Bank of America Merrill Lynch may beef up its real estate investment banking team in an effort to boost its resources.
The bank is working for GPT Group on its $3 billion takeover bid of Commonwealth Property Office Fund.
Sources close to the bank suggested the group was considering hiring people to join its real estate team, reporting to its head Adrian Sheldon, as well as bankers for other teams, with more merger and acquisition activity expected next year.
GPT has hired the bank as a joint adviser with Fort Street in an effort to beat Dexus Property Group and the Canada Pension Plan Investment Board to buy the Commonwealth Bank's office landlord.
It is understood that Sheldon has been appearing with the bank's Australian chief, Kevin Skelton, on matters relating to the proposal.
Meanwhile, GPT is in talks to hire one of the target's former senior executives, John Dillon, and has also hired Macquarie Group real estate veteran Callum Bramah.
GPT is expected to trump the Dexus camp with a higher offer in the CPA contest, after Dexus last week sweetened the deal.
However, unlike Dexus and its Canadian partners, GPT is offering no payment to Commonwealth Bank for the management rights of the office fund.
The Dexus consortium and the bank announced a deal had been reached on Friday night under which $41 million would be paid for the fund's management.
However, the conditions of the deal include a clause that suggests either party could modify the agreement. It suggests that should Dexus and CPPIB need to once again raise its offer for the fund, the deal to pay $41m to CBA could be taken off the table.
CPA shares closed at $1.28 yesterday, 1c higher than the Dexus offer, suggesting investors are betting GPT would make a higher offer for CPA.