Stockland gets $55m for 45 St Georges

Australia’s largest property developer, Stockland, has confirmed it has sold 45 St Georges Terrace for less than what it paid for the building in 2006.

Stockland announced today it had sold the 10-storey office tower to a private offshore investor, reportedly international financial services giant Credit Suisse, for $55.3 million.

The development giant paid $57.3 million when it purchased the asset in 2006, according to property research firm RPData.

The building was valued as high as $70 million in June 2008, RPData said, while the sale price achieved was in line with Stockland's June 30 book value.

Stockland chief executive commercial property, John Schroder, said the sale reflected the company’s strategic portfolio and capital management objectives.

“The sale further demonstrates our continuing focus on increasing returns through active capital management,” Mr Schroder said.

“In FY12 we achieved total asset sales of $964 million, and have already achieved sales of $247 million this financial year.

“This capital will be used to fund the share buyback, grow our core business and maintain low debt.”

The sale was brokered by commercial real estate agent Savills.

The 10-storey office tower has a net lettable area of 10,017 square meters.

Key tenants include telecommunications firm Amcom Telecommunications, engineering group WorleyParsons, financial services firm Computershare Investor Services and the Reserve Bank of Australia.

Western Australian Governor-General Malcolm McCusker’s office is also located in the tower.

The sale is the second significant office transaction this week along the Terrace, with the building at 66 St Georges Terrace snapped up by Investa Office Fund for $82.4 million.