Property group GPT is hoping to own half of eastern Australia's prime office space with a $3 billion takeover bid for Commonwealth Property Office Fund (CPA).
GPT has trumped a rival offer from Dexus Property Group and a Canadian pension fund, and its bid comes six months after it dropped a $3 billion bid for Australand’s commercial and industrial property assets.
But GPT chief executive Michael Cameron dismissed a suggestion there could be a bidding war for CPA to create Australia’s largest holder of prime office real estate.
“I’m not sure that’s relevant,” he told reporters on Tuesday.
“This is a compelling offer.
“It does put us into a strong position with $10 billion worth of office assets – it would see us in a situation where over half of the prime assets on the eastern seaboard, we would have an interest in.”
GPT is offering $1.272 for every CPA share, which is higher than the target’s Monday closing price of $1.205 on the share market.
Five weeks ago, Dexus and the Canada Pension Plan Investment Board proposed a $2.3 billion takeover of CPA to make it an unlisted company.
The two groups offered CPA shareholders $1.15 a share, in a bid to acquire CPA’s $3.7 billion office portfolio.
The Commonwealth Managed Investments board, which oversees CPA, said it was considering the GPT proposal.