Mirvac's Allendale Square in Centuria's sights at $225m
Fund manager Centuria Capital is circling one of the Perth CBD’s better-known landmarks, Allendale Square, which is owned by ASX-listed Mirvac and is expected to change hands in a transaction worth about $225 million.
The mooted transaction price represents a yield of above 6 per cent, according to industry sources. Mirvac had put the 31-level tower at 77 St Georges Terrace on the market close to a year ago, through Cushman & Wakefield and Colliers, as it looked to realise the results of its improvements at the site.
Mirvac has worked to upgrade the near 29,000-square-metre tower since acquiring it in 2013. The office tower stands above a retail arcade, Underground at Allendale Square, which links to CBD shopping malls and provides access to the Elizabeth Quay train station and bus port. The tower’s tenants include Minter Ellison and the WA Bar Chambers.
Mirvac last valued the tower at $207 million in its June 30 filings this year on a capitalisation rate of 6.63 per cent. Earlier this year, boutique fund manager Fortius emerged as a potential buyer for the asset. But no transaction eventuated and the Fortius platform has since been taken over by ASX-listed Growthpoint Properties Australia.
Now it is Centuria which is conducting due diligence on the prominent tower, according to market sources. Centuria’s capacity in the west has been considerably advanced by its own corporate activity, taking over Perth-based, ASX-listed fund manager Primewest last year.
