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Two private equity funds managed by Singapore-based TrustCapital Advisors (TCA) has disposed of five office properties along Australia’s eastern seaboard for a total of AU$727.55 million (S$749.8 million), revealed marketing agents CBRE and JLL on Thursday (16 November).
In particular, AEW bought 50 Pitt Street in Sydney for AU$165 million (S$170.05 million). The 9,873 sq m B-grade office block had undergone an AU$20 million renovation in 2008 and occupies a super prime corner in the central business district (CBD).
Melbourne’s 469 La Trobe Street was acquired by an AMP Capital separate account client for AU$160.5 million (S$165.41 million). The recently refurbished 19,864 sq m tower houses a diverse mix of tenants and is fully leased.
In the same city, 850 Collins Street and 575 Bourke Street were purchased by PA Realty, a joint venture between MEC and CLSA Real Estate, with the 17,337 sq m A-grade Collins Street building in the Docklands precinct changing hands for AU$156.1 million (S$160.87 million). On the other hand, the recently refurbished Bourke Street office tower in the CBD’s western core area was snapped up for AU$140.2 million (S$144.49 million).
Finally, 150 Charlotte Street in Brisbane’s Golden Triangle was taken up for AU$105.75 million (S$108.98 million). The 11,011 sq m tower is occupied by several major tenants such as Rio Tinto and Boeing Defense Australia.
“The sale of the TCA portfolio exemplified the strength of the markets across the eastern seaboard of Australia. It also showed the depth of interest from both local and international capital sources. With a significant amount of capital bidding on these assets remaining unsatisfied, we expect to see pricing continue to firm for the rest of the year and into 2018,” said Mark Coster, CBRE’s Senior Managing Director for Capital Markets.
“The portfolio saw strong demand from both portfolio and individual asset buyers. The end result was four individual buyers acquiring five of the assets, three of the parties were offshore parties who have only just commenced investing in Australia,” added JLL Head of Office Investments, Rob Sewell.
This article was edited by Keshia Faculin.
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