Brookfield Office Properties Inc. (NYSE, TSX: BPO) today announced its intention to secure an indirect interest in two A-grade Australian office towers: Southern Cross West in Melbourne and BankWest Tower in Perth.
The acquisitions, at a total price of AUD$250 million (USD$263 million) will be made by Brookfield Office Properties’ 73%-owned vehicle, Brookfield Prime Property Fund (ASX: BPA) and will be funded through a combination of available liquidity, bank debt and an acquisition bridge facility. The acquisition of BankWest is subject to Foreign Investment Review Board (FIRB) approval.
Southern Cross West, Melbourne
Southern Cross West, a 20-story, 495,000-square-foot (46,000 m 2) office tower in Melbourne’s central business district, forms part of the landmark Southern Cross development. The property was completed in 2009 and comprises 20 floors of office accommodation, which are 100% leased to Australia Post through 2019, and ground-floor retail.The building is located at the eastern end of the Melbourne CBD, bordering Bourke and Little Collins Streets. Public transport facilities include tram and bus services; Parliament Railway Station is situated 100 metres to the west. Brookfield Office Properties indirectly holds the remaining 50% interest in the Southern Cross West property, also through Brookfield Prime Property Fund. Brookfield Office Properties’ Melbourne portfolio is 99.7% leased and comprises four properties encompassing over 2.5 million square feet. BankWest Tower, Perth BankWest Tower, a 52-storey, 423,000-square-foot (39,000 m 2) renowned commercial office tower in Perth’s central business district, includes the four-level Palace Hotel, a heritage listed ground floor banking chamber and associated offices on the upper levels. The building, which is 87% leased with BankWest as the anchor tenant, is prominently located on the corner of St Georges Terrace and William Street in the core of the Perth CBD and has expansive city views from the upper floors. BPO’s affiliate, Brookfield Asset Management, holds the remaining 50% interest in BankWest Tower.