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Commercial & Industrial Property News Update
Australia - Landmark Sydney Office Building Sold To Asian REIT
September 24, 2012
MGPA Asia Fund III has acquired 6 - 10 O'Connell Street in Sydney for AUD 105.1 million.
Asian real estate investment trusts continue to seek deals in Australian real estate, with MGPA extending its search into the Grade B office market.
The firm has successfully acquired a landmark office building at 6 - 10 O'Connell Street in Sydney through a transaction valued at AUD 105.1 million.
The property, acquired on behalf of MGPA Asia Fund III, is a Grade B office building with 26 levels offering a combined total of 14,601 sq m of office space. There is also retail space available on the ground floor. In total, the building offers net lettable area of around 16,000 sq m.
With its Golden Triangle location - Sydney's most prestigious business district - the property is expected to increase in value and status.
"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," said John Saunders, Chief Executive Officer for Asia at MGPA.
"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.
Currently, the building is 92% occupied, and serves 38 office and six retail tenants.
Added Hamish MacDonald, Director - Capital Transactions, "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."
"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," he said.
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