Government employee super fund tipped to buy half of Perth office tower QV1

Australian government employees’ super fund ARIA (Australian Reward Investment Alliance) is considering buying half of Perth’s QV1 office building for $300 million.

The 43-storey office tower at 250 St George Terrace was designed by architect Harry Seidler and completed in September 1991. It overlooks the Swan River.

It cost about $340 million to build.

The super fund is carrying out due diligence on the building, according to a report in the Australian Financial Review.

If the sale goes ahead it will be the biggest office deal of the year in Perth.

However, it is by no means certain. In April this year, Queensland Investment Corporation conducted due diligence on a half-share of QV1 but did not proceed with the purchase.

Up for sale is the half share owned by property group Dexus, which appointed CBRE as selling agent in August 2010. Rob Sewell, Rick Butler and Peter Agostino from CBRE are in charge of the sale.

The other half is owned by the Investa Property Group, which had pre-emptive rights to buy the half owned by Dexus.

Tenants include Shell, Chevron, Allens Arthur Robinson, Texaco, Freehills and PwC.

According to the QV1 website it is fully tenanted.

ARIA has a $2.5 billion unlisted property portfolio.

The super fund is being assisted by the Eureka Property Group, which last year helped ARIA acquire a tower on Clarence Street in Sydney for $83 million.

Office vacancies in Perth have dropped from more than 10% to 7.8% over the six months to July, with virtually no prime space available in the city.

The last major office transaction in Perth took place in June when half of 108 St George Terrace, the BankWest Tower, was sold for $260 million to US fund manager Brookfield Asset Management.