This week we recorded just 12 major transactions worth $347m
Alexandria Land for Data Centre
Data Centre operator and developer Equinix has settled on a transfer of land at 506 Gardeners Rd Alexandria for $110M as it expands its Data Centre platform.
The 3.9ha site sale was settled in August last year from what is likely to be a related party, but only just hit the public record. The site contains the group's existing SY4 facility which contains a 27,830sqm facility plus approx 25,000 sqm of vacant land for the creation of the new facility, SY5.
Equinix commenced construction of the new $90M facility covering a further 25,000sqm of floor space. The first phase of the new facility, which is targeted to open in Q3 2019 and will offer an initial capacity of 1,825 cabinets and when fully built will become the largest to date for Equinix in Australia with 9,225 cabinets.
Equinix have a national footprint of 16 IBX data centres across Sydney, Melbourne, Perth, Canberra, Adelaide and Brisbane, with eight in Sydney. The rapid expansion comes after the group acquired Australian data center provider Metronode and its 10 data centers in April 2018.
Altis pick up Completed Unsold Units
Altis Property Group have acquired 61 completed but unsold units in one line from the receivers appointed to Developer Gondon after 18 months of work out by the bank.
The project which contains 130 apartments was completed in late 2017, however 66 of the apartments were able to settle following restrictive lending practices, tighter capital controls from China and falling valuations in an oversupplied market. A substantial number of pre-sale contracts were terminated due to the purchasers default.
The creditors, led by Pacific Alliance Group allowed the developer to continue to sell the product throughout most of 2018, however as the market dried up, few sales were able to be completed.
PAG appointed the receivers to the Developer and the Builder (a related party) with secured creditors owed $33.8M and unsecured creditors $23.0M. According to the receiver the market value of the stock was $52M.
Altis Property Group picked up 61 units in one line for $35.0M, which effectively repaid the secured creditors. At an average price of $573,000 per unit, the discount to market represents approx 32%.
Altis intend to hold the units as leased investment stock and await a better market.
Colliers handled the sale of the site for the receiver.
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* indicates unconfirmed price or apportionment of a portfolio sale