NORTH SYDNEY, AUSTRALIA-Heitman LLC and Abacus Property Group have formed a joint venture to invest $600 million in commercial properties in major Australian cities. The venture has already acquired its first building, an office at 32 Walker St. here for $35.6 million.
Heitman is contributing about $200 million of equity, while Abacus is providing another $66 million. Both companies will perform asset management, and Abacus will perform the property management for the planned portfolio.
Frank Wolf, CEO of the locally based Abacus, said he is pleased to join with the Chicago-based Heitman. “ Abacus’ business model is focused on pursuing stand out core-plus assets with value add characteristics. Aligning our company with Heitman, an institutional partner with complimentary investment objectives, demonstrates the successful implementation of our third party capital strategy,” Wolf said in a statement.
The Walker Street property is 13 stories with more than 70,000 square feet of office and a hotel. The building, across from the local train station, is almost completely occupied, and has average lease expirations of three years, said Heitman officials in a statement.
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