This article is from the Australian Property Journal archive
INVESTA Office Fund has sold the Royal Mint Centre at 383 La Trobe St Melbourne for $70.7 million, reflecting a 31% premium to book value.
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The four-level office building has a net lettable area of 9,679 sqm and is fully leased to the Australian Federal Police until 30 June 2017, on a 2,845 sqm site.
IOF fund manager Ming Long said the site`s flexible provisions within the planning framework allow for a number of uses, and these attributes help realise a price considerably higher than the book value.
The sale is 2 cents accretive to NTA.
She added that Investa sought out potential buyers looking to undertake a residential or mixed-use development on the site.
“Investa continues to be focused on maximising returns across the IOF portfolio, including leveraging opportunities to capitalise on alternative use value.
“The sale of 383 La Trobe St for $70.7 million represents a land value of $24,850 per sqm – an outstanding result that crystalises NTA uplift and positions IOF strongly to take advantage of future acquisition opportunities with higher risk adjusted returns,” Long said.
Settlement is on a deferred basis of between 12-18 months from the date of exchange.
Australian Property Journal
