$2b in assets primed for sale
Listed Cromwell Property Group will put up for sale office assets in Sydney and Melbourne, at a time when demand for city properties is rising.
Across the country, office assets worth almost $2 billion are being prepared for sale as the owners look to reinvest the cash into new developments.
These include eight properties worth a combined $300 million being sold by the NSW government and a more than $1.5 billion portfolio of assets that the US giant GE Capital is selling.
The plan by Canadian-based Brookfield to create a $900 million property trust via a public float will also add to the mix of activity in the Sydney and Melbourne office sector.
Brookfield owns Multiplex and it is said some of the local assets could be included in any float of the property assets.
Cromwell has appointed CBRE and Colliers International to jointly to sell the properties via individual sale campaigns.
On offer is Cromwell's twin-tower property at 475 Victoria Avenue, Chatswood, and the A-grade 380 La Trobe Street office building in Melbourne.
In the case of Sydney, the campaign will be steered by CBRE's Scott Gray-Spencer and Tim Grosmann in conjunction with Colliers International.
The Chatswood complex involves office towers of 11,900 square metres and 11,750 square metres as well as a large retail podium of 834 square metres plus basement parking for 398 cars.
Mr Gray-Spencer said the quality of the asset, the premium tenancy profile and the future value-add potential would help underpin buyer interest.
"The complex is presently fully leased to major tenants such as Reed Elsevier, Leighton Contractors and Evan & Peck, providing a strong income stream," Mr Gray-Spencer said.
"However, there is also potential to subdivide the towers and the retail podium under an existing strata approval which could allow for a possible residential conversion."
Colliers national director Jon Chomley said 475 Victoria Avenue offered investors the opportunity to buy an office asset at below replacement cost and with "significant value-add opportunities".
In a separate campaign, CBRE's Mark Coster and Mark Granter will steer the marketing of 380 La Trobe Street, in tandem with Nick Rathgeber and Leigh Melbourne of Colliers International.