The Canada Pension Plan Investment Board has teamed up with Australia’s Dexus Property Group in an effort to buy a company with a $3.7-billion portfolio of office buildings.
The duo is seeking to take over the Commonwealth Property Office Fund, a real estate investment trust that has been listed on the Australian exchange since 1999.
Its portfolio of about two dozen office buildings, which had a book value of $3.7-billion as of the end of June, would be managed by Dexus, a giant in the Australian office property market, and would be jointly owned by Dexus and CPPIB if the deal goes through.
“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,” CPPIB head of real estate investments Graeme Eadie stated in a press release.
CPPIB and Dexus began talks to work together after Dexus obtained the right to acquire an initial 14.9-per-cent stake in Commonwealth Property Office Fund.Report Typo/Error