This article is from the Australian Property Journal archive
ALLCO looks to be on the path of solving its debt troubles with the sale of its stake in Sydney's World Square complex likely to be wrapped up by the end of this week.
The Allco Wholesale Property Fund is set to pocket around $450 million from the sale of two properties, a 50% stake in World Square complex and the Neeta City shopping centre, a neighbourhood shopping centre at Fairfield, in Sydney’s west.
The two assets are being sold separately.
The World Square complex is owned jointly by the fund and Multiplex, comprising a three level 16,300 sqm of retail centre, the 55 level, 62,250 sqm Ernst & Young Centre office building at 680 George Street and a 5,748 sqm office property at 50 Goulburn Street, as well as 547 car spaces.
There is also a Hotel Ibis on the site, which is owned by the Schwartz Family Company.
As for the Neeta centre, the fund had only bought it in June last year for $86 million.
Meanwhile, AWPF is tight lipped on the identities of the buyer/s. But it is believed the buyer/s will unlikely be listed property trusts because most are tightening their purse strings and unwilling to borrow money with higher interest costs.
It is likely the buyer/s will likely be cashed up private local and/or international investors.
AWPF has so far sold 222 Exhibition Street in Melbourne in June last year for $160 million to AMP Capital Investors.
The World Square and Neeta sales will provide relief for the fund’s major investor, Allco Commercial REIT, listed on the Singapore Stock Exchange.
Allco REIT is looking to sell its interests in several Australian properties worth around $480 million.
Up for grabs is a 50% stake in Central Park in Perth, which at 51 levels is the tallest building in the city and also provides 66,500 sqm of space – last valued at $324 million and the Centrelink headquarters in Canberra, last valued at $108.8 million.
Australian Property Journal
