This article is from the Australian Property Journal archive
THE Australian Unity Office Fund (AOF) has sold its 30 Pirie Street property in Adelaide for $73.0 million, after Telstra chose to end its lease of more than three decades.
Australian Unity Investment Real Estate Limited (AURIEL) as responsible entity of AOF announced that a conditional contract for the sale of the asset has been exchanged, with the sale price reflecting the independent valuation as at 30 June 2022 of $73.0 million.
Developed in 1987, the 23-level 30 Pirie Street, Adelaide has been occupied by Telstra for around 35 years before advising AOF it would not renew its lease at its February 2023 expiry.
AOF explored undertaking a repositioning and refurbishment of the property, including a significant value add capital expenditure program, before deciding disposing the asset was the greatest way to maximise value for unitholders.
“The sale of 30 Pirie Street maximises returns for unitholders and enhances AOF’s overall portfolio construction. The sale via a targeted off-market campaign follows the receipt of an unsolicited offer,” said Nikki Panagopoulos, fund manager at AOF.
“We are continuing to execute on AOF’s near term priorities, including maintaining leasing activity and progressing other asset sales where we are in exclusive due diligence and contract negotiation. Further updates will be provided to the market in due course.”
The purchaser, who has not yet been disclosed by AOF, is now documenting a sustainable financing package with a federal government agency.
Settlement is conditional on the finalisation of this financing documentation and is expected to occur before the end of the 2022 calendar year.
