ABACUS DOUBLES ITS MONEY ON WORLD TRADE CENTRE SALE

MELBOURNE's World Trade Centre has sold for $267.5 million, having more than doubled in value since 2014.

Abacus Property Group (ASX:ABP), with joint venture partners KKR and Riverlee Group, has exchanged contracts for the sale of World Trade Centre in Melbourne CBD for $267.5 million.

Abacus and KKR purchased 70% of the property from Riverlee Group, owned by Clement Lee, in October 2014 for $120.4 million, valuing the entire property at $172.0 million at that time.

Abacus has a 17.5% interest in the joint venture.

Paul Henley of Knight Frank and Rob Anderson of JLL brokered the deal.

The management improved occupancy at the building from 90% to 99% since 2014.

The Thales lease of 8,600sqm was extended for a further seven years, in addition to the leasing of another 5,000sqm of space, and a capital works program that improved the NABERS green star rating of the property from 2.5 to 4 stars.

The new owners, an undisclosed group reportedly from Malaysia, will need to find a new major tenant for the building in 2020, when the Victoria Police move into a new headquarters on Spencer Street.

The Wolrd Trade Centre will yield an equity internal rate of return of more than 30%. Settlement is scheduled for June 2017.

KKR & Co is an New York Stock Exchange listed company with US$98 billion under management.

Abacus Property Group is trading steady this morning at $2.895 per share.

Business News Australia