BGC kicks offs property sales worth hundreds of millions of dollars
BGC, founded by the late tycoon Len Buckeridge, has commenced the sale of hundreds of millions of dollars of non-core Perth property assets as it looks to realise the family’s investment in the giant construction and contracting conglomerate.
However, plans to divest its core building materials and construction businesses have been deferred because of a challenging trading environment including historically low levels of housing starts in Western Australia.
While conditions in the housing construction market are challenging, improvements in the commercial property market in WA made it an opportune time to sell its non-core assets, said BGC director Sam Buckeridge.
“The board is driven by commercial considerations, when deciding about the right timing to sell certain assets within group,” he said.
The BGC portfolio comprises a number of Perth CBD office towers including the 20-level BGC Centre at 28 The Esplanade and two eight-storey buildings at 18 and 22 Mount Street.
There are also a number of suburban office assets up for sale in East Perth and Osborne Park as well as investment in apartment blocks.
“It’s an extensive portfolio…worth many hundreds of millions of dollars,” said BGC chairman Neil Hamilton.
The properties will be offered in a staged sell down property with the ability to purchase them individually rather than as a portfolio.
BGC has already struck deals to divest its two newly developed hotels, Westin Perth in the CBD to Malaysia’s YTL Group for more than $200 million and the Aloft Perth and a neighbouring office building in Rivervale to Singapore’s Hiap Hoe for $100 million.
The group is also exploring options for its BGC Contracting, its big mining contracting and civil construction business, with Macquarie Capital appointed as advisors.
BGC, which Len Buckeridge founded in 1959, turns over more than $2.8 billion annually. Mr Buckeridge died in 2014.
