MELBOURNE: Frasers Property Australia has exchanged contracts with GPT Wholesale Office Fund (GWOF) to sell a 50 percent share in 2 Southbank Boulevard, one of Melbourne’s most highly regarded prime office towers, for A$326.2 million.
The gross sale price represented an initial yield of 4.8 per cent and settlement is due late March, a statement issued to Singapore Exchange (SGX) noted.
The decision to sell 2 Southbank Boulevard at Freshwater Place follows the high-quality repositioning of the building and recent re-leasing of more than 22,000 sqm by Frasers Property with co-owner GPT Wholesale Office Fund.
GWOF exercised its pre-emptive right to purchase the interest in the A-Grade office building. The premium grade building comprises 55,000 sqm of prime office space in one of Melbourne’s most popular locations and is leased by a diversified, high quality group of tenants including iconic global brands Apple, Microsoft, CUB, WPP and Kraft Heinz.
Rod Fehring, CEO for Frasers Property Australia, said, “The recently completed repositioning and re-leasing project has been an outstanding success, with approximately 22,000 sqm leased at new rental benchmarks for the asset. Frasers Property has divested its interest in the asset as part of our ongoing capital management program,” he said.
Chamoun Malki, General Manager, Investment Property for Frasers Property Australia, added, “We are very proud to have developed and been associated with 2 Southbank Boulevard and the broader Freshwater Place precinct over more than a decade. This asset has been a consistent performer within our portfolio and it offers highly attractive investment characteristics, including a WALE of almost six years and a commitment level of 98 per cent by area.”
Frasers Property developed the building in 2005 and has retained a 50 percent ownership interest, providing active asset management and continual pro-active and preventative maintenance, including enhancing the asset’s environmental performance.
This continual refinement has resulted in 2 Southbank Boulevard achieving a 6 Star Green Star Performance rating – one of only six buildings in Australia to achieve this rating. It is also accredited with a 5.5 Star NABERS building energy rating (with green power) or 4.5 Star NABERS energy rating without.
Frasers Property Australia is one of Australia’s leading diversified property groups and is the Australian division of Frasers Property Limited (FPL). FPL is a full-fledged international real estate company and one of Singapore’s top property companies with total assets of S$30 billion as at 31 March 2018.[the_ad id=”31605″]