Dexus-CPPIB consortium offers AUD2.7 billion bid for Australian bank trust
Commonwealth Property Office Fund (CPA) received a AUD2.7 billion or USD2.55 billion bid from fund-real property firm consortium. The office trust of the Commonwealth Bank of Australia received the buyout offer from the team-up of The Canada Pension Plan Investment Board (CPPIB) and Dexus Property indicated a growing interest in real property assets in Australia from foreign investors.
CPPIB senior vice-president and head of real estate investments Graeme Eadie said about the bid, "The (CPA) proposal is an excellent opportunity to expand our Australian core office portfolio and is in line with our strategy to invest in high-quality assets that are well position in their markets."
CPA had an attractive portfolio worth AUD3.7 billion or USD3.5 billion. The portfolio included prime retail space in Australia's capital, Sydney. Should the acquisition push through, CPPIB would be able to expand its assets in Australia.
Jones Lang LaSalle said foreign investment in properties in Australia had blossomed to AUD39.4 billion last year, almost double on a year-per-year average.