9 Apr 2012

Invesco buys into police complex

Global funds giant Invesco has taken a half stake, worth about $115 million, in the new police complex on Melbourne’s Docklands being developed by Cbus Property.

The offshore group, with CLSA Capital Partners, is also looking to back a funding vehicle to support Grocon’s Swanston Square project.

That building is the centrepiece of the urban regeneration project at the CUB site on the northern edge of Melbourne’s central business district.

The City West police complex is being built at 313 Spencer Street on the site of the 11,750 square metre former Australia Post Mail Centre site on the corner with La Trobe Street.

The interest in the 12-storey police building changed hands at a price reflecting a yield of just less than 6.5 per cent. The Cbus Property asset carries a 20-year lease pre-commitment by Victoria Police .

Cbus Property controls its portion of the site outright, Australia Post retaining the other section.

The superannuation fund-backed group put the half stake in the police building on the block last year. Interest in the complex came from major players including CPP Investment Board, the Future Fund, and Eureka Funds Management.

Cbus Property has been disposing of stakes in select Melbourne assets.

GPT’s blue-chip unlisted office fund bought a 50 per cent stake in the $320 million Ernst & Young tower in Melbourne from the group at price that reflected a yield of about 6.5 per cent.

The sales demonstrate the tightening in yields at which premium properties have changed hands this year.

 Cbus Property, Invesco and sales agent John Marasco and Nick Rathgeber of Colliers International declined to comment on the off-market Melbourne deal.

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