MGPA in Australian RE deal

An A$105 million acquisition of a grade A building in Perth, Australia marks the debut deal for the firm's Europe and Asia-focussed platform.


MGPA, the private equity real estate firm, has struck the first deal for its MGPA Asien Spezialfonds a core real estate fund targeting investments in Asia on behalf of German and Austrian institutional investors.

The company has bought for A$105.67 million ($111 million) the Optima Centre, a grade A office in Perth, western Australia from developer, Alcock Brown Neaves Group, and ‘entities’ managed by Macquarie Group.

The office 160,000 square feet, two building office is fully let and the main tenant is the Government of Western Australian, which accounts for 83 percent of the space.

Hamish MacDonald, MGPA’s director in Australia, said: “This asset is particularly attractive as the first investment for the Asien Spezialfonds due to its high income yield from predominantly AAA rated covenants.” He added it had the ability to capture rental growth in one of the most “exciting office markets” in the region.

MGPA held the first close of MGPA Asien Spezialfonds in September 2012 with commitments of €85 million and further closes are expected this year. The target equity haul is €500 million.

John Saunders, MGPA’s Asia CEO said: “This first investment for the ASF meets the specific objectives of the fund due to its high distribution yield and potential for income growth.”