News: Financial institution Canadian Pension Plan Investment Board (CPPIB) is said to be making a US$2.7bn hostile takeover bid for Australian property owner Commonwealth Property Office Fund, according to the Australian. The bid is in partnership with Australian property group Dexus and is part of CPPIB's strategy to expand in the Australian core office market. Commonwealth owns US$3.5bn worth of office properties in major Australian cities.
BMI View: In spite of macroeconomic pressures in light of the slowdown in China weighing on demand in the sector, the Australian real estate market has aligned itself with a modest growth trajectory across all major cities. With no major anticipated change in the supply and demand dynamic, we expect the sector to stay the course with Sydney, Brisbane and Perth continuing the gradual growth pattern.