Adia in the hunt for $6.7bn Australian property portfolio

The Abu Dhabi Investment Authority (Adia) is among the bidders for a US$6.7 billion Australian property portfolio.

The sovereign wealth fund is understood to be bidding with Dexus Property Group for the real estate being sold by Morgan Stanley’s Investa Property Group. Adia declined to comment and Dexus was not immediately available.

Blackstone Group and Brookfield Asset Management are also among the bidders, Bloomberg earlier reported citing unidentified people with knowledge of the matter.

Other bidders include LaSalle Investment Management with China Investment Corporation and Cromwell Property Group with Redefine Properties.

Rising rents and strong tenant demand have stoked interest in Australian commercial property, with office market transactions reaching record levels of A$17bn (Dh46.25bn) last year, according to JLL data. That drove prime yields in Sydney and Melbourne below 6 per cent for the first time since 2008.

Morgan Stanley Real Estate Investing said it planned to sell its holding in Investa Property Group in February.

Investa is one of the biggest players in Australian real estate investment, controlling assets worth more than A$8bn across residential, commercial and industrial property.

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