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

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

Victoria hit with magnitude-5.8 earthquake, felt as far as Sydney and Adelaide

A magnitude-5.8 earthquake originating in Mansfield, Victoria ...

CBA, Antler lead $25m Series B raise for property management company :Different

CBA, Antler lead $25m Series B raise for property management company :Different

Motivated by its founders' desire to improve communication and ...

Airwallex now valued at $5.5 billion following oversubscribed Series E

Airwallex now valued at $5.5 billion following oversubscribed Series E

Fintech platform Airwallex today announced it has raised US$200 mil...

APA throws hat in the ring with bid for AusNet, beats Brookfield's proposal by $382m

APA throws hat in the ring with bid for AusNet, beats Brookfield's proposal by $382m

The race to take control of Melbourne-based AusNet Services (ASX: A...