Morgan Stanley to spend millions on in-demand Australian property | 10 April 2013
As interest in Australian office buildings from foreign investors continues to rise, Morgan Stanley’s property subsidiary has announced it will spend up to AU$500 million on securing additional space for its own portfolio, bloomberg.com reports.
Investa Property Group, which is owned by the financial services giant, intends to buy millions of dollars’ worth of property over the next year. With increasing investment from Europe and Asia, Investa expects both office space prices and demand to rise. According to chief executive Scott MacDonald, the company has already been inundated with inquiries from parties overseas.
The upward trend has resulted in a 15 per cent boost to sales in the first quarter of this year, compared with Q1 2012. The equivalent of AU$3.5 billion worth of commercial property transactions took place during these three months.
MacDonald said that the office space market was also being bolstered by domestic real estate investment trusts, which traditionally follow the activity of offshore investors. These trusts, Investa says, were only a year ago selling assets and buying stock; now they consider buying property their best use of capital.
Thus far, invezz.com writes, Investa has acquired an office development in Melbourne’s central business district in a deal worth around AU$462 million. The building is expected to be completed by the middle of 2015.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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