Takeover of CPA will make Dexus nation's biggest landlord
The offer is for $1.20.5 a unit for CPA with an equity component in Dexus. A process of due diligence will now take place so CPPIB can view the CPA assets.
Dexus will emerge as the largest office landlord in the country, with a single, 26 per cent share of the Sydney high-grade office market.
It is expected that, as part of the deal, CPA will operate as an unlisted wholesale office fund with some of the assets put into the Dexus wholesale office fund.
The deal comes as the Canadian Brookfield Asset Management released its third-quarter results at the weekend.
It reported funds from operations for the third quarter of 2013 were $US1.2 billion, or $1.85 a share, an increase of $US970 million from the third quarter of 2012.
The group's Brookfield Property Partners said it was still considering a possible float of a $US4 billion Australian office portfolio, as the group believed the local market was still soft, particularly for leasing.
For the quarter the group reported a consolidated net income that doubled during the third quarter to $US1.5 billion, or $1.23 a common share.
Total net income for the nine months increased to $US3 billion.
"In our property group, we acquired a US warehouse business for $US1.1 billion and merged it with our existing operations to create one of North America's largest logistics platforms," the group said.
"We committed $US750 million to acquire a 22 per cent interest in an office and retail portfolio in Shanghai. We closed the purchase of a $US2 billion portfolio of office buildings in downtown Los Angeles and acquired two urban shopping malls and an office property in San Francisco."
Frequently Asked Questions about this Article…
The takeover of CPA by Dexus Property Group is significant because it will make Dexus the largest office landlord in Australia, with a 26% share of the Sydney high-grade office market.
The takeover of CPA by Dexus Property Group is significant because it will make Dexus the largest office landlord in Australia, giving them a 26% share of the Sydney high-grade office market.
Dexus Property Group has lodged a formal offer of $1.20.5 per unit for CPA, which includes an equity component in Dexus, valuing the deal at approximately $3.8 billion.
Dexus Property Group's offer for CPA is valued at approximately $3.8 billion, with an offer of $1.20.5 per unit for CPA, including an equity component in Dexus.
The Canada Pension Plan Investment Board (CPPIB) is a joint partner with Dexus in the offer for CPA. CPPIB will conduct due diligence to review CPA's assets as part of the process.
The Canada Pension Plan Investment Board (CPPIB) is a joint partner with Dexus in the offer for CPA. They will conduct due diligence to review CPA's assets as part of the process.
After the takeover, CPA is expected to operate as an unlisted wholesale office fund, with some of its assets being integrated into the Dexus wholesale office fund.
After the takeover, CPA is expected to operate as an unlisted wholesale office fund, with some of its assets being integrated into the Dexus wholesale office fund.
The deal positions Dexus as a dominant player in the Australian office market, particularly in Sydney, potentially influencing market dynamics and leasing conditions.
Brookfield Asset Management, which reported strong third-quarter results, is considering a float of a $US4 billion Australian office portfolio, indicating interest in the local market despite its softness, particularly in leasing.
Brookfield Asset Management reported funds from operations of $US1.2 billion for the third quarter of 2013, an increase from the previous year, and a consolidated net income that doubled to $US1.5 billion.
Brookfield Property Partners recently acquired a US warehouse business for $US1.1 billion, merged it with existing operations, and committed $US750 million to acquire a 22% interest in an office and retail portfolio in Shanghai.
Yes, Brookfield Property Partners is considering a possible float of a $US4 billion Australian office portfolio, although they note the local market remains soft, especially for leasing.
Brookfield Asset Management reported funds from operations of $US1.2 billion for the third quarter of 2013, an increase from the previous year, and a consolidated net income that doubled to $US1.5 billion.
Brookfield has acquired a US warehouse business for $US1.1 billion, merged it with existing operations, and committed $US750 million to acquire a 22% interest in a Shanghai office and retail portfolio, among other acquisitions.
Brookfield Property Partners considers the local Australian office market soft, particularly for leasing, which is why they are contemplating a float of their Australian office portfolio.
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