SYDNEY Jan 14 Australian property firm The GPT
Group said on Tuesday it would not lift its bid for
Commonwealth Property Office Fund (CPA), paving the way
for a rival consortium led by Dexus Property Group to
seal a deal.
GPT had until Tuesday to either match or beat a A$3 billion
($2.72 billion) offer from Dexus for CPA.
While the GPT offer remains open until Jan. 24, three major
investors who gave GPT pre-bid acceptances are now free to
switch allegiance to Dexus, a move expected by analysts.
GPT and Dexus earlier this month agreed an asset sale that
analysts viewed as a consolation deal for GPT after a six-month
Dexus, CPA's preferred bidder, agreed to sell five office
buildings in Sydney and Melbourne with a combined value of about
A$1.2 billion ($1.08 billion) to GPT.
Backed by the Canada Pension Plan Investment Board (CPPIB),
Dexus also proposed an alternative offer of A$0.8496 cash and
0.3801 Dexus securities per CPA unit. That provides a bigger
proportion of cash compared with the original A$0.7745 cash and
CPA investors will be able to choose either the alternative
offer, which values each CPA unit at A$1.272, or the original
Both Dexus and GPT are large, diversified firms keen to lift
their exposure to high-yielding Australian office real estate.
CPA owns 26 office buildings in major business districts across
($1 = 1.1043 Australian dollars)
(Reporting by Jane Wardell; Editing by Leslie Adler)