This article is from the Australian Property Journal archive
ING Office Fund has returned to the Perth office market with the purchase of Wellington Central for $81.5 million.
As previously reported on Australian Property Journal last week, the Department of Immigration and Citizenship has recently committed to lease the building for 10 years from completion, scheduled to be March 2009.
The property is being developed by ING Real Estate Development Australia and the Lewis Land Group.
The property is being acquired by the fund on a net initial yield of 6.25%.
The purchase follows the fund’s sale of 1 Adelaide Terrace in July this year for $87 million on a passing yield of sub 5%.
IOF’s chief executive Tino Tanfara said Wellington Central represents an ideal opportunity for the fund to re-enter the Perth market with a high quality asset, in a core office precinct, with an attractive growth profile and at a superior yield.
“The Wellington Central development will leverage the development capability of ING Real Estate in Australia in collaboration with Lewis Land, to create exceptional office accommodation that will carry a minimum 4½ star Australian Building Greenhouse Rating,” he added.
Wellington Central is located at 836 Wellington Street, West Perth and features eight levels of office accommodation over 11,906 sqm of lettable area in addition to three levels of car parking comprising 139 car bays.
The transaction will be funded progressively from the sale proceeds of 1 Adelaide Terrace throughout the construction period.
Australian Property Journal
