DEXUS Property Group, along with Canada Pension Plan Investment Board
have announced a proposal to buy out the Commonwealth Property Office Fund
The indicative, non-binding proposal will result in DEXUS and CPPIB acquiring $3.7 billion prime grade Australian office space.
Graeme Eadie, Senior Vice-President and Head of Real Estate Investments, CPPIB, said, “The Proposal is an excellent opportunity to expand our Australian core office portfolio and is in line with our strategy to invest in high-quality assets that are well positioned in their markets. As a long-term investor, we look forward to working alongside DEXUS in the advancement of this Proposal.”
The proposal will provide CPA shareholders a mixture of cash and DEXUS Stapled Securities at $1.150 per unit.
If implemented it is designed to provide CPA shareholders with both certainty of value and an opportunity to remain invested in a high quality internally managed Australian office platform with strong growth prospects.
Darren Steinberg, Chief Executive Officer of DEXUS, said, “The Consortium believes the Proposal represents an exciting opportunity for CPA Unitholders and has the capacity to deliver an attractive outcome for all stakeholders, in a timely manner”.
The Proposal is conditional upon the successful completion of satisfactory due diligence, DEXUS and CPPIB Board approvals and on the execution of a scheme implementation agreement.