Abacus Property Group with joint venture partners KKR and Riverlee Group have exchanged contracts for the sale of World Trade Centre in Melbourne CBD for $267.5 million.
Abacus and KKR purchased 70% of the property from Riverlee Group in October 2014 for $120.4 million, valuing the entire property at $172.0 million at that time. Abacus has a 17.5% interest in the joint venture.
The management team initiated a number of asset management strategies that improved occupancy from 90% to 99%.
These included the extension of the Thales lease of 8,600m2 for a further 7 years, leasing over 5,000m2 of additional space and a capital works program that improved the NABERS green star rating of the property from 2.5 to 4 stars.
The property will yield an equity IRR of over 30%. Settlement is scheduled for June 2017.