Stockland in office & car park fund spin off

STOCKLAND has spun a portfolio of office properties and a car park valued at more than $132 million into another unlisted fund.

The Stockland Direct Office Trust No. 3 is looking to raise $60 million from retail investors to buy four commercial office properties a car park, located in Western Australia, Victoria, New South Wales and the Australian Capital Territory.

Stockland will sell two Victorian properties in 541 St Kilda Road building, a $30 million B Grade building anchored by Seek and a 479 bay car park at 222 Russell Street into the fund.

In NSW, Stockland will offload a B Grade asset at 75 George Street, Parramatta which is anchored by St George Bank.

In WA, a B Grade asset at 191 Great Eastern Highway leased entirely to Telstra and finally in Stockland will offload the A Grade office building at 40 Cameron Avenue leased to the Australian Taxation Office.

The entire portfolio has a weighted average lease expiry of over 4.3 years by income.

The forecast annualised cash distribution is 7.75% per annum to June 2008, rising to 7.85% per annum to June 2009 and is forecast to be 100% tax deferred over these periods.

Stockland will apply for 10% of units on equal terms and conditions as investors.

Stockland’s general manager of unlisted property funds Daniel Jarosch said SDOT3 provides retail and wholesale investors with access to quality direct office property.

“Our strategy of co-investing in all our funds ensures a strong alignment with our unlisted investors.

“We will continue to leverage our diversified business model to provide innovative capital partnership opportunities for retail and wholesale investors,” Jarosch said.

Lead arranger and co-underwriter, ANZ’s capital solutions property director Matthew Lawrence said ANZ SDOT3 gives investors the opportunity to invest in a well-structured and financially attractive property product.

SDOT3 is scheduled to close on June 08, 2007, but will close earlier if oversubscribed.

At the close of SDOT3, Stockland’s unlisted property funds division will have over $800 million in assets under management including retail syndicates Stockland Direct Office Trust No. 1 and No. 2.

Stockland also manages the Stockland Residential Estates Equity Fund No. 1; the Saville Private Syndicate Trust and the Macquarie Park Trust which owns the new $351 million Optus Headquarters.

Australian Property Journal