This article is from the Australian Property Journal archive
CANADA's Public Sector Pension Investment Board (PSP Investments) has teamed up with Charter Hall's Core Plus Office Fund to buy the Gasometer 2 office development from FKP Property Group.
The sale comes after FKP pulled the plug on the sale of Gasometer 1 to Cromwell Property Group in November last year.
The investment is small fry for PSP Investments which yesterday simultaneously bought German builder Hochtief’s airport interests in Athens, Budapest, Duesseldorf, Hamburg, Sydney and Tirana for 1.1 billion euros.
The $180 million development is the stage 3 of the $1.1 billion masterplanned Gasworks community at Newstead Brisbane. It is currently under development and upon completion the 15 storeys building will comprise approximately 24,800 sqm of space including 1,056 sqm of retail space. The Bank of Queensland has committed to 12,700 sqm of the building’s office space on an initial 12 year term and will also occupy approximately 45% of the retail space, when the building is completed in late 2014.
Charter Hall’s joint David Harrison said the acquisition is in line with the group’s strategy of raising and deploying wholesale capital into core real estate opportunities.
FKP’s executive chairman Seng Huang Lee said the sale provides the group with an early recognition of development profit from Gasometer 2 and allows FKP to reinvest capital into future stages of Gasworks ahead of schedule.
Separately, FKP will acquire the remaining units in Core-Plus Fund Two at the end of May 2013 at a 17% discount to NTA and as a result will have no exposure to commercial and industrial external property funds management.
“This is consistent with FKP’s strategy of streamlining its business lines and follows the acquisition of the remaining units in Core-Plus Fund One.
“This acquisition is in line with our strategy of simplifying our business by allowing management to focus on our market leading retirement portfolio and delivering our substantial development pipeline.” Lee said.
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