REIT Takeovers: An Evaluation of Barriers to Activity

Zochling, HH; Phipson, M

REIT Takeovers: An Evaluation of Barriers to Activity

Zochling, HH Phipson, M

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Publisher:: PRRES
Publication Type:: Conference Proceeding
Citation:: PRRES conference Proceedings, 2011, pp. 1 - 21
Issue Date:: 2011-01

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Field	Value	Language
dc.contributor.author	Zochling, HH	en_US
dc.contributor.author	Phipson, M	en_US
dc.contributor.editor	-	en_US
dc.date	2011-01-16	en_US
dc.date.issued	2011-01	en_US
dc.identifier.citation	PRRES conference Proceedings, 2011, pp. 1 - 21	en_US
dc.identifier.uri	http://hdl.handle.net/10453/19336
dc.description.abstract	The global financial crisis in September 2007 resulted in the most significant downturn in global real estate markets in decades. Listed real estate markets were particularly affected, as the combination of high leverage and collapsing real estate values led to massive erosion of shareholder value and investment confidence. The Australian real estate investment trust (A-REIT) market suffered one of the largest downturns relative to its global peers. Currently the downturn appears to be abating, with most A-REITs having undertaken a process of balance sheet reconstruction, via asset sales, equity raisings and debt reduction. However, many A-REITs continue to trade at a significant discount to underlying net asset values. Such circumstances typically provide takeover opportunities that may unlock significant value. However, despite the potentially attractive values, we have seen limited recent takeover activity in Australia. This paucity of A-REIT takeovers suggests there may be barriers to such activity. This research examines the barriers to takeovers currently existing in the A- REIT market.	en_US
dc.publisher	PRRES	en_US
dc.relation.ispartof	PRRES conference Proceedings	en_US
dc.relation.ispartof	PRESS Conference: Climate Change - Its impact now and later	en_US
dc.title	REIT Takeovers: An Evaluation of Barriers to Activity	en_US
dc.type	Conference Proceeding
utslib.location	Sydney	en_US
utslib.location.activity	Gold Coast, Queensland	en_US
utslib.for	120503 Housing Markets, Development, Management	en_US
dc.location.activity	Gold Coast, Queensland	en_US
dc.location.activity	Warsaw, Poland
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.place-of-publication	Sydney	en_US
pubs.start-date	2011-01-16	en_US

Abstract:

The global financial crisis in September 2007 resulted in the most significant downturn in global real estate markets in decades. Listed real estate markets were particularly affected, as the combination of high leverage and collapsing real estate values led to massive erosion of shareholder value and investment confidence. The Australian real estate investment trust (A-REIT) market suffered one of the largest downturns relative to its global peers. Currently the downturn appears to be abating, with most A-REITs having undertaken a process of balance sheet reconstruction, via asset sales, equity raisings and debt reduction. However, many A-REITs continue to trade at a significant discount to underlying net asset values. Such circumstances typically provide takeover opportunities that may unlock significant value. However, despite the potentially attractive values, we have seen limited recent takeover activity in Australia. This paucity of A-REIT takeovers suggests there may be barriers to such activity. This research examines the barriers to takeovers currently existing in the A- REIT market.

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http://hdl.handle.net/10453/19336