Weekly Transaction Update - 18th August
A quiet start to the week ended with a bang on Friday with 11 deals announced all up, totaling just under $800M.
The largest single deal was the acquisition by Ascendas Singbridge of 66 Goulburn Street Sydney for $252M. The vendor, GDI acquired the 23,000sqm property in 2014 for $136M ($5,913psm). At the time the property was 26% vacant with a further 50% of tenants due to expire within 2 years. GDI anticipated a pick up in leasing demand and felt that the building's floor plate provided flexibility for whole floor or multiple tenancies each with external windows. The property now is fully leased with a 5 year WALE.
In a separate transaction, GDI also announced the acquisition of the Ikea Innaloo store in WA for $143.5M. The 27,000sqm store was built in 2008 and has a number of adjacent homemaker tenancies in 2,933sqm together with parking for 1,000 cars. The asset has a 5 year WALE and was acquired on a 7.8% passing yield. GDI will put the asset into a new retail trust with gearing of 41% and a proposed commencing yield of 8% pa.
Also this week, Mirvac announced the acquisition from Payce of the remaining 50% interests in two shopping centres it already part owned, East Village, Zetland and South Village, Kirrawee. East Village was acquired for $155.3M which reflects a yield of 5.1% whilst South Village is expected to be acquired for approximately $70.0M on a yield of 6% upon completion. Both centres sit beneath residential communties developed by Payce.
There were a number of other deals this week. Scroll through the list below or head to Propel for further details.
* indicates unconfirmed price