GPT to sell stake in Sydney's MLC tower
Listed property group GPT has offered to sell its half stake in Sydney’s iconic MLC Centre to co-owner QIC.
In its 2010 annual results, the group’s share of the 67-storey, Harry Seidler-designed building was valued at $368.7 million, with the value written down by $22 million due to façade restoration work.
GPT has also sought submissions from commercial real estate firms to take it to market, should Queensland-based QIC choose not to buy its stake.
GPT is a tenant in the building, occupying the 52nd floor. It has recently renovated its own space as a demonstration for potential new tenants.
One of the tower’s major tenants – law firm Freehills, which occupies 20,000 square metres of space – is planning to move to a new $800 million office tower on Castlereagh Street being developed by Grocon, the Australian Financial Review reported.
The MLC Centre was built by Lend Lease in 1978. GPT bought a 20% share in 1990.
In 1996 GPT increased its share by 15% and QIC bought a 25% stake following MLC selling a 40% interest in the building.
In 1997, GPT and QIC picked up the remaining 40% held by MLC to become equal owners of the building.
Its share of the MLC Centre is part of GPT’s $2.7 billion office portfolio, which includes the Citigroup Centre and Australia Square in Sydney and 818 Bourke Street in Melbourne and the Melbourne Central Tower.
