Canada Pension Plan Investment Board, Toronto, and DEXUS Property Group made a non-binding bid for Commonwealth Property Office Fund, a REIT than owns Australian office buildings with a total book value of A$3.7 billion (US$3.5 billion).
The bid is A$1.15 per unit of the REIT, according to a joint news release from DEXUS and the CPPIB. Linda Sims, CPPIB spokeswoman, could not confirm the full value of the offer.
If the proposal is implemented, the REIT will become an unlisted fund owned equally by DEXUS and the C$188.9 billion (US$182.3 billion) CPP Investment Board, and will be managed by DEXUS , confirmed Ms. Sims.
CPPIB had a total of C$19.9 billion invested in real estate as of June 30 and already has stakes in Australian property through ventures with Lend Lease Corp., Goodman Group and AMP Capital, according to Ms. Sims.