ABACUS DOUBLES ITS MONEY ON WORLD TRADE CENTRE SALE

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

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Operating the board collaboratively, efficiently and securely
Partner Content
'Digitisation' and 'digitalisation' are two words that are frequently t...
OnBoard
Advertisement

Related Stories

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Although Myer (ASX: MYR) has reported a strong period of trade in t...

Demand for local travel sees Camplify flourish despite lockdowns

Demand for local travel sees Camplify flourish despite lockdowns

Despite widespread lockdowns restricting movement across Australia,...

Consumer confidence bounces back after hitting 15-month low

Consumer confidence bounces back after hitting 15-month low

Australian consumer confidence rose 2.2 per cent last week after dr...

Zip confirms takeover discussions with US BNPL rival Sezzle

Zip confirms takeover discussions with US BNPL rival Sezzle

Buy-now pay-later company Zip Co (ASX: Z1P) made waves in the finte...