Frasers Property to sell 50 percent stake in Melbourne office tower for around A$326 million

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Frasers Property Australia said on Wednesday it has entered a deal to sell its entire 50 percent stake in a Melbourne, Australia, office tower to co-owner GPT Wholesale Office Fund (GWOF) for A$326.2 million (S$312.57 million or S$213.37 million).

The gross sale price is at an initial yield of 4.8 percent, Frasers Property said in a filing to SGX after the market close on Wednesday.

GWOF exercised its pre-emptive right to purchase the stake following a “re-positioning” of the building and the re-leasing of more than 22,000 square meters of space, the filing said, adding deal settlement is expected later this month.

The property at 2 Southbank Boulevard at Freshwater Place has 55,000 square meters of office space, with tenants including Apple, Microsoft and Kraft Heinz, the filing said.

Rod Fehring, CEO of Frasers Property Australia, the re-positioning and re-leasing project was “an outstanding success,” with the space leased at new benchmarks for the building.

“Frasers Property has divested its interest in the asset as part of our ongoing capital management program,” he said in the statement.

The building was developed by Frasers Property in 2005, it said.

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