Marprop in capital deal for offices

Sydney-based Marprop has snapped up an office block in Canberra from Quintessential Equity in a $59 million deal.

Sydney-based Marprop has snapped up an office block in Canberra from Quintessential Equity in a $59 million deal as it expands its mandate business.

The company, thought to be acting for German-based funds manager GLL Real Estate Partners, bought 14 Moore Street.

Marprop is boosting its ties with the German-based funds manager and the pair last year bought an office block on Melbourne’s St Kilda Road for close to $65m and a North Sydney building for $78m.

Marprop chief executive James Marshall last year confirmed the firm had started a joint venture with GLL but ­declined to comment yesterday. The German-based fund manager was acquired by Macquarie Group in February last year.

The Moore Street building was picked up by Quintessential for just $23m in June 2014 but it overhauled the property into a modern complex.

The 11,070sq m asset was lifted into a modern office building with 13 levels of office space, ground-floor retail and 77 car bays over two basement floors.

When the Shane Quinn-led operation took over it was only 19 per cent occupied, after two government tenants had left.

The fund manager undertook a leasing campaign to attract quality tenants. It now houses 15 occupants including Aurecon, the Administrative Appeals Tribunal, CBRE, the Fair Work Commission and Leidos.

The sale showed a 7.08 per cent initial yield and property had a 4.33 year weighted average lease expiry by income.

Paul Powderly and Matthew Winter of Colliers International and Scott Gray-Spencer and Adrian Woolgar of CBRE brokered the sale but declined to comment.

Quintessential is now selling nearby 10 Moore Street with that 6709sq m building sporting Optus as a major tenant.