12/08/2021 - 16:15

Allendale Square to hit the market

12/08/2021 - 16:15

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Mirvac Group has announced its intentions to sell its 31-storey Allendale Square office building along St Georges Terrace.

Allendale Square has a total weighted average lease expiry of 6.1 years.

Mirvac Group has announced its intentions to sell its 31-storey Allendale Square office building along St Georges Terrace.  

In reporting its FY21 results to the market today, the group earmarked Allendale Square as one of its assts in the ‘pre-market’ selling stage for the FY22 financial year.

The group purchased the 1970s office building in 2013 for $231 million, according to CoreLogic data – only slightly less than the $232 million valuation given at June 30 2021, listed in Mirvac’s property compendium.

Mirvac invested in a significant refurbishment of the 28,957-square-metre office tower in 2017, with major tenants including WA Bar Chambers (6,037 sqm) and MinterEllison (3,439sqm).

WA Bar Chambers' lease expires in February 2031, whereas MinterEllison’s expires in February 2024.

Allendale Square has a total weighted average lease expiry of 6.1 years.

The CBD tower is the largest Perth office in Mirvac’s portfolio, and once sold could see Mirvac fall from 11th place on the Business News list of largest WA commercial property owners.

If Allendale Square is sold this year, it would add to the more than $951 million worth of Perth office assets that have transacted so far in the 2021 calendar year, according to the latest report from CBRE.

Mirvac said that it anticipated generating more than $600 million from selling its non-core assets in FY22, with other properties listed for sale including its Quay West car park in Sydney and Tramsheds retail asset, also in Sydney.

The group also plans to sell its national Travelodge hotels portfolio, which it listed as exchanged as its sales status.

Mirvac reported a statutory profit of $901 million, up 61 per cent year-on-year, and a total return of 34.1 per cent.

At the close of trade, Mirvac shares were down slightly by 0.6 per cent at $2.98 per share.

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