Toronto, Canada (April 15, 2014): Canada Pension Plan Investment Board (CPPIB) announced today that, together with DEXUS Property Group (DEXUS), they have completed the compulsory acquisition of 100% of the units in the Commonwealth Property Office Fund (“CPA”).
The acquisition was made through a joint bid trust known as DEXUS Office Trust Australia (“DOTA”). CPPIB holds a 50% interest in DOTA for an equity investment of approximately A$1.85 billion. As part of the transaction, DOTA has agreed to sell four assets to a third party for a total consideration of A$679 million which will reduce CPPIB’s equity investment to approximately A$1.5 billion.
The takeover bid was initially announced on December 11, 2013 with the offer opening on January 6, 2014. Upon closing of the bid on March 7, 2014, DOTA had received acceptances from unitholders representing 94.8% of CPA units. On April 15, 2014, DOTA proceeded to compulsorily acquire the remaining units in CPA.
After the sale of four assets to the third party, DOTA will own a diverse portfolio of 21 high-quality office properties, located in major office markets across Australia, with total assets of A$3.3 billion.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2013, the CPP Fund totalled C$201.5 billion. For more information about CPPIB, please visit www.cppib.com.
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