CFS, CBA ink $460m deal

Property trust group to buy bank's integrated retail asset management business.

CFS Retail Property Trust Group will pay $460 million to the Commonwealth Bank of Australia to acquire its integrated retail asset management business.

In a statement to the Australian Securities Exchange, CFS said the business provides property management, development management and leasing services for CFS-owned and co-owned properties, wholesale property funds and third party mandates.

CFS will also acquire its responsible entity, Commonwealth Managed Investments, from the bank.

CMIL said the deal will allow it to assume the management of CFS and a number of wholesale property funds and other direct property investment mandates.

A $280 million fully underwritten institutional placement will be launched today to partly fund the transaction, in combination with debt and a security purchase plan.