This article is from the Australian Property Journal archive
The unlisted Trinity Property Trust is expected to pocket at least $20 million from the sale of the Medicare Building on Bourke Street, Melbourne.
TPT bought the 7,400 sqm office building in 1999 for $9.8 million.
Medicare is currently the major tenant on 460 Bourke Street, and has a 12 month lease for 2007 on the property.
Trinity’s chief executive Ben McCarthy said placing the property on the market to take advantage of the current revival in Melbourne’s office market is in the best interest of TPT unit holders.
“The 1970s era building will appeal to investors who are keen to capitalise on the current upturn in Melbourne’s office market.
“If we think the best interests of unit holders are served by a sale then we will sell.
“If the building does not realise an appropriate gain for TPT unit holders we will value add in different ways,” he added.
Trinity has appointed selling agents Jones Lang LaSalle and CB Richard Ellis to conduct an expressions of interest campaign.
Trinity is continuing to explore other property and development opportunities in the Melbourne and Victorian market and recently bought Melbourne’s Mulgrave Business Park for $33.35 million, which will be jointly owned by the listed Trinity Consolidated Trust and the unlisted TPT on a 50-50 basis.
“We have a number of strong prospects that are progressing through our pipeline and the sale of Bourke St is aligned with Trinity’s policy of actively managing its portfolio in the best interest of investors,” McCarthy said.
Earlier this month, Trinity Consolidated bought out private Queensland-based developer Consolidated Properties for $25.35 million in a scrip for scrip merger.
By Adam Parsons
