AFIAA: buying and selling in Australia
The AFIAA Investment Foundation for Real Estate Investments Abroad purchased an office property in Melbourne by way of an asset swap and sold a property in Brisbane in return.
AFIAA acquired the "628 Bourke Street" office building in Melbourne from M&G Real Estate Asia as part of an asset deal for around 181 million Australian dollars (CHF 137.9 million). In return, AFIAA also sold the approximately 14,000 sqm "HQ South" office building at 520 Wickham Street (Fortitude Valley) in Brisbane to M&G for 119 million Australian dollars (CHF 90.7 million).
The acquired property in Melbourne is located on Bourke Street, in a direct CBD location and around 100 meters from Southern Cross mainline station. Built in 1989, the building comprises around 23,400 sqm of office space and 940 sqm of retail space. Both the lift lobbies and individual floors have been refurbished in recent months. One of the most important tenants is the insurance company QBE.
"We are investing the sales price of around 119 million raised for HQ South in a larger property in Melbourne, where we already own two other properties," says Ingo Bofinger, CEO of AFIAA. In the Australian metropolis, the company sees "further potential for rent increases in very good locations," Bofinger adds. In Australia, AFIAA holds properties in Sydney in addition to those in Melbourne's CBD.
AFIAA is planning further purchases in central metropolitan locations as part of its "2016+" strategy. A portfolio volume of CHF three billion is targeted by 2021. In total, the investment foundation currently holds direct real estate investments worth around 1.5 billion. Around 45 percent of the portfolio is located in Europe, 31 percent of the properties are in North America and a further 24 percent in Australia. Currently, 45 Swiss pension funds invest their money directly in foreign real estate through AFIAA.
