This article is from the Australian Property Journal archive
THE Duke of Westminster's property company, Grosvenor Group, has sold its 50% share in 400 George St in Brisbane's CBD for $198.5 million.
As previously reported by Property Review, Grosvenor has sold the interest to South Australia’s Motor Accident Commission, which has trumped the big players such as Dexus Property Group, Investa Property group and Andrew Roberts’ CorVal Partners for the prime asset.
Grosvenor has owned a 50% interest in the asset for seven years and developed it in conjunction with Leighton properties.
The sale price reflects a cap rate of approximately 6.9%, the other half stake is owned by HSBC Trinkhaus.
Grosvenor fund management director Mervyn Howard said the growing strength of investment demand for high quality assets in Brisbane gave the group an opportunity to realize some gains.
Completed in 2009, the 34-storey A grade office tower comprises 43,956 sqm of space including three lower levels of retail as well as a childcare centre. Key tenants state and federal government departments, Cooper Grace Ward, Newcrest Mining and Microsoft.
Jones Lang LaSalle represented Grosvenor in the sale of 400 George Street.
The sale is part of the Grosvenor’s divestment strategy after it unsuccessfully attempted to spin the property into a real estate fund.
Grosvenor put the property on the market in November last year, and there was speculation that its joint venture partner HSBC Trinkhaus might also consider selling its share or buyout Grosvenor.
The sale means Grosvenor has cashed in almost $450 million worth of assets in the last 16 months, including the sale of Eclipse Tower in Parramatta to the REST Industry Super fund for $167.5 million and Sir Joseph Banks Corporate Park to Dexus Property Group for $76.8 million.
Property Review
