''We remain bullish on the longer term outlook for Sydney office rents and capital values and believe
current implied pricing continues to lag private market transactions,'' Citi says.

'' Ultimately, we put a low probability on a materially higher bid emerging.''

Investa has a complicated structure. It is a real estate company managing more than $10 billion of office real estate.

As a specialist office manager of commercial office buildings Investa manages more than 40 assets in the key Australian CBD markets on behalf of the unlisted Investa Commercial Fund (ICPF), the ASX-listed Investa Office Fund and private mandates.

The unlisted ICPF also owns a direct 20 per cent stake in the listed Investa Office Fund and it remains unclear if it can vote on any formal offer.

According to Morgan Stanley analysts, Blackstone has not made a decision about the future management of the Investa Office Fund, ''however given the funds under management of the Investa platform could potentially fall from $9.2 billion to $5.2 billion, if the proposal proceeds, and Blackstone doesn't maintain management with Investa, we see Investa's ability to vote its 20 per cent stake, or Blackstone's decision to maintain management with Investa as the key items needed before Investa Office should trade to the A$5.15 distribution adjusted price''.

Amid the proposed takeover of the listed entity, the overall manager of the group, Investa Property Group said it is in the final stages of consulting ICPF unitholders in relation to a potential strategic initiative with an institutional partner for the Investa management platform.

The unlisted ICPF bought the Investa management platform from Morgan Stanley, for a suggested price of $90 million, in early 2016.

''Discussions with the potential partner are ongoing and incomplete, and at this stage no agreement,
arrangement or understanding has been reached in respect of any transaction,'' a statement from Investa said.

But any deal would not impact the Blackstone proposal.