Oxford looks to shift $1bn of Investa towers

Canada’s Oxford Properties is turning its attention to a carve-up of close to $1bn worth of ­Investa towers.

Norwich House in Sydney.

With the long battle for the Investa Office Fund finally over, Canada’s Oxford Properties Group is turning its attention to a carve-up of close to $1 billion worth of ­towers.

The offer of the properties out of the $4.3bn portfolio had been expected by market players, with the Investa business, which will retain oversight of the now delisted trust, already fielding hefty unsolicited approaches.

Senior sources said Oxford was not expected to move too hastily and the focus was on select properties that did not fit its long-term-hold criteria in key markets, rather than a larger portfolio in one line.

In a play that began before the takeover took effect, parties are targeting the purchase of 66 St Georges Terrace in the Perth CBD in a deal worth about $75 million.

The parties and agents Cushman & Wakefield have declined to comment on the prospective deal that would see the A-grade building trade at a premium to its book value.

The building has 11 levels of ­office space and floor plates of about 1007sq m.

Major tenants include Subsea, Manpower and Dimension Data and there are two ground-floor retailers — Australia Post and a cafe — as well as 66 car bays and storage areas.

IOF has been pulling back from Perth to concentrate on key development projects in Sydney, including 388 George Street which it is undertaking with Brookfield. In Sydney, the $300m Norwich House has also been chased by ­select buyers with Cushman & Wakefield and Savills likely to handle bidding.

The 26-storey office tower sits in a prime location in a reinvigorated precinct in the heart of the Sydney CBD. With easily sub­divisible floor plates, the building at 6 O’Connell Street appeals to the boutique office users.

The 14,596sq m office tower is home to more than 40 tenants and also sports Restaurant Hubert and Balcon by Tapavino as tenants.

Investors are also preparing for the offer of 239 George Street in Brisbane’s legal and government precinct in the North Quarter. The B-grade building spans a net lettable area of 24,235sq m and tenants include City Beach, Cullen Services No 1 and Level 27.

CBRE and Cushman & Wakefield are likely to handle that sale.

A second tranche of properties has been proposed that is likely to include another Brisbane tower, a Canberra building, and more assets in Sydney, that could take the overall quantum to about $1bn.