This article is from the Australian Property Journal archive
Adelaide landmark 55 Currie Street has finally sold to Aspen Group for $66.98 million after the recent purchase of the property by WRF Property Limited was aborted.
The MTAA owned building was to be sold to WRF Property Limited’s X-One syndicate for the same price, however, the X-One syndicate collapsed with deals worth more than $94 million shelved and a listing on the struggling Australian Pacific Exchange listing abandoned.
To purchase the Adelaide icon Aspen Group has raised $50 million through a conditional placement at a final issue price of $1.50 represents a 3.2% discount to the adjusted five day volume weighted average price and prior day close. The remainder of the purchase price will be made up with cash.
Aspen managing director Angelo Del Borello said the capital raising will strengthen the group’s balance sheet and at the same time reduce gearing to 32.7%.
He believes it will provide a strong platform on which the Aspen can continue to pursue growth opportunities in both asset and funds management opportunities.
55 Currie Street is a modern 12 level office building located in the heart of the Adelaide CBD.
Constructed in 1988 to meet Commonwealth Government design standards and as such boasts a strong tenancy profile of predominately government departments. Key tenants include the Department of Immigration, Multicultural and Indigenous Affairs, the Australian Bureau of Statistics, Department of Family and Community Services, Australian Federal Police and Centrelink.
The property provides 25,655 sqm of net lettable area which is complemented with 96 basement car bays, a 100 seat theatrette, and conference facilities. A unique feature of the property is its large floor plates which range from 1,500 sqm to 2,600 sqm.
“The acquisition provides both an attractive initial yield of 8.54% based on current net income with the opportunity to increase this to in excess of 9.50% on a fully leased basis.”
Aspen’s property portfolio now stands at $287 million while total funds under management increase to in excess of $600 million.
Del Borello said 55 Currie Street is expected to be earnings accretive in FY07.
“We are delighted to have acquired a high quality office property which complements the existing portfolio and is in line with the Group’s growth strategy of increasing assets under management to deliver greater recurring earnings,” Del Borrello concluded.
Settlement is due to occur on 3 July 2006.
By Nelson Yap
