This article is from the Australian Property Journal archive
GE Real Estate has sold two office properties, located in Sydney and Brisbane, to Herbert Street Investments and AMP Capital Investors respectively.
The properties were originally acquired in 2002 as part of the 13 property National Australia Bank portfolio.
Located 100 Pacific Highway in St Leonards Sydney, the four level building is currently 100% occupied and has a net lettable area of approximately 3,245 sqm.
In 2005, GE RE refurbished and released the entire building within a three month period, following the liquidation of a major tenant.
In Brisbane, GE RE has sold 555 Coronation Drive in Toowong, Brisbane for $28.5 million.
The property will be added into the AMP Capital Investors Property Income Fund.
The property is currently fully leased to three tenants, including CSC Australia with naming rights, Kellogg, Brown & Root and Papuan Oil Search.
The building has a NLA of approximately 5,870 sqm and secured car parking for 178 vehicles.
GE RE upgraded this property to take full advantage of the strong Brisbane commercial leasing market and in 2005 renewed 50% of the leases with no downtime.
The property has been sold to AMP Capital Investors through Ken Lucht & Bruce Baker of Colliers and David Fowler of Knight Frank.
“From an asset management perspective, we are doing what we do best and that is prioritising our tenants needs, understanding the markets and where our properties sit in those markets and proactively managing the assets to maximise value,” GE RE’s director asset management SE Asia Paula Alvear said.
“We are constantly reviewing our assets in line with market conditions to ensure we are positioning effectively. For both of these assets, we’ve added value by refurbishing and repositioning, which has delivered the market a very solid investment based on an excellent tenancy profile.” She added.
Property Income Fund fund manager Michael Fisk said the acquisition represents good buying and improves the geographic and sector diversity of the portfolio.
“555 Coronation Drive is a great opportunity with all the hallmarks of the kind of asset we look for – quality tenants, outstanding location and significant yield potential,” he added.
The acquisition of 555 Coronation Drive takes the Property Income Fund’s total gross assets to $850 million.
The Property Income Fund, which now owns 41 properties, is a wholesale fund that focuses on small to medium sized commercial, retail and industrial properties valued between $10 million and $50 million.
“This latest acquisition is consistent with the fund’s strategy of sourcing good valued property assets located throughout Australia.” Fisk said.
GE’s director of investments Jason Kougellis the properties are great examples of GE’s strategy of buying, adding value and then divesting from assets to realise profits.
“GE has a proven track record for both on and off market deals as we have the ability to execute with certainty, complete confidence and cash. We will continue to pursue similar opportunities in all markets, individually or in one line, in the future.” he added.
GE still has two office buildings in Brisbane, 201 Charlotte Street and 260 Queens Street, a 16-storey and 24-storey property respectively.
