Standard Life Investments Select Property Fund sells in Australia to reinvest in Japan
Standard Life Investments Select Property Fund offload Brisbane property.
Standard Life Investments Select Property Fund has completed the sale of 82 Eagle Street – a prime asset in Brisbane, Australia – to Japanese property group, Jen Retail Properties Ltd in a deal worth AUS$24.5 million.
The disposal is part of a strategic initiative by the Select Property Fund, a Property Unit Trust currently only available to UK investors, to reduce exposure to real estate in Australia and re-focus allocations to recovering markets. Earlier in the year, the Select Property Fund sold another Australian asset – 16 Spring Street in Sydney.
The proceeds of both sales will be re-invested in high quality assets in Tokyo where the Select Property Fund has identified strong growth opportunities. The move will also be the Fund’s first exposure to direct real estate assets in Japan where it already allocates to the listed real estate market. Standard Life Investments retains assets in the Perth office property market, which the global investment manager believes is a more robust market than Sydney and Brisbane.
Andrew Jackson, Head of Wholesale and Listed Real Estate Funds, Standard Life Investments, said: “This is the right time and the right decision for the Select Property Fund – a decision informed by our ‘House View’, which is underpinned by our research team’s rigorous analysis of the Japanese market. We’re backing the concept that ‘Abenomics’ will have a positive knock-on impact on real estate which, in turn, will deliver sustainable returns.”
McVay Real Estate advised Standard Life Investments on the sale of 82 Eagle Street.
