This article is from the Australian Property Journal archive
AN office building leased to the Office of State Revenue in Parramatta has been sold by Macquarie Office Trust for at least $35.4 million.
Chief executive Adrian Taylor said the sale is a continuation of the repositioning of the trust’s portfolio.
The Lang Centre is a 8,700 sqm, seven-level building and was purchased in July 1998 for $A27.7 million. The current book value is $A31 million.
The property is leased to the Office of State Revenue, who recently exercised their option to extend their lease to 2011. The sale process was managed jointly by Knight Frank and Colliers.
Settlement of the sale due in March 2008.
In addition, the trust has also announced the independent revaluations on seven Australian properties which produced an uplift of $A169 million and three United States properties with a further uplift of over $US75 million. As a result of the revaluations, the trust’s net tangible asset backing will increase by 9 cents.
A 23% or $A28 million increase in the value of the Argus Centre in Melbourne’s CBD was primarily driven by increased market rent assumptions and anticipated future market rent growth deriving from the strength in the Melbourne market.
And the NCR lease extension and increased market rents for North Sydney have contributed to the 18% increase in the trust’s North Sydney NCR House value.
Taylor said the trust is in an excellent position to capitalise on the continued strong underlying market fundamentals in Sydney CBD office properties which are anticipated to further drive rental increases.
“Our asset management capabilities in the Melbourne CBD market have continued to drive the trust’s Australian portfolio performance by taking all the Melbourne assets to an impressive 100% occupancy,” he concluded.
In the US, strengthening market rentals, coupled with prospects for continued growth has driven the valuation of Wachovia Financial Center in Miami by 34% ($US66 million). Acquired in October 2004, this asset has increased in value since its ownership by more than $US110 million (74%).
Australian Property Journal
