An independent report on the takeover by Challenger Life of the listed Challenger Diversified Property Group has been deemed “fair and reasonable”.

The property fund commissioned Deloitte Corporate Finance to look at the off-market takeover and report if the offer was fair to the unitholders.

Deloitte has put a valuation of the units at between $2.69 and $2.73 based on Australian Securities Exchange open trading.

Challenger has made a cash offer of $2.74 per unit, and based on this Deloitte has valued the units at the offer price.

“A higher offer from Challenger Life or an alternative acquirer seems remote in the current circumstances since Challenger Life has declared the takeover offer final and due to the size of the interest held by Challenger Life,” the report says.

Challenger Life had acquired 82% of the fund at the close of business on Thursday. The offer is due to close on May 28.