Asian Property Fund acquiring Landmark Sydney Office Building for AUD 105.1 million
While MGPA extend its search into Grade B office market, Asian real estate investment trusts continue to seek deals in Australian real estate.
A transaction valued at AUD 105.1 million,MGPA Asia Fund III has successfully closed the deal and acquired a landmark office building at 6 – 10 O’Connell Street in Sydney.
With retail space available on the ground floor, the property is a Grade B office building with 26 levels – a combined total of 14,601 sq m of office space. In total, the building offers net lettable area of 16,000 sq m.
Sited in Sydney’s most prestigious business district, also known as the Golden Triangle location, the property is expected to increase in value and status.
John Saunders, Chief Executive Officer for Asia at MGPA said: “ This B-Grade property is located in the prime core precinct of Sydney’s CBD, an area which we forecast will maintain its premium standing.”
“The area has had strong leasing history and we see this acquisition as a wonderful opportunity to do what MGPA does best, repositioning a lower grade asset in a great location to grow income and drive value,” he added.
At the moment, the building is 92% occupied, serving 38 office and six retail tenants.
Hamish MacDonald, Director of Capital Transactions said: “We are planning to invest in a substantial refurbishment and we will be focussing on the smaller occupiers, currently less catered for in the core precinct of Sydney, and this ‘buy fix’ transformation is at the heart of MGPA’s Fund strategy.”
He added, “We see significant opportunities in major cities in Australia for well-located B-Grade properties which are at a widening discount to their surrounding Grade A buildings.”
The news of this transaction comes just days after MGPA announced a first close of its Asien Spezialfonds vehicle on S$134 million. In contrast to MPGA Asia Funds I, II and III, which have all focused on higher-risk and more labour-intensive opportunities, this fund marks a departure from the investment firm’s previous real estate vehicles as it is a yield-focused core-plus product.
Interested to learn more about property acquisitions? You can set out to gain more insights in this industry by visiting Real Estate Investment World Asia 2013. It will be taking place from 25 – 27 June 2013 at Marina Bay Sands, Singapore. Visit www.reiwasia.com or download conference prospectus for more information.
No hay comentarios:
Publicar un comentario