This article is from the Australian Property Journal archive
Exclusive: Global property heavy-weight GE Real Estate has bought MFS’ office tower on 200 Queens Street in Melbourne for in excess of $90 million.
Market sources told PropertyReview.com.au, GE Real Estate gazumped Macquarie Bank’s unlisted Macquarie Direct Property Fund for the prized A-Grade office tower.
The 35-storey office tower has been on the market for the past couple of months, the property is situated near to Melbourne’s legal precinct.
Currently held in the MFS 200 Queen Street Melbourne Property Trust, MFS bought the building in 2003 from Western Australian investor Ralph Sarich for $78 million on a yield of 9%.
However, shortly after the purchase, two major tenants the Australian Broadcasting Authority and Director of Public Prosecution, occupying a total of 6500 sqm of space vacated the building.
It is the fourth major acquisition in recent months by GE Real Estate in Australia, which has been aggressively expanding its property in Australia.
Last month, the GE Real Estate bought 19 properties in Perth from Security Capital Corporation and Property Bank Australia for $200 million.
In March, GE Real Estate spent $95.1 million buying 81 St Georges Terrace in the Perth CBD for $23.5 million and the Westpac Building on 260 Queen Street, Brisbane for $71.6 million.
GE Real Estate and MFS neither confirmed nor denied the transaction, however, property sources told PropertyReview.com.au that GE Real Estate and MFS are in the final process of finalising the deal which is expected to be announced within the next few days.
By Nelson Yap
