Deutsche Bank's real estate business RREEF bids $190m for ASX site
- From: The Australian
- September 29, 2011
The landmark home of the Australian Stock Exchange in Bridge Street has attracted interest from buyers keen to gain a toehold in Sydney's CBD Picture: James Croucher Source: The Australian
DEUTSCHE Bank's real estate business RREEF has bid about $190 million for the Australian Securities Exchange building in Sydney's Bridge Street, according to industry sources.
The building is held by Record Realty Trust, whose assets have been targeted by investors since receiver KordaMentha recently placed them on the market.South African-based investment bank Investec is in the final stage of due diligence on the trust's 14-storey office building at 126 Margaret Street in Brisbane for about $20m, while the trust's four-storey office building at 601 St Kilda Road in Melbourne is in the final stages of due diligence. The building of 11,000 sq m is believed to be worth about $35m.
Craig Shepherd and Mark Korda of KordaMentha were appointed receivers and managers of Record, a satellite of the failed Allco Financial Group, in April 2009 after its secured lender, Bank of Scotland International, called in a $186m loan.
Debt on its $695.8m Australian portfolio alone was $584.6m.
Since 2009, receivers have sold Record's 50 per cent stake in 1 Spring Street, Melbourne, and its 26 per cent interest in the Sydney Airport Centre at Mascot.
CB Richard Ellis was appointed to remarket the ASX building, but did not comment yesterday.
The $200m landmark property on Bridge Street has attracted interest from local buyers keen to gain a toehold in Sydney's CBD. Record bought the 20,000 sq m-plus building in 2006 from German group Deka for $235.7m.
In 2009, buyers were reportedly hoping for a $165m price tag, but since then KordaMentha has refurbished large parts of the building and it is expected to sell for $190m. RREEF's Asia-Pacific chief investment officer Paul Keogh did not comment about RREEF's interest in the Bridge Street property yesterday.
But it has been widely understood the fund has been circling Australian commercial assets and one source said RREEF had made an offer on the ASX building.
Last year, RREEF purchased an office building at 737 Bourke Street in Melbourne's Docklands for $113m from the Grollo family's Equiset.
RREEF is the real estate investment management business of Deutsche Bank's Asset Management division and one of the world's largest real estate investment managers.
It manages $US5.5bn of assets on behalf of institutional and private client investors.
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