SA Motor Accident Commission to sell $600m portfolio
South Australia’s Motor Accident Commission has stepped up plans to offer its $600 million-plus property portfolio, with the state’s treasurer issuing a request for real estate experts to assist on the sale.
The offer is expected to be one of the largest government property offers of the year and comes as NSW has outlined plans to sell $1.9 billion worth of assets over the next three years.
The Insurance Commission of Western Australia is also well advanced on plans to sell more than $800 million of real estate assets in Perth, in a process handled by PwC Real Estate Advisory.
Now, the MAC, which operates as South Australia’s compulsory third party (CTP) insurer, is to join the ranks of sellers, but traditional real estate agencies are also likely to chase the key role selling the portfolio. Major firms that have handled portfolios for Mirvac, Altis, Equity Commonwealth and Primewest will see themselves as well positioned.
In SA’s last budget, Treasurer Tom Koutsantonis announced that from June 30 next year the MAC would lose its monopoly position.
It is the government’s current position that the MAC DPP is to be sold in one line to one purchaser, as a ‘portfolio sale’
Newly released documents obtained by The Australian state that the “sale of the MAC Direct Property Portfolio (DPP) is seen as an action item leading up to the commencement of private sector provision of CTP insurance in SA from July 1, 2016”.
The SA treasury and finance anticipates the property offer will be of sufficient scale to attract a portfolio bidder.
The documents say that it requires marketing and sales agency services for the divestment of the portfolio of 11 MAC properties.
“It is the government’s current position that the MAC DPP is to be sold in one line to one purchaser, as a ‘portfolio sale’,” the documents say.
However, the largest asset, a half share in 400 George St, Brisbane, bought for $195.8 million in 2013, may be dealt with separately.
In SA’s last budget, Treasurer Tom Koutsantonis announced that from June 30 next year the MAC would lose its monopoly position
“The sale of the MAC share of 400 George St, Brisbane is subject to a first right of refusal held by the co-owner,” the documents say.
In addition to the Brisbane tower, other major assets include 990 La Trobe St, in Melbourne’s Docklands, which was bought for $76.5 million in 2011 and 226 Adelaide Terrace in Perth, which was picked up for $103.5 million that year.
The portfolio also includes 2 Cyanamid St, 28-50 Cyanamid St and 105-109 William Angliss Drive, all in Laverton North, Victoria. In NSW there is 3 Talavera Rd in North Ryde.
The SA properties include 99 Gawler Place and 121 King William Street, both in Adelaide. There are also two properties in Logan Rd at Eight Mile Plains in Queensland.
The Australian last year reported that the MAC had started consultations with real estate agencies on the future of its property portfolio as it dealt with a $1.2 billion budget deficit.
This article originally appeared on www.theaustralian.com.au/property.