M&G Real Estate Asia (M&G), the real estate fund management arm of M&G Investments, has acquired a Grade A office building in Brisbane, Australia, for A$119.1 million (approximately US$90.9 million). The transaction was made on behalf of its core Asia property strategy.
Chiang Ling Ng, Chief Executive and Chief Investment Officer of M&G Real Estate Asia, says: “We are pleased to strengthen our core Asia property portfolio by adding yet another quality asset in Australia, which is our first investment entry into the Brisbane market. This is also the fifth acquisition our core Asia property strategy has made this year, further utilising our capital queue in light of the continued investment appetite from regional and foreign capital.
HQ South comprises seven office floors, with one floor dedicated to retail and 207 parking lots. Adjacent to Fortitude Valley Railway Station – one stop away from Brisbane’s central business district, it is in close proximity to popular retail and entertainment amenities and good transport links. The building also has been awarded a 6-Star Green Rating from the Green Building Council of Australia for efficient energy usage and floor design.
“Supported by increased infrastructure spending and rapid development in the city, the Brisbane office market is among the best positioned across Asia-Pacific markets for a cyclical recovery, which offers relatively higher yield spreads to government bonds. Furthermore, the long term prospects of commercial properties in Fortitude Valley are well supported by a growing population and increasing employment.”
M&G’s core Asia property strategy has significantly gained in size and scale over the last few years with over US$3 billion in assets as of 30 March 2017. It remains one of the largest, core, open-ended institutional property funds solely investing in Asia Pacific with 25 assets across Australia, Hong Kong, Japan, Singapore and South Korea. In July, M&G appointed Richard van den Berg and Robert Walker as Fund Manager and Non-Executive Director of the strategy respectively.
We are pleased to strengthen our core Asia property portfolio by adding yet another quality asset in Australia, which is our first investment entry into the Brisbane market. This is also the fifth acquisition our core Asia property strategy has made this year, further utilising our capital queue in light of the continued investment appetite from regional and foreign capital.
Chiang Ling Ng,
Chief Executive and Chief Investment Officer