Queensland-based Cromwell Property Group is selling its 10 per cent stake in Investa Office Fund after failing with a $3 billion takeover bid.
Cromwell says it will sell its entire shareholdings to Investa Property Group for $276 million.
Cromwell made an unsolicited, indicative proposal to take over Investa Office Fund in April, but chief executive Paul Weightman now believes a friendly acquisition would be unlikely to succeed regardless of how much was offered.
"The best way forward for Cromwell security holders is to realise the value in our investment," Mr Weightman said in a statement to the ASX on Wednesday.
Investa Property Group bought the stake for $4.65 per share to become the company's largest shareholder, giving Cromwell a profit on the $4.24 it paid when it acquired 9.83 per cent of Investa in April 2016.
Investa Office Fund shares were worth $4.37 at 1420 AEDT on Wednesday, down 2.9 per cent.
Shares in Cromwell were up by 0.52 per cent, or 0.5 cents, to 96.5 cents.
Cromwell blocked a $2.5 billion takeover by Dexus Property Group after buying its stake, but its own bid stumbled when Investa's board refused to grant access to its portfolio because of concerns over how Cromwell would fund the deal.
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