CPA piles pressure on Dexus fund

Commonwealth Property Office Fund lifts guidance, reveals increase in assets.

Commonwealth Property Office Fund (CPA) has underlined its decision to spurn a bid by rival office owner Dexus (DXS) and the Canadian Pension Plan Investment Board by upping guidance and revealing its net tangible assets (NTA) have increased over the first quarter of fiscal 2014.

Last week CPA rejected Dexus's takeover bid, which is equivalent to $1.15 per share – in line with CPA's NTA at the end of June 30.

The offer was rejected by the board of the entity that manages CPA on behalf of the Commonwealth Bank as failing to provide a compelling value proposition.

Today CPA announced that its NTA had increased 1 cent to $1.16 following an uplift in valuation across a number of properties in its portfolio, including 385 Bourke Street.

The Commonwealth Bank's office property owner has also increased its distribution guidance for the year by 1.5 per cent to 6.65 cents per share after securing several new leases with existing tenants at its buildings over the quarter.

CPA fund manager Charles Moore declined to be drawn on the details of the offer but said there was further scope for CPA's NTA to rise as more buildings were revalued in the second quarter of this year.

The Australian