ISPT and IFM update on merger to create $246bn manager

Months into potential merger talks at the request of significant shareholders in June, ISPT and IFM Investors have confirmed a decision is expected by mid-November. 

In June, the two industry super fund-owned firms told Super Review that a merger would recognise IFM and ISPT’s “complementary businesses and capabilities”. 

It said discussions were ongoing between the two organisations as they sought to “identify and assess the opportunities and risks for their shareholders, investors, businesses and people”. 

This would create a manager with around $246 billion in assets under management. 

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ISPT has now confirmed to Super Review that it has received a non-binding indicative offer (NBIO). 

In a joint statement, the firms stated: “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.”

While it has previously been reported the two firms were in merger talks, this marks the first time it has translated into a non-binding offer.

Presently, the firms have an extensive common shareholder base, including super funds like Cbus, AustralianSuper and HESTA. 

IFM Investors is the significantly larger player in the deal with approximately $224 billion under management as at 30 June 2023, which includes some $108 billion in infrastructure investments on behalf of 665 institutional investors, $44.3 billion of listed equities and private equity. 

Some of its portfolio holdings include airports in Sydney, Melbourne, and Adelaide; Southern Cross Station in Melbourne and NSW Ports.

Meanwhile, ISPT has a $22.5 billion portfolio of 140 properties across Australia, spanning office, retail, industrial, education, health and residential properties.