Investment heavyweights including GPT Group, Charter Hall Group and AMP Capital are lining up for a slice of CBUS Property’s two prime Melbourne office assets with expectations the buildings will together sell for more than $1 billion.
The deal, being handled by Colliers International and Savills, promises to be one of the largest direct office sales in Australia’s history and will probably set new valuation benchmarks.
The offer’s extraordinary scale puts it on par with the takeovers these players normally chase.
Up for grabs is CBUS’s building on Bourke Street in the Docklands that is fully leased to National Australia Bank on a 15-year term and the CBW building on the corner of Bourke and William streets in the heart of the central business district that consists of two towers — 181 William Street and 550 Bourke Street — as well as the Goldsbrough Lane retail precinct.
GPT and the multi-billion-dollar unlisted fund it manages, GPT Wholesale Office Fund, are believed to have made a joint bid for the CBW.
Charter Hall, which was among the final groups on 52 Martin Place that REST Industry Super bought just last month, is also thought to have made an offer on the CBW towers on behalf of a club of investors.
A third bidder, believed to be from overseas, is also in the running for the CBW.
Both Charter Hall and GPT-GWOF have previously done deals with the industry funds property powerhouse.
Meanwhile, AMP’s funds unit has emerged as a contender for CBUS’s Bourke Street tower.
It is vying against two other bidders, with acquisitive US investment giant Invesco also thought to be in the frame.
Mirvac, Dexus and Eureka Funds Management are all believed to have made preliminary offers on the building but did not make the shortlist.
The sale process was expected to close at the end of July, but strong demand for the properties has seen the sales campaign extended, with second-round offers due shortly.
Local players are likely to try to entice CBUS with the offer of participating in their own multi-billion-dollar development pipelines.
While parties and agents declined to comment, industry sources say there could be a further round of bidding as the list of prospective owners for the towers is whittled down.