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Weekly Transaction Update - 17th February


For Week ending 17th February 2017

A quieter week for the market this week with $256M of property changing hands.

PropertyLink's sale of two industrial assets to Deutsch Asset Management for approx $73M comes at a time when PropertyLink are moving to secure 50 Ann Street, Brisbane. Since the beginning of 2016, Property Link (&their capital partners) have acquired at least $432M of property (mostly industrial assets) whilst selling out of about $100M of assets over the same period.

Another major transaction this week was the sale of 62-72 Christie Street, St Leonards for $76M by Porpriumn and Anton Capital. This will be worth watching as the existing single tenant will be vacating in July this year, leaving the asset vacant in a market with a current vacancy factor of 10%. The St Leonards precinct is however rapidly changing as a result of a significant change in the planning policies for the suburb which has seen an increase in residential developments. These changes in planning don't appear to have benefited the southern end of Christie Street which remains B3 zone however there may be further changes ahead, especially given that this property is within 400 metres of the new Sydney Metro railway station. An immediate conversion to residential is unlikely given the purchase price represents over $6,800/sqm of NLA and over $26,900/sqm of site area, however a quick re-lease and sell at 7% may work if rents and incentives work in the Proprium's favour otherwise await a residential conversion in years to come.

GPT's purchase of a key site in Parramatta is also worth mentioning as it demonstrates that Sydney's second / third CBD has good long term capacity to attract institutional capital.

A large number of smaller suburban assets in the capital cities also changed hands Scoll through the list below or head to the Australian Property Transaction Data Map for further details.

This Weeks deals