Weekly Transaction Update - 22nd September
This week we recorded 10 major deals for a total value of $518M.
The largest deal was the sale of 1 Pacific Highway North Sydney for $114M. AMP Capital decided to offload this investment on behalf of its Middle Eastern private client after holding the prime site for over 10 years. The sale to an unnamed Asian investor represents a rate per meter of $14,983/sqm which is the highest rate for a property in North Sydney. The site has an unusual footprint but retains some development potential with a maximum height limit of 115m (approx 34 levels) as compared to the current 12 level building. A consolidation of the site with Stocklands 77 Pacific Highway would provide an exception landmark development site. Stockland hold that site as at June 2017 at a book value of $72.9M or $7,761/sqm (though this is likely to be under market value).
Also this week CBUS announced the acquisition of the Mercure Melbourne Treasury Gardens Hotel in Spring Street for $70M. The Mecure is 2 doors down from CBUS' recent residential development at 35 Spring Street and CBUS plan to capitalise on their experience with a similar up market residential development. The site was sold by the Abu Dhabi Investment Authority which purchased it four years ago as part of a portfolio of 31 hotels in an $800 million deal with Tourism Asset Holdings.
There were a number of other deals this week. Scroll through the list below or head to Propel for further details.
* indicates unconfirmed price