This article is from the Australian Property Journal archive
THE Australian Unity Office Fund has finalised the sale of a relatively brand new office building in Brisbane’s south, for $29.7 million, which is below the price it paid just three years ago.
AOF sold the asset at 94-96 York Street Beenleigh in January this year after more than two years on the market.
Net sale proceeds have been used to repay all $10 million of AOF’s drawn debt and fund the June 2024 quarter distribution, with the balance held as cash.
The property has been on the market for two years after Aliro Group withdrew its $570 million takeover bid for AOF.
The office building is relatively brand new, it was completed in 2021. The seven-level, A-grade building has a total net lettable area of 4,661 sqm and 50 car parking spaces, and is home to Logan City Council.
The sale price is below what AOF paid in 2021 when it bought the office for $33.52 million.
This sale comes after AOF sold 150 Charlotte Street earlier this year for $64.5 million, which was above the book value of $60 million.
However the sale price represented a hefty capital loss for AOF, which paid $105.75 million in 2017 when it acquired the Brisbane CBD office building from Singaporean fund manager TrustCapital Advisors.
On the other hand, the sale was a significant capital gain for the Singaporean group, which bought the building in 2012 for $56 million from Stockland, which had purchased the finished development from Walker Corporation for $54 million a year earlier.
Meanwhile Australian Unity recently announced an entitlement offer to raise $75 million as part of its ongoing capital management strategy.
Australian Unity, through its Australian Unity Office Fund, has lodged plans for a 68-storey build-to-rent tower at its 2-10 Valentine Avenue site in Parramatta, where it has been exploring its options for some time.
The Beenleigh and Brisbane office transactions leave only one office building remaining for sale. AOF is in due diligence with a purchaser at a St Kilda Road property in a deal that is likely to reflect something close to the assets $70 million book value.
