Cromwell sells Brisbane HQ to Melbourne fund manager
Cromwell has sold a modernised Brisbane office for $108.5 million – an 8.1 per cent premium after adjustments to its book value.
The deal is with Melbourne based fund manager Wingate.
Over 20 floors, in the city’s Golden Triangle, the asset contains 13,352 square metres, with an average floorplate of 710 sqm; upper levels have north facing Eagle Street Pier and Brisbane River views.
About 125 metres from the General Post Office, the rectangular 1834 sqm block has development upside.
Part of the office is occupied by the vendor, as its headquarters, until 2024.
There are four more significant tenants including Secure Parking and Logicamms.
Cromwell acquired 200 Mary St from AMP in 2001, undertaking renovations since.
CBRE agents Peter Chapple, Bruce Baker and Tom Phipps managed the disposal.
Capital light funds management business planned: Cromwell
The 200 Mary St deal is part of a strategy to sell non-core assets and transition to a capital light funds management business, introducing funds.
“This sale further demonstrates Cromwell’s proven approach to active portfolio and asset management,” the company’s chief investment officer, Rob Percy, said (story continues below).
“We have created significant value through repositioning the asset and, with the high-quality tenants and long-term leases in place, now is the right time to capture significant upside and unlock the value Cromwell has achieved,” he added.
Buyer, seller reweight
Elsewhere, Cromwell has agreed to sell the Village Cinema Centre in Geelong for $19.775m and the TGA complex in Symonston (a primarily industrial southern Canberra suburb near the NSW border and Queanbeyan), releasing a total of $140m in capital which will be used to reduce gearing before reinvesting.
It has also recently purchased office investments for its Direct Property Fund – including in Brisbane’s Queen St, at #100 (for $184.7m) and #545 ($117.5m).
In April the group, also for that trust, outlaid $81.35 for Chesser House, in the Adelaide CBD.
Like 545 Queen St, the South Australian property recently underwent a major renovation.
For Wingate, the deal comes three months since it paid Mirvac $52m for a 589-bay car park investment at The Sebel Quay West complex, in Sydney.
Last May the Melbourne fund manager, with Azzura Investments, sold Byron Bay’s Mercato on Byron complex, and a hotel development site next door, for c$120m to a consortium including Pelligra Group the United Cinema owners, the Mustaca family.
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