Standard Life Investments has made its third direct investment in the Asia Pacific with the acquisition of an office in Brisbane, Australia for AU$37.5 million ($35.3 million, €22.8 million).
It was acquired by SLI’s £1.3 billion Select Property Fund from Trinity Property Trust, part of the Trinity Group. Tenants include SMF Funds Management, Leighton Contractors and Bright Fox.
Trinity Property Trust recently undertook a AU$4 million upgrade, and the building has now set a rental benchmark for the Brisbane office market of AU$750 per square meter.
In May 2007, SLI made its first direct investment in the Asia Pacific property market with the acquisition of a property in Perth, Australia for AU$47 million. A second purchase was made in Sydney, Australia in January 2008 for AU$26 million.
“We are delighted to announce the acquisition of our third Australian office building for the Portfolio,” said Select Property Fund manager Andrew Jackson in a statement. “It brings the direct ‘bricks and mortar’ property exposure for the fund to 32 percent. With strong occupational demand for this quality of asset, we believe there are opportunities to add value through an ongoing active management of the building and its tenant base.”
The closed-ended Select Property Fund has both institutional and retail investors in the UK, and is one of several real estate funds of various types the firm manages. As a whole, Standard Life has £13.8 billion of property assets globally. As well as direct property assets, SLI also manages around £1.3 billion in listed real estate securities. SLI has a property team of over a 100 people and manages 18 property funds.