Macquarie sells Perth building for $38m

Macquarie Office Trust has highlighted the uncertain nature of the property market with its third local sale, offloading a West Perth office building for 16 per cent below its recent valuation.

The Trust sold 1100 Hay Street building, which counts Technip Oceania and Commonwealth Bank of Australia as major tenants, to an undisclosed buyer for $38 million.

The sale price is around $7 million below the December 2008 book value of $45 million, but the Trust said it will deliver a 54 per cent gain above historical cost and an 11.4 per cent annualised return over the 11 years since acquisition.

Macquarie bought the building in 1997 for $22.1 million.

"The sale of 1100 Hay Street is continued demonstration of the Trusts ability to deliver on asset sales, with over $461 million of asset disposals completed since December 2008," chief executive Adrian Taylor said.

"The sale also allows the Trust to continue its strategy of repaying debt and strengthening the balance sheet.

"As a result of this transaction and the Trust's other recent asset sales, balance sheet gearing is anticipated to reduce to 31.0%."

Earlier this year, Macquarie sold 45 Francis Street Northbridge, which houses the Australian Tax Office, for $95 million to German banking group Dekabank.

The property was sold at a $3 million, or 3 per cent, discount to the December book value and will deliver a $31.6 million profit to Macquarie.

Macquarie also sold its 81 St Georges Terrace 14-storey office building to former Australian Fast Foods owner Nick Tana for $39 million.

The off-market deal was a bargain buy for Mr Tana, who picked up the property for almost $3 million less than what Macquarie bought it for from former owner GE Real Estate for in mid-2007.