AUSTRALIA - Australia's government wealth fund Future Fund has acquired a 50% stake in two buildings in Brisbane from Stockland Capital Partners.
The Future Fund paid as much as AUD$216.4m (€162.5m) to acquire a 50% interest in an office building Waterfront Place from an unlisted property fund owned by Stockland, Stockland Direct Office Trust No. 1 (SDOT1).
Additionally, the wealth fund has bought another 50% stake in the adjacent Eagle Street Pier building in Brisbane for a total of AUD$16m on the basis of a total refurbishment.
Stockland will retain the remaining 50% interest in Waterfront Place and Eagle Street Pier.
The move made by Stockland comes after SDOT1's shareholders decided in December 2009 to wind up the fund through the sale of its share in Waterfront Place.
John Schroder, chief executive for commercial property at Stockland, said: "This is a great outcome for SDOT1 unit holders, who have benefited from strong distributions over the life of the trust, in addition to the capital growth on the sale of Waterfront Place."
As for Future Fund, the acquisition is part of its plan to expand its real estate portfolio.
Earlier this month, IPE sister publication IPA reported that Future Fund was looking to boost its investments in private equity, property and infrastructure.
The wealth fund has raised its allocation to property to 6.1% at the end of March 2011, compared with 5.5% at the end of December last year.
Schroder said: "We are very pleased to welcome the Future Fund as our co-investment partner at both Waterfront Place and Eagle Street Pier. Together, these adjacent assets form one of Brisbane's best-known commercial complexes."
Waterfront Place, which is a 36-level, premium-grade office building fronting the Brisbane River, and Eagle Street Pier, a low-rise retail complex of 6,300 square metres, are both currently under refurbishment.