gaining as much as 14.96% in early trade, by the JSE’s close the group's shares had risen the most since March 2020, up 12.69% to R19.80. 

Irongate was listed by the Investec group on the JSE in 2013 and on the ASX in 2019. It had a portfolio of 36 properties at end-September, valued at A$1.425bn.

Late in 2021, Irongate rejected a revised A$1.1bn offer from fund manager 360 Capital, saying it undervalued it.

Irongate had already rejected an earlier offer from 360 Capital in October of A$1.65 per security, which was unsolicited and had numerous conditions, including unanimous support from the Irongate board. 360 Capital holds about a fifth of the Australian-focused property group.

To support the certainty of the proposal going ahead, the managed partnership has also entered into an agreement with 360 Capital that would see that group acquire certain Irongate assets should it proceed.

Update: January 31 2022
This story has been updated with the closing share price.


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