AUSTRALIA - Pension fund Sunsuper has acquired the Melbourne central business district (CBD) office property for AU$107m ($108.3m), the fifth in its direct property portfolio.
AMP Capital Investors has purchased the property at 330 Collins Street on the fund's behalf. The property was selected because of its geographical location and projected income returns and its long-term rental growth forecast for the next five years, said AMP Capital.
The property has approximately 18,337sqm of A-Grade office space over 20 levels, including 18 office floors, extensive retail accommodation, ground floor foyer and two basement floors. The building underwent significant refurbishment in 2003.
AMP Capital portfolio manager Damian Fitzpatrick said: "Demand for quality office space in Melbourne's CBD is increasing due to less development activity as a result of the financial crisis. With Melbourne's commercial office market well positioned for growth, due to low vacancy and a strengthening in market conditions, the property will offer Sunsuper ongoing positive returns and afford tenants extensive prime retail frontage at a time when commercial vacancy rates are decreasing.
Sunsuper's CEO Tony Lally said: "This property at 330 Collins Street, along with our recent purchase of 35 Clarence Street in Sydney, is a great fit for Sunsuper in terms of quality and location. We're confident that our members will benefit from future growth and strong tenant demand in both the Melbourne and Sydney CBDs as a result of these acquisitions."
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