This article is from the Australian Property Journal archive
THE GPT Wholesale Office Fund confirmed it has bought a 50% interest in Australand's 28 Freshwater Place in Melbourne.
As previously foreshadowed on Australian Property Journal, GWOF has also simultaneously entered into a development agreement with Australand to build a new 34,000 sqm 24 level A-Grade office tower designed to 4.5 star ABGR and 4 Star Green Star to be completed in late 2008.
The asset will also include 248 car spaces and associated retail and storage spaces.
The building forms the second stage of Australand’s Freshwater Place office complex. GPT has paid for $12.5 million for its stake and upon completion, 28 Freshwater Place is expected to have an end value of approximately $115 million reflecting a first year yield of 6.0%.
GWOF’s fund manager Martin Ritchie said the acquisition further diversifies GWOF’s exposure in Melbourne and positions the fund to deliver space in a market which is currently experiencing an undersupply of A-Grade office accommodation.
On completion of the development, GWOF will have ownership interests in a portfolio of 12 office properties with a value of $2.8 billion.
The acquisition would be initially funded with debt.
Australian Property Journal
