Half of the Southern Cross tower complex in Melbourne has been purchased for $675 million by private equity fund Blackstone from funds managed by Brookfield, according to The Australian Financial Review.
One of the Funds, Brookfield Prime Property Fund, has announced that conditional agreements have been executed for the sale of the Fund's 25 per cent interest in Southern Cross East (SXE) and 50 per cent share of Southern Cross West (SXW) in Melbourne.
The proposed sale price of $228.5 million for 25 per cent interest in SXE is 26.3 per cent above the 30 June 2015 independent valuation of $180.9 million. The proposed sale price of $218 million for 50 per cent share of SXW property is 41.3 per cent above the 30 June 2015 independent valuation of $154.3 million.'Brookfield Asset Management controls the other stakes in the two towers.
The overall deal was negotiated at a passing yield of approximately 5 per cent.
According to the AFR, the sale will "cut Brookfield Prime Property Fund's senior debt facility, allow the full repayment of the subordinated debt facility and provide for a distribution to unit holders of $2.50 a unit".
The property was handled by CBRE'S Josh Cullen, Rick Butler, Mark Coster and Luke Etherington, and Colliers International's Nick Rathgeber and Leigh Melbourne.