Pramerica Real Estate Investors (PREI), the real estate investment management business of Parsippany-based Prudential Financial, has purchased a majority stake in 595 Collins Street, a large office in Melbourne, on behalf of its Asia Real Estate Fund.
PREI declined to divulge the price paid for the 31,778 square meter office in an announcement on the deal today, however the Sydney Morning Post reported the stake in the building changed hands for approximately A$130 million (€95.5 million; $136 million).
Broderick Storie, chief operating officer at Pramerica’s Asia business said the firm was attracted to the investment on the back of falling vacancy rates and rising rents in Melbourne’s central business district. “This property represents the type of value opportunity we seek for our investors,” he said.
Under the terms of the transaction, Investa, which was acquired and delisted by Morgan Stanley Real Estate Investing in September 2007, will retain property management responsibilities. The building is currently 100 percent leased.
PREI’s Asia business had gross assets under management of $7.3 billion and net assets of $3.9 billion as of September 30, 2010. The firm operates with 75 associates across offices in Singapore, Hong Kong and Tokyo.