REFILE-UPDATE 1-Canada fund, Dexus make $2.55 bln offer for Australian office trust
* CPPIB and Dexus team up for $2.55 bln offer for CPA
* Underscores foreign interest in Australian property sector
* CPA portfolio valued at $3.5 bln
SYDNEY, Oct 11 (Reuters) - The Canada Pension Plan Investment Board (CPPIB), one of the world's largest pension funds, has teamed up with Dexus Property to make an initial A$2.7 billion ($2.55 billion) offer for Commonwealth Bank of Australia's office trust.
The bid for the Commonwealth Property Office Fund (CPA) , the latest in a flurry of deals in the real estate investment trust sector, underscores growing interest from foreign investors in Australia's property and infrastructure markets.
High yields combined with clear market regulations and strong export links to Asia, especially China, is putting Australia firmly on the radar for sovereign investors such as CPPIB.
Foreign investment in Australian property, including hotels, office space and retail malls, almost doubled year-on-year to A$39.4 billion last year, according to Jones Lang LaSalle.
The bid for CPA, which has a portfolio worth A$3.7 billion ($3.50 billion) that includes prime retail space in Sydney, will significantly expand CPPIB's assets in Australia. Continued...