This article is from the Australian Property Journal archive
AXA Investment Managers has helped the Korean Teachers Pension Fund enter the Brisbane market, by closing its $205.5 million acquisition of ISPT’s Green Square Brisbane South Tower in Fortitude Valley.
The 505 St Pauls Terrace property was purchased by AXA’s local arm, Eureka Real Assets on behalf of the fund, and marks the first foray by Korean institutional capital into the Brisbane office market.
The landmark deal for the five-storey, 17,618sqm building also features the heftiest price tag paid for an asset in the market since the beginning of last year. It comprises large floorplates ranging from 2,000sqm to 4,5000sqm, and sold with a 10.57-year WALE, leased to the administration offices of the Brisbane City Council until 2027.
AXA IM – Real Assets global head of Asia Frank Khoo said the transaction validates its decision to open its first office in Seoul, South Korea in 2015.
“The size of this acquisition and credibility of the client represents a significant milestone in the pan-Asian expansion of AXA IM – Real Assets and wider global strategy of establishing a strong local presence in new geographies. This transaction is an illustration of our ability to offer our Asian clients a wide range of investment opportunities in Asia.
“With the growing appetite for international investment in quality Australian real estate now stretching beyond the traditional confines of Sydney and Melbourne, we are well placed to find value for our clients in new locations, in the right building, with the right tenants.” Khoo said.
Colliers International agents Tom Barr, Don Mackenzie and Tom Barr negotiated the sale at a 5.77% market yield and initial yield of 6.4%, and $11,644 per sqm. They said 16 bids were received for the property, including domestic interests and other offshore parties, from Asia and Germany.
Australian Property Journal
