This article is from the Australian Property Journal archive
DOMESTIC and international high-net-worth investors have tipped in $70 million to MA Financial’s sole-asset fund for the Allendale Square office tower in Perth, which it acquired alongside Centuria for $223 million.
Funds managed by MA Asset Management and Centuria have just settled on the purchase, a counter-cyclical play with the new owners eyeing off repositioning opportunities for the A-grade asset.
Matthew Lane, managing director in real estate asset management at MA Financial, said the firm was pleased with the breadth of investor appetite for the fund in a challenging environment where investors are being discerning on where they invest.
“Allendale Square is a quality asset – it is in the heart of Perth CBD in close proximity to the transformational $2.5 billion Elizabeth Quay waterfront and is well positioned to capitalise on the demand for quality office space in Perth,” Lane said.
The building is 15% vacant and has near-term expiries for a 5.8-year weighted average lease expiry, providing an opportunity for the joint venture parties to generate lease repositioning upside.
“Investors will benefit from an attractive target distribution and an asset which will be actively managed and re-positioned to achieve potential capital growth,” Lane said.
Some $62 million worth of refurbishment works have been put into the 31-storey office building at 77 St Georges Terrace in recent years, which has 25,908 sqm of office space and 2,745 sqm of food, beverage and non-discretionary retail space below the tower.
While Perth has the highest vacancy rate of the country’s major CBD markets at 15.8%, according to the Property Council, it also has the highest occupancy rate.
