GPT Wholesale Office Fund seizes full control of Southbank office following $342 million bid

2 Southbank Boulevard, Southbank.

Frasers Property Australia has sold a half share interest in a Melbourne city-fringe office building to co-owner, the GPT Wholesale Office Fund (GWOF), for $342 million.

The gross sale price for the balance of 2 Southbank Boulevard, Southbank, represents an initial yield of 4.81 per cent, FPA’s executive general manager Reiner Otter said.

Settlement is expected before the end of this month.

“The recently completed re-positioning and re-leasing project has been an outstanding success, with approximately 22,000 square metres leased at new rental benchmarks to high quality tenants including iconic global brands Apple, Microsoft, CUB, WPP and Kraft Heinz,” Mr Otter said.

The tower, near the banks of the Yarra River, and walking distance to Flinders Street Station, rises 38-storeys and contains 53,500 sqm of lettable office area.

The lowest eight floors of the A-grade building are configured as podiums. At ground level, 2 Southbank Boulevard includes a piazza surrounded by retail occupants, including a supermarket.

GWOF valued its half share at $279.9 million last June. At the time, the office was 7.4 per cent vacant. The fund, with assets under management of close to $8 billion, had a pre-emptive right to buy the office when FPA wanted to sell.

FPA, via its predecessor, Australand, developed 2 Southbank Boulevard 14 years ago. GWOF acquired its half-share interest in 2014.

For several years until 2017, accounting firm PwC was a key tenant of the building, also securing signage rights.

A co-working office space on the 19th level of 2 Southbank Boulevard.

Marketed to office users as a premium building, 2 Southbank Boulevard offers sophisticated end-of-trip facilities, including daily towel servicing, lockers and bicycle storage, childcare and a concierge team.

It also offers communal meeting spaces, including Cliftons Freshwater Place, which offers high-speed internet, break-out areas and food providers.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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