The shareholders holding a majority of shares in Property Exchange Australia Limited (PEXA) have accepted the joint bid made by Commonwealth Bank of Australia (CBA) with Link Administration Holdings Limited and Morgan Stanley Infrastructure Partners.
The deal will allow CBA to increase its ownership stake from 13.1% to around 16% in PEXA, which is Australia’s online property exchange network.
As per terms of the deal, which is subject to multiple conditions, CBA will invest a further $50m in PEXA, bringing total investment in the company to around $100m.
The deal is in line with CBA’s strategy to focus on its core banking businesses, in addition to creating better bank for its customers.
CBA CEO Matt Comyn said: “Having been a key stakeholder in PEXA since its inception in 2011, today’s announcement represents our continued commitment to support the property industry as it transitions towards an innovative, fully digital, settlements process that aims to provide improved experiences for customers.”
Established in 2010, PEXA will support the Council of Australian Governments’ (COAG) initiative to deliver a single and national e-Conveyancing solution to the Australian property industry.
PEXA supports its members such as lawyers, conveyancers and financial institutions to lodge documents with land registries and complete financial settlements electronically.
The nework’s crucial stakeholders include state governments and major banks, and it currently has multiple subscriber policies and agreements in place.
PEXA is regulated by the registrar in each state of the country. The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) was formed to facilitate and coordinate a national approach for the development and ongoing maintenance of the regulatory framework for e-conveyancing in Australia.
ARNECC includes registrar of each state and the NT and its primary function is advisory. Registrars from each state and territory will take responsibility for regulation in their own jurisdiction.
PEXA works with entities such asElectronic Conveyancing Group (ECG), which includes Australian Bankers’ Association, Australian Institute of Conveyancers and Law Council of Australia.
As representatives for their respective industries, PEXA and ECG work together in creating ongoing improvements and efficiencies via representative subscriber participation agreement.