This article is from the Australian Property Journal archive
FUND manager EG has acquired the 2 Mill St tower in Perth for $79.05 million from Brisbane-based super fund Sunsuper.
The 12 level, A grade office building of 11,486 sqm is the second property secured for the open ended, diversified $800 million Australian Core Enhanced Fund (ACE) targeting office, retail and industrial assets.
The asset has been acquired with a weighted average lease expiry of 1.8 years and was offered to the market 70% leased to tenants including the Minister for Works, Chamber of Minerals & Energy and the Institute of Chartered Accountants, and with a potential full leased net annual rent of $7 million.
“This asset is perfectly positioned to benefit via a targeted refurbishment and leasing strategy as Perth experiences improving macroeconomic conditions,” fund manager Dan Farley said.
The tower is a short walk from Elizabeth Quay and close to the Perth Convention Centre.
EG ACE will be opened to further investment until June 2020, targeting up to an additional $500m of equity commitments.
Sunsuper bought the tower in 1997 for $35.6 million.
The transaction was brokered by Todd Schaffer of Knight Frank in conjunction with Aaron Desange of CBRE, and follows Singapore-based Redhill Partners taking ownership of the late Len Buckeridge’s BGC Centre in Perth for more than $100 million.
The A grade 20-storey tower at 28 The Esplanade has over 15,000 sqm of office space and sold with 87% occupancy and. 2.3 year WALE.
Earlier this year, Redhill picked up the former WA Police offices at 441 Murray St for $22 million and 45 St Georges Tce for $53 million, as well as the campus-style 18 Brodie-Hall Dr complex in Bentley for $18.25 million.
In Northbridge, on the city fringe, Warrington Capital Partners recently sold 1 William Square for $189 million.
