Investec seeks $90m for Fortitude Valley tower
The listed Investec Australia Property Fund is bringing a Fortitude Valley office block to market with hopes of reaping more than $90 million, as investor interest in the city surges.
The 11-storey office complex at 757 Ann St, Fortitude Valley, is expected to appeal to core-plus investors and is part of the vehicle’s strategy to recycle capital.
Cushman & Wakefield’s Mike Walsh and Peter Court are handling the campaign, which is tipped to draw interest from domestic and offshore institutions, funds and syndication groups.
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Completed in 2014, the building comprises 9422sqm of A-grade office space and is fully leased with a weighted average lease expiry of about five years.
The property’s strong income profile is supported by the anchor tenant, technology company Asea Brown Boveri.
The building sits on a corner position on Ann Street, one of Fortitude Valley’s main thoroughfares, and Morgan Street. Rooftop bar Bar Eleven also is on the top floor.
Cushman & Wakefield research found that vacancies in the area had dropped from 14.2 per cent to 12.1 per cent in the six months to the end of June.
Court says the entire commercial component of the asset is structured on a net lease basis, providing smooth, predictable cash flow for investors.
Walsh says 757 Ann St tower was designed by Nettleton Tribe and has no significant short-term capex requirements.
The Investec fund picked up the tower from Office Park Developments for $65.5 million in 2014.
The Investec vehicle has also been buying and last month purchased an industrial property portfolio and completed a placement. It bought three industrial properties from the Charter Hall Prime Industrial Fund for $81 million and also undertook a placement to raise about $84 million.
This article originally appeared on www.theaustralian.com.au/property.
