The GPT Group (GPT) has partnered with the GPT Wholesale Office Fund (GWOF) to purchase CBW in Melbourne from CBUS Property for $608.1 million.
GPT and GWOF will each acquire a 50 per cent interest in CBW, otherwise known as ‘Corner of Bourke and William’, with the purchase representing a capitalisation rate of 6.5 per cent.
Constructed in 2009, CBW consists of 181 William Street, a 26-level office tower and 550 Bourke Street, a 19-level office tower as well as Goldsborough lane, ground and mezzanine level retail.
The two towers total 76,090 square metres A-grade office space and Goldsboroung Lane comprises 5,313 square metres of retail space.
The transaction takes acquisitions for the Group to $1.7 billion since the start of 2014.
GPT’s Chief Investment Officer Carmel Hourigan said the purchase demonstrates how the Group can use its balance sheet capacity and the relationship with its funds, to secure large scale, quality assets.
“GPT now has 88 per cent of its office portfolio in Sydney and Melbourne, which is where we continue to see the most promising signs of a recovery.”
GWOF Fund Manager Martin Ritchie said, “the acquisition increases the size of GWOF to $5.2 billion and is expected to contribute positively to fund returns. GWOF remains the number one performing wholesale office fund over one, three, five and seven years,”
With 99 per cent occupancy, the towers are anchored by IAG, Deloitte, Ashurst, Baker & McKenzie and Crowe Horwath and it has a weighted average lease expiry of 5.2 years.
