BlackRock Real Assets has formed a joint venture with Perth-based Primewest to acquire an office block in Australia from the AMP Capital Diversified Property Fund (ADPF) for an undisclosed price.

IPE Real Assets understands the sale price was A$255m (€164m), which was “above the valuation” for the asset on the balance sheet of ADPF.

The 28-level office tower at 140 St Georges Terrace in Perth, also known as the AMP Building, has been in the financial group’s holdings since 1910.

Primewest executive chairman, John Bond, said: “A significant amount has been spent on capital upgrades in recent years, and we see further value creation opportunities for the asset.”

The asset would, Bond said, be “further enhanced” by “BlackRock’s significant global reach, experience and vision”.

He added that the joint venture would “immediately aim to further enhance the asset as Perth’s premier A-Grade office address” with a new strategic management and leasing campaign.

Primewest will provide project services, property management and leasing services to the joint venture, together with a co-investment stake

“consistent with other institutional real estate mandates”.

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