Heitman has formed a second joint venture with Abacus Property Group to acquire an office tower in Australia for AUD170m (€105.4m).
The US-based real estate manager has taken up a 50% stake in the Brisbane office tower known as K1 on behalf of an affiliate of the firm, and Abacus will hold the remaining 50% stake as tenants in common.
K1 is located at 1 King Street in Fortitude Valley, close to the Brisbane central business district.
Skip Schwartz, Heitman’s managing director of Asia-Pacific Private Real Estate Equity, said: “We view our investment in K1, a Grade-A asset that is well-situated in the Brisbane market with a strong tenant profile, as compelling and well-positioned to benefit in future growth in demand.”
Abacus managing director, Steven Sewell, said the latest venture followed a successful first partnership with the US investor.
The first Abacus-Heitman venture was formed in 2011. It owned a portfolio of core plus office, retail and industrial properties, valued at AUD600m.
Heitman invested in that venture on behalf of a client, subsequently revealed to be Korea’s National Pension Scheme.
The fund was wound up last December after the last two assets – an office in North Sydney and another in Brisbane – were sold for AUD135m.