Commonwealth retail fund to pay A$460m for management

This will give CFS Retail Property Trust control of A$516b of properties

Published Wed, Dec 18, 2013 · 10:00 PM
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[SYDNEY] Commonwealth Bank of Australia's managed retail property trust agreed to pay A$460 million (S$516 million) to take over its operations from the lender.

The agreement will give CFS Retail Property Trust control of A$516 billion of properties, including A$8.6 billion in the fund and assets in the lender's unlisted property funds, according to a regulatory filing yesterday. CFS Retail will partly fund the purchase through a A$280 million fully underwritten share placement to institutional investors yesterday, it said.

The deal advances a plan to exit property by Australia's last major bank with a real estate business. Kiwi Income Property Trust, one of CBA's three managed property trusts, internalised its management last month. Commonwealth Bank's third real estate trust, the Commonwealth Property Office Fund, is the target of a takeover battle between bigger rivals Dexus Property Group and GPT Group.

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