EG adds Perth Asset to Portfolio14 November 2019
EG Funds have acquired 2 Mill Street, Perth for $79.05 million from AMP Capital's client SunSuper.
The twelve-level, A-grade office accommodation provides 11,486sqm of NLA and 38 car bays with modern amenities in a side core offering flexible floor plates.
The property is 70% leased and offers a WALE of 1.8 years. On a fully let basis, the property is forecast to generate $7m, however is currently likely to generate approx $4.5m. On a fully let basis, the purchase price equates to a yield of circa 8.9% but with a passing yield of circa 5.6%.
The acquisition is the second property secured for the $800 million Australian Core Enhanced Fund (ACE), an open-ended, diversified fund targeting office, retail and industrial assets.
“We are pleased to see our Core Enhanced Fund expanding and diversifying through the acquisition of high-quality assets,” said Aakriti Chona, Senior Manager, EG.
“2 Mill Street delivers quality office space with a strong tenant profile. This asset is perfectly positioned to benefit via a targeted refurbishment and leasing strategy as Perth experiences improving macroeconomic conditions. EG is looking forward to further successful acquisitions on behalf of our investors in the ACE fund.” said Dan Farley, Fund Manager, ACE.
The transaction was brokered on-market by Knight Frank in conjunction with CBRE.