A revised offer by a consortium of the C$192.8 billion (US$180.3 billion) Canada Pension Plan Investment Board, Toronto, and DEXUS Property Group to acquire Australian office REIT Commonwealth Property Office Fund was accepted by the board of the fund’s manager, pending due diligence, according to a filing Monday with the Australian Securities Exchange.
The consortium announced it had offered A$1.21 (US$1.13) per unit of the REIT, according to the filing. An original offer of A$1.15 per unit was rejected by the board of Commonwealth Managed Investments, which oversees the fund.
The revised offer is above the REIT’s Nov. 7 closing price of A$1.19, according to the filing. The REIT has a total book value of A$3.8 billion.
The deal includes exclusivity arrangements in favor of the DEXUS-CPPIB offer through Dec. 24 while the deal undergoes due diligence.
If implemented, the REIT will become an unlisted fund owned equally by DEXUS and the CPPIB, and will be managed by DEXUS.
CPPIB had a total of C$22 billion invested in real estate as of Sept. 30 and already has stakes in Australian property through ventures with Lend Lease Corp., Goodman Group and AMP Capital, said Linda Sims, CPPIB spokeswoman.