CBA offers to internalise property groups

Commonwealth Bank of Australia Ltd has made an offer to the board of Commonwealth Managed Investments Limited to bring the management of the Commonwealth Property Office Fund (CPA) and the CFS Retail Property Trust Group (CFX) in-house.

The proposal to the retail trust group also means it would acquire the wholesale property funds management business and the integrated retail property management and development business owned by the bank.

In a statement to the Australian Securities Exchange, the board of CMIL, who acts for both CPA and CFX, said CBA's proposal was "highly conditional, indicative and incomplete".

The board set up a sub-committee of independent directors to consider the proposal but offered no assurance it will proceed.

The approval of CFX and CPA unitholders would be required for the proposal to the groups to proceed.

CMIL has appointed UBS AG, Australia branch as financial advisor and Ashurst, Australia as legal counsel.