CPA looks for better offer from Dexus PRESSURE is mounting on Dexus to lift its takeover offer for Commonwealth Property Office Fund (CPA) after the target revealed an increase in its net tangible assets on the back of a $60 million uplift in the value of its office properties. CPA yesterday said draft revaluations of 16 of its 25 office towers had resulted in NTA rising to $1.19 - a level exceeding a current offer from Dexus, which values the company at $2.7 billion based on an NTA of $1.155. Dexus has teamed with Canadian Pension Plan Investment Board to make its bid for the Commonwealth Bank-managed office landlord, which owns $3.8bn of office towers across Australia. The scrip-and-cash deal that values CPA's shares at $1.155 was made on October 10, when CPA's NTA stood at $1.15. Two weeks ago CPA announced that the revaluation of six properties at the end of the September quarter lifted its NTA to $1.16. The entity that manages CPA on behalf of the Commonwealth Bank, Commonwealth Managed Investments Limited, has already rejected the Dexus proposal, saying it did not provide a compelling value proposition. CMIL has left the door open for a higher offer from Dexus. Its offer for CPA and stake-buy came after Commonwealth Bank proposed internalising the management of CPA and sister trusts CFS Retail and Kiwi Income Property Fund and its wholesale property funds as part of its exit plan from its $15bn property platform. Dexus is yet to give any hint about whether it will lift its offer, although at its annual general meeting last week chairman Chris Beare said it would remain patient and measured with how it managed a takeover attempt. Maxim Asset Management fund manager Winston Sammut said he expected Dexus might sweeten its bid. "It's a means of showing that there's value in the stock that's over and above what Dexus has bid for," Mr Sammut said. It falls back on Dexus and anyone else who wants a go to effectively pay the right price, if they want to. Dexus's offer includes a cash component of 68c per CPA share plus 0.4516 Dexus shares for every CPA share. Dexus's shares stood at $1.04 at the time of the original offer, while CPA's shares were at $1.15 when the bid was made. Mr Sammut said the increased value of Dexus shares improved the proposition, but added there was no guarantee that the shares would hold at that level. He suggested an improved offer would probably include an increase to both the cash and the scrip components of the offer. CPA closed up 1c to $1.20. Dexus closed up 1.5c at $1.065.