Southgate Complex in Southbank is one of Australia’s largest commercial property sales, with a value of $580 million.
In perhaps one of Australia’s biggest commercial property sales ever, a value of $580 million has been placed on the Southgate Complex in Southbank. The vendor, Dexus Property Group, announced the sale to the ASX in early August. The announcement also included a sale of another commercial property in Adelaide (108 North Terrace) at $86.5 million. Funds from both sales will be used to pay down debt and fund future development projects.
The purchaser, Southgate Trust, has agreed to purchase the property over two transactions. The first tranche of $280 million will be paid and settled in the December 2016 quarter, with the remaining $280 million option to be exercised and settled on or after July 31st, 2017, but within two years. The Southgate Trust is an unlisted property trust that is owned in equal shares by Suntec Real Estate Investment Trust and Peninsula Investment Partners. It is managed by ARA Trust Management (Suntec) Ltd. Suntec Real Estate Investment Trust is a property trust which was listed on the Singapore Securities Exchange in 2004. Peninsula Investment Partners is a real estate fund established in 2015. It invests primarily in developed real estate markets across Asia, targeting prime office, retail and logistics properties.
The Southgate Complex comprises the HWT Tower, the IBM Centre, Southgate Arts and Leisure Centre and the three-level, underground Southgate Car Park with parking for over a thousand cars. The enormous complex has a net lettable area of 76,000 sqm and its major tenants include IBM Australia, Dairy Australia, Harper Collins Publishers, the Herald & Weekly Times, and numerous small retail tenants. The fringe Melbourne CBD property is well located, with its proximity to the Victorian Arts Centre, Flinders Street Station, and Yarra River frontage.
