The Government of South Australia is poised to close a deal worth over $500 million for the sale of Motor Accident Commission (MAC) held properties.
The first round of bids closed last July and since then negotiations have been ongoing. The JLL listed sale is expected to be completed by the end of this month.
AMP Capital, Abacus Property Group and Anton Capital all expressed interest but Blackstone emerged as the successful bidder on the 11-property MAC portfolio.
According to JLL, an annual net income of the portfolio is just over $50 million, with the majority (33.9%) coming from the properties in Queensland.
121 King William Street and 99 Gawler Place, the two buildings located in Adelaide, earn a combined annual income of over $10 million.
The largest asset in the portfolio is a half-share in 400 George Street in Brisbane and 226 Adelaide Terrace in Perth. The SA, WA and Victoria properties all net around 20% and the single property in NSW earns 3.4%.
SA Treasurer Tom Koutsantonis said that the MAC sale part of a decision to move the provision of compulsory third party insurance to the private sector.
In a somewhat surprising move, Blackstone has reportedly unsold key office and industrial properties to funds run by listed Australian groups Charter Hall and Goodman Group.
In recent years, Blackstone has assembled a hefty $1.5 billion Australian industrial property portfolio.
In May, Blackstone revealed plans to sell a portfolio of regional and sub regional shopping centres with an estimated value of $4 billion.
Blackstone is one of the world’s leading investment firms, with over 2,200 employees and more than 20 offices worldwide. It currently has around $USD 368 billions worth of assets under its management.