EISS to divest its $200m direct property portfolio
NSW based industry superannuation fund Energy Industries Superannuation Scheme announced its intention to divest its entire direct property portfolio, valued at more than $200m.
The sale of its portfolio of four properties, consisting of two office buildings and two industrial assets, is part of a change in the way the fund obtains exposure to property.
According to Energy Industries Superannuation Scheme (EISS), after an extensive review of its investment strategy and its direct property assets, the Board has decided to divest itself of all directly owned properties and reinvest in listed and unlisted property funds.
Though EISS properties are high-quality assets, the portfolio is small to allow sufficient diversity to meet the fund’s risk management needs.
Energy Industries Superannuation Scheme believes that they can gain consistent returns for its members through the property trust sector without having to commit the financial resources and personnel to managing a direct property portfolio. They have therefore appointed CB Richard Ellis to sell the portfolio.
CB Richard Ellis is offering the properties individually or in one line via an Expressions of Interest campaign, to be coordinated by CBRE directors Robert Sewell and Greg Cohen. Expressions of Interest close on Thursday October 11, 2007.
According to Energy Industries Superannuation Scheme (EISS), the sale campaign is expected to generate widespread interest as a result of the quality and diversity of the assets. Some of these assets are unique that you would just not expect them to be offered for sale.
Energy Industries Superannuation Scheme’s portfolio consists of 10 Barrack St in Sydney’s CBD, Macquarie Tower at Parramatta, 33 Maddox St, Alexandria, and 5 Orion Rd, Lane Cove.
Sydney’s 10 Barrack St is one of the best B-grade office buildings in the CBD. The 12-level building has a net lettable area of 9595 sq m and is fully leased to blue chip tenants including United Airlines, ING and Credit Corp.
The other trophy office asset is Macquarie Tower at 10 Valentine Ave, Parramatta. The A-grade building, which has a 5-star ABGR rating, is situated on an island site on the western fringe of the Parramatta CBD. The 15,996 sq m tower is fully occupied by the NSW Government.
According to Energy Industries Superannuation Scheme, Macquarie Tower occupied a significant site that offered potential. The upgrade of the Parramatta Rail and Bus Interchange and the Westfield Cinema redevelopment have revitalised the traditional government precinct, and have had a positive impact on Macquarie Tower.
The Energy Industries Superannuation Scheme industrial line-up is headed by the prime Perry Park Estate at 33 Maddox St, Alexandria. Perry Park is a fully occupied, 30,758 sq m office/warehouse complex on a prime 4.24 ha site, less than 1km from the Green Square commercial precinct.
Energy Industries Superannuation Scheme’s second industrial asset is an office/warehouse complex at 5 Orion Rd in the Lane Cove West Business Park. The 6412 square metre building on a 1.06 ha site is fully occupied.
31-Aug-2007