CFS Retail and CBA ink deal


yes, box, survey, tick, choice,sign, dealThe CFS Retail Property Trust Group (CFX) is set to acquire the Commonwealth Bank’s retail property asset management business and wholesale property funds management rights for $460 million.

The transaction is subject to a number of conditions, including approval from CFX securityholders.

The announcement of the deal came as CBA and Commonwealth Managed Investments Ltd (CMIL) agreed to internalise the management of CFX.

CMIL is the responsible entity for CFX.

CBA currently holds about 286 million CFX securities.

“If the proposal is implemented, CFX will become one of Australia’s largest fully integrated and independently managed retail property groups, with $13.9 billion of assets under management,” CMIL chairman Richard Haddock said in a statement on Wednesday.

Haddock said CFX would benefit from lower costs, extra revenue streams and new growth opportunities, which would ultimately benefit securityholders.

CFX securityholders will vote on the proposal at an extraordinary general meeting expected to be held in March 2014.


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