Commonwealth Bank shedding of commercial property trusts dismissed as “speculation”

Reports suggesting the Commonwealth Bank is seeking to shed management of its listed commercial property platforms – the CFS Retail Property Trust Group and the Commonwealth Property Office Fund  - have been dismissed as “speculation”.

The two A-REITS have a combined value of $20 billion.

The responsible entity of the fund is the Commonwealth Managed Investments Limited (CMIL), a subsidiary of the Commonwealth Bank while another subsidiary, Colonial First State Global Asset Management (CFSGAM) manages the trusts.

It follows the Australian Financial Review’s StreetTalk column revealing last week that a “number of unsolicited approaches were made by a string of potential buyers” to replace the bank as responsible entity of the two A-REITS.

The column reported today that the Commonwealth Bank planned to unleash “a buy-out frenzy for its listed office vehicle, Commonwealth Property Office Fund”.

In a statement posted to the ASX, Commonwealth Managed Investments Limited (CMIL), as responsible entity of both funds advised “it has not received any approach or proposal that would support this speculation”.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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