Commonwealth Bank of Australia to accept Dexus-led bid for office fund CPA – Reuters

Dec 18 (Reuters) – Commonwealth Bank of Australia (CBA) on Wednesday said it will accept an offer from Dexus Property Group and the Canada Pension Plan Investment Board (CPPIB) to buy Commonwealth Property Office Fund (CPA) for US$2.7 billion.

The fund, which owns 26 office buildings in major business districts, is the target of a bidding war between the Dexus-led consortium and rival property investor The GPT Group, as they seek more Australian office real estate because it promises high yields.

Dexus and CPPIB’s latest cash and stock offer, announced on Dec. 11, values the fund at A$3 billion (US$2.7 billion), 2.6 percent more than a bid from GPT. The value of the bids fluctuate according to the share prices of Dexus and GPT.

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