Five Australian office properties listed for sale by TrustCapital Advisors

Sydney, July 19, 2017 – Singapore-based TrustCapital Advisors (TCA) has commenced an official marketing process to sell five office assets along Australia’s eastern seaboard in a move expected to raise circa $700 million.

CBRE and JLL will steer the international Expressions of Interest campaign for the properties, which are held across two private equity funds managed by TCA.
The assets – 150 Charlotte Street in Brisbane; 50 Pitt Street in Sydney; and 469 La Trobe Street, 850 Collins Street and 575 Bourke Street in Melbourne – are being sold in accordance with the funds' strategy and intended timeline.

Expressions of Interest will close 23rd August 2017, with the campaign expected to generate significant interest from both domestic and offshore investors. The assets will be available individually, as an entire portfolio or as a split combination of assets. “This is the best quality east coast portfolio that’s come to the market in relation to quality, geographic spread and scale,” Mr Coster said.

“For portfolio buyers, the campaign provides an opportunity to gain obtain immediate scale with prime assets across Australia’s three major cities. Strong interest is also expected in the individual assets, which are each well positioned to capitalise on market conditions in their particular locations.”

JLL’s Mr Sewell added, “Over 85% of this collection of prime office assets is weighted to Sydney and Melbourne, which are rated by JLL as the world's top 2 best performing office destinations. Brisbane, meanwhile, is positioned for an upswing in tenant demand as a result of the many public and private infrastructure projects that are now underway, with 150 Charlotte Street set to benefit given the building’s proximity to these projects.” In the case of the Melbourne assets, the 19,864sqm 469 La Trobe tower provides a strong income growth story and the need for minimal capital expenditure. The recently upgraded tower is situated in one of one of Melbourne’s best performing precincts, which is being enhanced by the westward shift of the CBD towards Docklands.

“The building benefits from a diverse tenant mix, full occupancy, a strong history of tenant retention and strong potential for near term rent reversion,” CBRE’s Mr Coster said. With 850 Collins Street, Mr Coster said buyers had an opportunity to secure a new, 17,337sqm A-grade building in Melbourne’s Docklands precinct, providing a high-quality income underpinned by global tenant Aurecon.

The campus style building offers large, flexible floor plates, expansive end of trip facilities and has been designed to achieve a 4.5 star NABERS rating when fully let. There is also potential to add further value to the property, with the ability to reconfigure the retail to include a quality F&B offering.

Rounding out the Melbourne assets is 575 Bourke Street - a multi-let, refurbished office asset positioned at the heart of the Melbourne CBD’s western core. The 16,152sqm building has capital works underway which will deliver a double height entrance foyer, new end of trip facilities, significant sustainability initiatives and a 4.5 star NABERS rating. “These measures will future proof the asset, improving tenant attraction in the future while driving rental growth,” Mr Coster said.

Turning to Brisbane, the 11,011sqm 150 Charlotte Street tower offers a quality cash flow and long Weighted Average Lease Expiry (WALE), in addition to the opportunity to secure a relatively high yielding investment opportunity.

Located in Brisbane’s sought after Golden Triangle, the building is home to several major tenants, including Rio Tinto. It is the first A grade institutional quality asset of its size to be offered to the market since Central Plaza Three in 2013.

“In the current cycle, the building is well positioned to capitalise on the recovering Brisbane leasing market, given the major lease expiries are in 2024. It provides an opportunity to buy a long WALE, core CBD product at an initial yield unattainable in other major east coast markets,” JLL’s Mr Sewell said.

Completing the line-up is 50 Pitt Street, Sydney, which occupies a super prime corner, with value add options, growth potential and the need for minimal capital expenditure. “Circa $20 million has been spent on the property since 2008, with the most recent capital works helping to achieve a 4.5 start NABERS energy rating. The multi-tenanted building is also poised to benefit from the diminishing supply of B-grade office stock in the Sydney CBD, substantial upside in the rents and the potential to construct additional retail space,” Mr Sewell said.