Well located in Lonsdale Street, No.555 is valued at $65 million. Photo: Erin Jonasson
PRIVATE property syndicates and small-to-medium superfunds are in due diligence over more than $300 million worth of prime national office assets that are being sold by the asset manager BlackRock.
The sales campaign for the assets closed last Friday and the prospective buyers have 20 days to register an offer.
It comes amid an improving outlook for the office market, albeit at a slow pace. Leasing has also shown signs of life, with several deals being signed before the end of this year.
In the office portfolio there is 10 Barrack Street, 166 Epping Road and 107 Pitt Street, Sydney, 555 Lonsdale Street, Melbourne, and the Austar building at Robina on the Gold Coast.
The largest in Sydney is Barrack Street, worth about $60 million, which is said to appeal to the larger funds such as Abacus Funds Management and CorVal, among others.
In Melbourne, the 13-storey 555 Lonsdale Street is valued at closer to $65 million and, given its proximity to the city's financial and legal businesses, listed and wholesale funds are said to have put in offers.
BlackRock has already raised $115 million through the sale of its industrial assets to Goodman Group. The group flagged in September that it was selling its $488 million Australian property portfolio, which covered assets from Townsville to Perth.
Selling agents for the CBD offices were Jones Lang LaSalle and Colliers International, with JLL and Hartigan Bolt combined on the Epping Road property.
It has been said the appetite for the properties was encouraging with the buyers predominantly local superfunds, private investors and syndicates.
Real estate investment trusts and high-net worth Asian-based investors were said to be less involved in the campaign.
The sale of the $200 million Eclipse tower at 20 Station Street, Parramatta, to super fund Rest Industry is to be finalised this week.
The skyscraper at Parramatta is owned and developed by Leighton Properties and Grosvenor Funds Management. It is to be completed later this year and is already 80 per cent leased.