Brookfield Property Partners is bringing another landmark office towers, its $200 million-plus stake in Bourke Place, to market in Melbourne as it recycles capital and pays down debt from major acquisitions. The sale puts more than $1.5billion worth of assets in play in Australia alone for the offshore giant, which is listed in both Canada and the United Stated. AMP Capital, which owns 57 per cent of the building at 600 Bourke Street, would be one of the likely buyers.
Industry sources say the sales process will be held before it can choose to exercise its pre-emptice option over Brookfield's share. Brookfield said at its second quarter earnings result in august that the demand for real estate meant it was a good time to recycle capital globally. Low interest rates and the falling Australian dollar means core real estate is highly sought after by yield-seeking, passive investors in particular. "There's no shortage of interest from institutional and sovereighn wealth funds so we think it's a good time to recycle capital out of mature, stabilised assets, "CEO Ric Clark told shareholders at the time. Brookfield has stakes in 26 Australian properties, comprising mainly landmark office towers. It has already put shares in Perth's Brookfield Place and Melbourne's Southern Cross complex on the market valued at $1.3 billion. REST Industry Super, private equity giant Blackstone and M&G Real Estate are some big names to have expressed interest so far sources said.
Source: The Australian Financial Review - 30 September 2015