Korean National Pension Fund makes pitch for tower Turi Condon From: The Australian May 13, 2010 12:00AM
SOVEREIGN wealth fund the Korean National Pension Fund, troubled property company Valad Property Group and Queensland fund manager Cromwell Group are among those bidding for a half share of Stockland's Brisbane landmark office tower, Waterfront Place, according to industry sources.
The 50 per cent stake, worth about $250 million, had been informally on the market since last year with a formal sales campaign starting in early April.
The Korean National Pension Fund is the latest sovereign fund to invest in Australia, paying $685m for blue-chip Sydney office tower Aurora Place in November.
Stockland has a first right of refusal, but also has last right say over the stake, according to market sources.
The stake in the 36-level tower on the Brisbane River is owned by the mostly retail unitholders in the Stockland's Direct Office Trust No 1 which has a separate board and responsible entity. Its book value was $217.5m at December.
Neither Stockland nor its marketing agent Jones Lang LaSalle would comment yesterday. At the beginning of the sales campaign, JLL Queensland managing director Geoff McIntyre said the half share of Waterfront Place would be offered to local institutions, sovereign wealth funds and groups in Europe and Asia.
A spokesperson for Valad yesterday declined to comment on Waterfront Place, but said the group was working on some opportunities for mandates. In its own right,Valad would not have the balance-sheet strength for a big acquisition, analysts said.
Neither Cromwell nor the Korean National Pension Fund could be reached for comment yesterday.
In January, South African group Redefine Income Fund took a 13.04 per cent stake in Cromwell through a placement.
Expressions of interest also close this week on another Brisbane office tower, Santos headquarters on Turbot Street.
more info from: http://www.theaustralian.com.au/business/property/korean-national-pension-fund-makes-pitch-for-tower/story-e6frg9gx-1225865727448
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