MGPA acquires Australian property for $110m
MGPA, a private equity real estate investment firm, has acquired a property of retail and office spaces located in Sydney, Australia, for A$105.1 million ($110 million).
Investing via MGPA Asia Fund III, a $3.9 billion vehicle launched in 2007, the firm bought the Grade B office building based at 6-10 O'Connell Street. The building has a net lettable area of around 16,000 square meters, comprising of 26 levels of office space (14,601 square meters) and a retail zone on the ground floor.
Its location is within the thriving business district known as the ‘Golden Triangle' and is currently 92%-occupied, by 38 office and six retail tenants.
"This B-Grade property is located in the prime Core precinct of Sydney's CBD, an area which we forecast will maintain its premium standing," said MGPA's Asia CEO, John Saunders. "The area has had strong leasing history and we see this acquisition as a wonderful opportunity to do what MGPA does best, repositioning a lower grade asset in a great location to grow income and drive value."
The news of this transaction comes just days after MGPA announced a first close of its Asien Spezialfonds vehicle on EUR85 million ($111 million). 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.
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