This article is from the Australian Property Journal archive
MORGAN Stanley Real Estate has acquired a 50% stake in the Melbourne CBD’s 699 Bourke Street office tower, joining Mirvac as co-owners after the pair last year became co-owners of the nearby 664 Collins Street development and formed a logistics partnership.
The latest deal sees US investment bank TH Real Estate offload the interest for $102 million. AGL is the the building’s anchor tenants, sitting across 15,000 sqm – almost 80% of the building – on a decade-long deal running until 2023.
In July, Morgan Stanley Real Estate’s Prime Property Fund Asia picked up a 50% interest in 26,000 sqm 664 Collins Street office project from Mirvac for $138 million, at a yield of 4.97%. The building had secured accounting firm Pitcher partners and global oil and gas giant ExxonMobil as key tenants.
Mirvac and Morgan Stanley established the Mirvac Industrial Logistics Fund in August, seeded with two western Melbourne properties worth $65.5 million.
TH Real Estate had held its interest in the 699 Bourke Street since 2014, paying $74.5 million to Mirvac. Similarly, it sold its 20 Hunter Street building in Sydney’s CBD last year for $192 million, having purchased the A-grade 16-level office tower in 2013 for $86 million.
“Our portfolio focuses on quality, sustainable assets. It’s a testament to our acquisition strategy and development partnership that we have met our target returns so early in the life cycle of this asset,” Nick Evans, executive director and head of Australia, TH Real Estate said.
TH Real Estate is one of the largest real estate investment managers in the world with circa US$109 billion in assets under management globally.
Its Australian holdings include a half stake in 101 Miller Street and the Greenwood Plaza in North Sydney, as well as investments in Myer Bourke Street in Melbourne, and a 75% interest in Brisbane’s Mount Ommaney Shopping Centre.
In October, it established a commercial real estate debt business in Australia, based in Sydney.
Australian Property Journal
