Australian property group scouts brokers to manage sale of 900 Third Avenue stake

August 10, 2011 02:49PM

Investa Property Group, one of Australia’s largest owners and managers of real estate, is finally interviewing New York City-based brokers to manage the sale of its 49 percent stake in 900 Third Avenue, the New York Post reported.

In 2002, the Sydney-based company, then known as ING Clarion, acquired the stake from the Paramount Group for only $107.7 million. Paramount, which bought the property in 1999, retained the controlling interest.

The owners had an equal say on decisions and a buy/sell agreement, according to a 2003 Commercial Real Estate Direct report cited by the Post. The building carries a $270 million mortgage from 2007.

The 595,105-square-foot Class A tower is approximately 90 percent leased, the Post said.

Investa took over management of the property earlier this year when it bought out the stake owned by Clarion’s former manager, the Dutch banking company ING Group, and unveiled plans to have the fund focus on Australian markets. As a result, it is shedding assets outside the country.

Experts expect the company will receive around $230 million for its share. [Post]