This article is from the Australian Property Journal archive
PRIVATE equity real estate company, MGPA, has paid $105.67 million for an office building in Perth.
This is the first asset for MGPA’s German fund focused on Asia-Pacific, MGPA Asien Spezialfonds.
The property was purchased after an off-market competitive process from a joint venture between the developer, Alcock Brown Neaves Group, and entities managed by Macquarie Group.
Completed in 2009 and 2010, The Optima Centre is A grade office building located at Herdsman Business Park in Perth and has a total net lettable area of 16,116 sqm over two buildings and includes 500 car spaces.
The properties are fully let, of which 83% is leased to the Western Australian government and the passing yield is in excess of 8.6% and the weighted average lease expiry is approximately 12 years.
MGPA’s Australia director Hamish MacDonald said the asset is particularly attractive as the first investment for the Asien Spezialfonds due to its high income yield from predominantly AAA rated covenants, long WALE, and ability to capture rental growth in one of the most exciting office markets in the region.
“The suburban markets of Perth offer a compelling alternative for tenants to the supply constrained traditional markets of the CBD and West Perth. Herdsman Business Park in particular is attracting occupiers due to its proximity to the CBD.
“We also see investment demand for high quality assets in the best suburban markets increasing as investors seek exposure to the burgeoning West Australian economy, being driven by the resource sector, leading to an attractive supply demand dynamic and therefore rental growth potential. We believe there is a disconnect between the high investment yields available in Perth and the potential for rental growth relative to other markets in Australia,” he added.
MGPA held the first close of MGPA Asien Spezialfonds in September 2012 with commitments of €85 million. The fund has a target equity capital of €500 million.
Property Review
