Thursday, January 18, 2007

Australian Geological Survey HQ in Canberra Sold for $234 million

Colliers International Web Site - January 16, 2007

A German pension fund has smashed the record for a Canberra office deal with the purchase of a $234 million government complex. The acquisition of the Geoscience complex by German group Real IS heralds a major move back into Australian real estate by giant German pension funds.

MTAA Super purchased the Geoscience complex from the Australian government, as part of the latter's property divestment program, in 2000, for $152.4 million. It was advised on the latest deal by property consultant JG Service Pty Ltd.

BayernLB, which is the property arm of one of Germany's largest banks, has been growing its Asia-Pacific real estate investment business. It bought an office tower at 11-33 Exhibition Street in Melbourne for $136 million and another at 151 Pirie Street in Adelaide for $61 million last year.

The Canberra complex was acquired from the Motor Trades Association of Australia Superannuation Fund on a sub-7 per cent yield. Analysts said it had been overweight in the Canberra market. The German fund was attracted to the long-term government lease which has 14 years to run at the purpose-built facility. The Geoscience complex is on a 16.03 hectare site and spans 42,894 square metres of office and laboratory space across two buildings. It has 517 car parking bays.

Real IS was represented by Colliers International's Jon Chomley and Jim Shonk. Mr Chomley said that Real IS had undertaken due diligence in only six weeks and the deal settled last week. Sphere: Related Content

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