This article is from the Australian Property Journal archive
MACQUARIE Office Trust has sold an Adelaide office building for $49 million after buying it 13 years ago for $44.9 million.
MOF’s chief executive Adrian Taylor said the sale of Naylor House is one of the largest commercial office transactions in Adelaide over the past 12 months.
The price paid represents a $3 million discount to the December 31 2008 book value. The sale delivered an 11.2% return since its acquisition, with all net proceeds from the sale being used to repay debt.
Naylor House is a five level 17,138 sqm commercial office building in Adelaide CBD. The building has 3,000 sqm floor plates and comprises a ground floor and four upper levels of office accommodation along with a basement level providing 113 secure car spaces.
Taylor said in addition to the successful disposal of the Wachovia Financial Center in Miami in December 2008, is a significant achievement given the challenging economic climate.
“The trust intends to make further selective asset sales across the portfolio with the aim of closing the gap between the current unit price towards the value of the trust’s underlying assets.
“Proceeds from asset sales will be used to increase liquidity and reduce debt,” he added.
The trust has also signed a major lease at Pasadena Towers in California.
Tokio Marine Management, Inc, manager for the US insurance operations of Japan’s oldest and largest property and casualty insurer, have extended their commitment at Pasadena Towers for nearly 60,000 sqft until 2025.
The lease represents approximately 13% of net lettable area within the property, with rent reverting positively to market levels. The new lease terms have increased the weighted average lease expiry of the property from 2.6 years to 5.9 years and were agreed 9.5 months ahead of expiry, demonstrating the trust’s ongoing commitment to customer retention. The lease represents 1.2% of net income within the US portfolio and improves the US portfolio WALE from 5.0 years to 5.2 years.
Australian Property Journal
