$700 Million Office Sell Off

Sydney office leasing

Agents have been appointed to offload a $700 million portfolio of Australian office towers on behalf of Singaporean fund manager TrustCapital Advisors.

The five assets spread across Melbourne, Sydney and Brisbane, are expected to hit the market by the middle of next month.

The appointment of CBRE's Mark Coster and JLL's Rob Sewell to broker the assets confirms the fund manager's previously reported plan to exit the majority of its Australian exposure, in line with its investment strategy.    The move to sell comes as commercial property prices appear to be at or near a peak in the Australian market, according to experts.

Three Melbourne towers, at 850 Collins Street, 469 La Trobe Street and 575 Bourke Street are among the properties to be offered while a fourth tower in Melbourne, the Australian Taxation Office building at Lang Walker's Collins Square, will be retained.

In Brisbane, TrustCapital's tower at 150 Charlotte Street is included in the sell-off and in Sydney 50 Pitt Street will go after being acquired by the group just three years ago for $94 million.

Lovelight sees bright prospects in South Yarra

National window furnishing group Lovelight has signed a long-term lease over a two-level 900sqm office and showroom building just off South Yarra’s bustling Chapel Street retail precinct.

Fitzroys agents Jordan Ceppi and Martin Huang negotiated the 8x5x5-year lease for 34 Garden Street at $220,000 per annum with 4% increases.

The site is located directly opposite the Jam Factory car park, is surrounded by a number of popular cafés and restaurants and is in close proximity to South Yarra Station and the Chapel Street tram line.

Lovelight began in Melbourne in 2011 and since expanded to have more than 60 installers working across Victoria, Queensland, Tasmania, South Australia and New South Wales.

The business looks to select and source the latest design technology and styling for window furnishings worldwide and offer it to the broader Australian domestic market.

Mr Ceppi said the strong rental and long-term lease achieved close to the iconic retail strip was another vote of confidence from businesses in the future prospects of Chapel Street precinct.