CPPIB And Dexus Lead CPA Takeover Bid
News: Australia's Dexus Property and its joint venture (JV) partner Canada Pension Plan Investment Board (CPPIB) are set to win the AUD3.8bn (US$3.42bn) takeover bid for the Commonwealth Property Office Fund (CPA). The consortium's biggest rival, GPT Group, opted to withdraw its bid for the Australian real estate investment trust (REIT) after deciding not to increase its off-market takeover offer. GPT's agreements with three investors who granted it pre-bid acceptances, Morgan Stanley Investment Management, SG Hiscock & Company and Gruss Global Investors, expired on January 14.
BMI View : Australia's real estate sector has emerged as an attractive destination for capital investment in light of the increased risks in the mining sector. That said, China's slowdown and its effect on the Australian economy in 2013 and the coming years is subduing growth in yields.