AU takes another hit with office sale

The Beenleigh office (marked) cost Australian Unity $33.5 million in 2021.

Australian Unity has sold a suburban Brisbane office for an 11.4 per cent loss on its 2021 outlay but it will use proceeds to pay all debt for the fund it was held in ahead of what is expected to be a solid quarterly distribution.

Australian Unity sold an Osborne office for a modest loss on the 2020 outlay.

The Beenleigh office, 96-98 York Street, also known as The York, traded for $29.7 million to an as yet undisclosed buyer.

AU paid $33.52m as construction of the six storey, 4660 square metre asset was nearing completion.

That seller, Alder Developments, also the builder, secured a pre-commitment by the Logan City Council for an initial 10 years with two five year options.

Ground floor retail tenancies are presently for lease via Bromley Real Estate.

The property was held in the Australian Unity Office Fund which, prior to the Beenleigh sale, carried $10m in drawn debt.

“AOF’s priorities are to maintain active management an to deliver leasing and occupancy outcomes, progress refurbishment and repositioning opportunities and if appropriate, divest assets,” fund manager, Nikki Panagopoulos, said (story continues below).

Australian Unity sold a Richmond healthcare asset in March.

AU sheds another asset

Last October, AU sold a Department of Defence backed building in Adelaide’s Osborne for $46m – a slight drop on the $48.25m it outlaid three years earlier for the Diversified Fund.

For other trusts, the manager has recently seen better results divesting longer-held Melbourne assets including, in Richmond, a three storey office turned medical centre opposite Epworth Hospital and a distribution centre at Derrimut, in the west.

Beenleigh is about 34 kilometres south east of Brisbane’s CBD.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of