In one of the largest single office sales of 2016, Twenty8 Freshwater Place tower has been sold for $286 million.

One of the largest single office sales of 2016 has seen the Twenty8 Freshwater Place tower at 28 Freshwater Place, Southbank, Victoria, change hands at $286 million. One of the vendors was Frasers Property Australia, formerly Australand, now a diverse property group under the umbrella of one of Singapore’s top property companies, Frasers Centrepoint Limited, with total assets of approximately $23 billion. The other, GPT Wholesale Office Fund, was launched in 2006 and currently with interests in eighteen office assets with a value of $6.1 billion in Australia's CBD office markets.

The purchaser was JP Morgan Asset Management’s direct real estate investment fund, the Asia Pacific fund. JP Morgan has a history dating back over 200 years and its Strategic Property Fund is worth $24 billion. JP Morgan bought the Asia Pacific fund from Aviva in 2014. The sale of the tower was negotiated by John Marasco and Nick Rathgeber of Colliers International Melbourne. 

According to Southbank Cityscope, Twenty8 Freshwater Place is a 26-level building with retail space on the ground level,  19 levels of office space and six levels of car parking over 33,520 sqm. With a 5-star NABERS rating, the building’s tenants include Linkedin Australia, Parsons Brinckenhoff and the Adecco Group. 

The property last traded at $115 million in 2007. This sale, at $286 million, represented an initial yield of 6.6% on a passing income of $18.9 million.