Macquarie Offfice Trust is poised to offload over $200 million worth of Australian and United States assets and the trust has plans to use the recycled capital to invest in Europe and Asia.
MOF’s chairman David Clarke said the trust is reposition its portfolio by selling mature assets to crystallise gains and then reinvest the proceeds in the new assets.
So far, the trust has earmarked the properties One Liberty Square in Boston, USA; Elizabeth Plaza in North Sydney and Railway Parade in Burwood, New South Wales.
Clarke said its $1.2 billion joint venture with Maguire Properties, one of the leading owners of office property in southern California has given it significant exposure to the high market growth of Southern California and this market has significantly outperformed average US markets.
“Indeed, California now represents 38% of the trust’s US assets and 22% of the total portfolio,” he added.
Clarke said the trust now has the scope to look at other global markets in Asia and Europe were there are some strong property and economic fundamentals and where the trust maybe able to take on strategic exposure to strengthening markets.
MOF is part of the Macquarie Real Estate division which manages over $22 billion in property assets across the globe.
“MOF has a simple objective – to invest in office buildings in OECD or similar standard economies that maximise total returns to unitholders.
“While we have previously executed our international acquisitions through joint venture partners, we will now have an increased ability to rely on our global network to source, acquire and manage offshore properties,” he added.
Clarke said the trust has grown significantly since its humble beginnings in December 1993, when it owned just three properties at Burwood in Sydney, Northbridge in Western Australian and Moonee Ponds in Victoria worth a total of $180 million.
Today, MOF owns 42 properties across 28 markets worth in excess of $5 billion.
By Nelson Yap
