This article is from the Australian Property Journal archive
Trafalgar Corporate Group and its joint venture partner Laing O’Rourke are set to sell the Centenary Square development in Brisbane to Fortius Funds Management for $66 million.
The sale is on a “as is” basis and does not involve any ongoing obligations to the Fortius.
TPG and Laing O’Rourke jointly acquired the asset, as well as the existing corporate headquarters of Virgin Blue airlines and an adjoining development site in an off market transaction in December 2005 for $50.5 million.
The sale also includes the novation of a fixed price building contract with Laing O’Rourke.
The sale is a strong result for TGP delivering a development margin of 64% and an equity IRR of 69.6%.
“The sales price for the asset effectively represents the realisation of the anticipated development profits without undertaking any further significant expenditure or being exposed to any development risk,” TPG’s managing director Mark Davidson said.
“This sale demonstrates the group’s ability to create value from direct property without necessarily employing large amounts of capital or taking significant development exposure,” he added.
TGP will announce its FY2006 results on September 08, 2006 and will pay the final distribution of 15.4 cents per security.
By Adam Parsons
