Canada Pension Plan Investment Board, Toronto, and DEXUS Property Group's A$3 billion (US$2.7 billion) offer to acquire Australian REIT Commonwealth Property Office Fund was accepted by the Australian REIT's board, according to a filing Wednesday with the Australian Securities Exchange.
The offer from the C$192.8 billion (US$181.1 billion) pension fund board and DEXUS, made Dec. 11, was for A$1.268 per unit of the REIT.
It was the consortium's third offer for the REIT; an offer of A$1.21 per unit had been accepted in November pending due diligence by the board of Commonwealth Managed Investments, which oversees the Commonwealth REIT. During the due-diligence period, a rival bid of A$1.235 a share was made by another Australian REIT, GPT Group, on Nov. 19. The consortium's original bid of A$1.15 per unit was rejected by CMI.
The Commonwealth REIT is a portfolio of Australian office buildings with a total value of A$3.9 billion. DEXUS, which has a 14.9% interest in the Commonwealth REIT, has said it would keep its stake.