owner of its first Australian
HOUSTON-Hines Global REIT, a real estate investment trust sponsored by local real estate company Hines, made its first move on the Australian continent, acquiring the class A, 158-682-square-foot 144 Montague Road office building in South Brisbane. The REIT paid $91.6 million to Australian company Empirica Management Ltd. to add the fully leased, three-year-old building to its international CRE portfolio.
One tenant occupies the six-story office building; Ausenco Ltd, a publically traded company specializing in engineering and project management services has the space through 2021. According to a press release from Hines detailing the commercial real estate transaction, the long-term lease was just one of the deal’s appeals. Another is the ability to diversify in a country with a stable and growing economy.
“We believe this well-located asset in the fast-growing submarket of South Brisbane will be a great addition to our portfolio,” said Charles Hazen, president and CEO of Hines Global REIT in a prepared statement. “Australia is an attractive market for us for many reasons, including its transparent real estate markets and cap rates that have yet to compress as they have in the U.S. and Europe.”
The release was not too forthcoming regarding anything in the Australian pipeline, though Hines senior managing director Robert Hollister noted that the company is examining other potential opportunities on the continent. The release does mention, however, that Hines director David Warneford relocated from the firm’s Abu Dhabi office to Sydney, his hometown, to establish an office in Australia Square there.