This article is from the Australian Property Journal archive
Investa Property Trust has sold its decade old investment in the Melbourne CBD for $126.5 million to two external funds managed by the group.
The property at 485 La Trobe Street will be jointly purchased by the Investa Commercial Property Fund and the Investa Enhanced Fund.
485 La Trobe Street is an A-grade property and comprises two office towers linked by a six-storey glass atrium and lobby.
The main tower was completed in 1990 and comprises a 21 level office building with frontage to Little Lonsdale Street. The second tower comprises a 10 level office building. The total NLA is 34,045 sqm with 212 basement car bays.
The property is currently tenanted by CGU, Telstra and Australian Bureau of Statistics.
This is second time the property has changed hands in almost a decade. The property was sold by CGU in July 1998 for $84.7 million to the Westpac Property Trust.
In December 2000, the Westpac Property Trust was sold by the Westpac Bank and restructured into its present day entity, Investa Property Group.
Investa’s group executive of internal funds Campbell Hanan in August 2006 Investa announced that it intended to pursue targeted acquisitions and divestments of its Investment Portfolio, which would reweight the portfolio in accordance with its asset allocation strategy.
“This sale down-weights the Investment Portfolio’s exposure to the Melbourne market in accordance with that strategy.” he added.
Investa’s group executive of external funds Bill Grounds said the acquisition fits the value-add strategy of both funds in that both ICPF and IEF have limited exposure to the Melbourne market.
“As well as providing geographic diversification for the funds, Investa’s leasing expertise will enable us to enhance the value of the property with the impending relocation of major tenant, CGU, in 2009,” he concluded.
The sale is scheduled to complete in April 2007.
Australian Property Journal
