Listed property trust Macquarie Office Trust (MOF) has sold one of its properties in Melbourne at a ‘significant premium’ to current book value. The Trust achieved a premium on the sale of $83 million.
The company said the sale of 505 Little Collins Street, Melbourne represents a significant return for the trust and reinforces management’s commitment to realising assets and repaying debt with the view to enhance unitholder value.
Key feature of the transaction include a $40.4 million gain above costs, the proceeds of which will be utilised to reduce debt and gearing levels.
Chief executive officer, Adrian Taylor said: “In line with our strategy, we will continue to make selective asset sales where it makes sense. The sale of 505 Little Collins Street represents a strong result for investors.”
At 16% above current book value, the sale reflects improved positioning of the property through active asset management and the strength of the Melbourne office market.
The property was acquired in 2000 for $28.5 million and has had occupancy increase to 100% following tenant retention.
The move will bring the total value of property sales by Macquarie Office this financial year to $340 million.
The trust also announced that the sale of Lang Centre in Parramatta, Sydney has been settled.
Macquarie Office said that Florida-based property group Stiles Capital Partners had exercised its option to acquire a 9% stake in a joint venture that will own the SunTrust Financial Centre in Tampa, Florida, for $US10.8 million.
Macquarie Office Trust is a listed real estate investment trust with assets under management of almost $7 billion located within Australia, the United States, Western Europe and Japan.
Shares in MOF gained 4 cents or5.2% to 91 cents after trading between 87 cents and 93.5 cents during the day. More than 10 million shares had changed hands, above the daily average of 8.6 million.MOF
