This last fortnight has been quiet as expected with 7 significant transactions across the market valued at $252M.
One of the interesting deals announced this week was the aggregation by a developer of around 40 apartments in a block of 45. In this instance, the developer is seeking to use the recently introduce NSW Strata Laws which will require the final 5 sellers to sell their interests. The developer, a student accommodation group, has thus far spent (or committed to spend $50M. The site has a mixed use zoning which will allow for the redevelopment of the property to a height of 45 metres (15 storeys) vs the 3-4 that currently exist. We will keep an eye out on this one to see what transpires.
The largest deal this period was the acquisition by Charter Halls Long WALE REIT of 10 SUEZ Recycling & Recovery Centres with a 15 year leaseback. This is not your traditional type of industrial property, however the assets in the portfolio sit on typical industrial lands and will have an alternate use at the end of the lease if not renewed. The ability for SUEZ to located these operations elsewhere will be difficult and as we will likely be producing waste for some time to come, there is a good chance SUEZ or their successors will remain in these sites.
Two other notable deals were completed this week, AMP Capital's acquisition of 33 Park Rd Milton for $48M and the acquisition of Springhill Shopping Centre for $43.5M.