MGPA in $111m Australia office building deal
MGPA, a private equity real estate investment firm, has paid A$105.67 million ($111 million) for a Grade A office building located at Perth. This is the first investment made from MGPA’s EUR500 million ($639 million) Asia property fund, a vehicle structured to target German investors.
The property - namely Optima Centre - has a total net rentable area of 16,116 square meters over two buildings and includes 500 car spaces. The buildings were completed in 2009 and 2010 and are currently fully let of which 83% is leased to the Government of Western Australian.
MGPA held the first close of MGPA Asien Spezialfonds last September with commitments of EUR85 million. The fund is regulated under German investment laws and is primarily designed for institutional investors in German-speaking countries seeking exposure to Asian real estate markets.
The fund marks a departure from the investment firm's previous real estate vehicles as it is a yield-focused core-plus product, in contrast to MGPA Asia Funds I, II and III, which have all focused on higher-risk, more labor-intensive opportunities.
"This asset is particularly attractive as the first investment for the Asien Spezialfonds due to its high income yield from predominantly AAA rated covenants, long WALE, and ability to capture rental growth in one of the most exciting office markets in the region," said Hamish MacDonald, country director for MGPA.
The acquisition is still subject to approvals from Australia's Foreign Investment Review Board (FIRB).
Last September, MGPA also acquired a property of retail and office spaces located in Sydney, Australia, for A$105.1 million. The acquisition was made via MGPA Asia Fund III, a $3.9 billion vehicle launched in 2007.
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