Australia's CFS inks $460M deal to acquire CBA business
CFS Retail Property Trust Group has signed a deal to acquire the integrated retail asset management business of the Commonwealth Bank of Australia (CBA). The said transaction is valued at $460 million, according to Business Spectator.
CFS told the Australian Securities Exchange that the business provides leasing services, property management, and development management services for CFS-owned and co-owned assets. The business also provides the same services to third party mandates and wholesale property funds, the report detailed.
Under the terms of the said deal, CFS will also acquire Commonwealth Managed Investments Ltd (CMIL) from CBA, the report added.
According to CMIL, the purchase will allow it to gain management over CFS, several whole sale property funds, and direct property investment mandates, the report said.
To partly fund the acquisition deal, CFS will launch a $280-million fully underwritten institutional placement today. In addition, the deal will also be funded through a combination of debt and security purchase plan, Business Spectator reported.