This article is from the Australian Property Journal archive
TISHMAN Speyer Office Fund has bought a stake in an A Grade office building in Orange County, California.
At the same time, TSO has earmarked its Plaza East building for sale.
TSO has bought a 45.9% interest in 3 Imperial Promenade worth $US38.1 million ($A45 million). The new property is a 246,800 sq ft building located in the high growth Orange County market and is situated in MacArthur Place, a 65 acre mixed use development.
Tishman Speyer Australia’s chief executive Tom Feldstein said the acquisition continues to reposition the portfolio towards high quality assets with higher expected total returns located in Tishman Speyer’s core markets.
Meanwhile, TSO is marketing Plaza East located in Milwaukee, Wisconsin for sale.
The proceeds of the sale will finance the acquisition of 3 Imperial Promenade through a tax free exchange.
Plaza East was acquired at the time of TSO’s Initial Public Offering in December 2004, through TSO’s interest in Prime Plus for $US45.0 million.
The sale process for Plaza East is underway and has recently been enhanced through significant leasing activity, most notably the signing of a 23,000 sq ft, seven year lease with Associated Bank for the second floor, which had been vacant since acquisition. As at December 31, 2006 the book value of Plaza East was $US58.9 million.
Feldstein said recent leasing success in Milwaukee has allowed the fund to pursue a more deliberate sales strategy.
“We are confident that we can secure a buyer for Plaza East on attractive terms as the exchange property for 3 Imperial Promenade,” he added.
The purchase of 3 Imperial Promenade by the Exchange Accommodation Titleholder is expected to settle by June 28, 2007.
Australian Property Journal
