Heitman and Abacus sell remaining assets in AUD600m Australian fund

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Heitman and Abacus Property Group have sold the remaining two real estate assets from their AUD600m (€384m) joint venture in Australia.

The partners disposed of an office building at 32 Walker Street, North Sydney, and another in Queen Street, Brisbane, for a total of AUD135m.

The North Sydney building was the first asset bought for a wholesale fund set up by Heitman and Abacus in 2011. It was acquired for AUD35.6n in 2011 and sold last week for AUD80m.

The Brisbane asset was sold to a private investor for AUD50m, according to a source close to the transaction.

Chicago-based Heitman and its Australian partner Abacus formed a fund in 2011 with a view to owning gross assets of about AUD600m. The US investor contributed 75% of the equity.

At the time, the partners said they would contribute equity of up to AUD266m, with AUD200m coming from Heitman, investing on behalf of a major Korean institution, subsequently revealed to be the National Pension Scheme.

The biggest asset was 484 St Kilda Road in inner Melbourne, which sold for AUD94m to the Melbourne-based developer Grocon and UBS Global Asset Management in 2014.

IPE Real Assets understands that Heitman, which bolstered its Australian office this year, is committed to market.

It is expected to allocate capital to Australia from its first closed-ended Asia-Pacific fund, which is aiming to raise US$500m by next year. Australia is one of six target markets for the new fund.

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