CIMB-TCA makes fourth Aussie property purchase

KUALA LUMPUR: CIMB TrustCapital Advisors (CIMB-TCA), as manager of the CIMB TrustCapital Australian Office Fund No. 1 (CIMB-TCA AOF1), yesterday announced the acquisition of 150 Charlotte Street, Brisbane, from the Stockland Trust for A$56 million (RM180 million).

CIMB-TCA is a joint venture between CIMB Real Estate Sdn Bhd and Singapore-based TrustCapital Advisors Pte Ltd.

CIMB-TCA AOF1 is a unique Asian-based fund established with the objective of investing in high-grade commercial office buildings in the key cities of Australia.

150 Charlotte Street is a well-located building in Brisbane's central business district and has just been fully refurbished to a PCA A-Grade standard.

It consists of 18 storeys of office space, and with the upgrades, it is now a highly energy-efficient building that targets a 4.5-star National Australian Built Environment Rating System (NABERS) and a 5-star Green Star as-built rating.

Under a Development and Lease Procurement Agreement, the Walker Corporation will give five years of rent support for the property, which will provide CIMB-TCA AOF1 a guaranteed initial yield of 8.7 per cent on a fully-leased basis in the first year.

The guarantee also provides for annual increments of four per cent per annum for the next five years.

Several floors of the property are already leased to Energex, the Australian Department of Foreign Affairs and Trade and the Walker Corporation.

This is CIMB-TCA AOF1's fourth acquisition since it entered the Australian market early last year. The other assets are 469 LaTrobe Street and 850 Collins Street in Melbourne and 50 Marcus Clarke Street in Canberra.

CIMB-TCA has invested approximately A$530 million over the last 18 months in Australian properties and is now one of the most prolific and respected foreign investment managers in the Australian office real estate sector.

Bernama