ISPT, IFM Investors advance on $240bn merger

Industry super fund-owned IFM Investors and property investor ISPT have offered an update on the status of their merger after more than a year of discussions and negotiations.

In a joint statement on Tuesday, the pair confirmed the ISPT board has notified IFM Investors that it has elected to support a binding offer made to ISPT and their unit holders.

“The offer will be put to unitholders and shareholders of ISPT for a vote in the coming months,” the firms said.

The merger would result in a unit with $240 billion in assets under management.

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News of a potential merger between the two entities was first flagged in June 2023, with ISPT and IFM Investors sharing at the time that they are exploring the merits of a potential merger at the request of significant shareholders. 

In a joint statement issued back in 2023, the pair said a merger would recognise their “complementary businesses and capabilities”.

An update was issued in November, in which ISPT confirmed it had received a non-binding indicative offer.

“In relation to a potential merger between the two organisations, ISPT is currently considering a NBIO submitted by IFM Investors, and a response is anticipated by mid-November,” it said.

However, a response did not come in November, with the firms only now issuing an update after a year of silence. 

Presently, the firms have an extensive list of common shareholders, including super funds like Cbus, AustralianSuper, UniSuper, and HESTA. 

IFM Investors is the significantly larger player in the deal with approximately $218.3 billion invested on behalf of 717 institutional investors at 30 June 2024. This includes $110.2 billion in infrastructure equity, $49.2 billion in debt investments, and $1 billion in private equity.

Some of its Australian portfolio holdings are airports in Brisbane, Melbourne, and Adelaide; the Port of Brisbane; and Ausgrid. Globally, its assets include Vienna Airport, Indiana Toll Road, and Mersin International Port in Turkiye.

Meanwhile, ISPT has a $20.3 billion portfolio of 139 properties across Australia, spanning office, retail, industrial, education, health, and residential properties.