Weekly Transaction Update - 3rd March
This week we recorded 16 major deals worth $647M. Just over half of the transaction this week were in the Development sector $325M with the major deal being the CBUS site consolidation play in Queen Street Melbourne.
CBUS swooped on the assets after two Singaporean developers called a truce to their bitter disputes with their adjoining developments.
Singapore’s Chip Eng Seng was pursuing a 71-storey Tower Melbourne skyscraper on its site at 150 Queen Street (Cnr Bourke) and has had to refund investor deposits for 556 apartments last November following a four-year legal battle with its neighbour.
Colonial Range, owns 140 Queen Street and, across the laneway to the rear, 27 McKillop Street which they had hoped to develop into serviced apartments before their planning permit lapsed.
On news that the sites may come to market, CBUS moved to secure an option the 11-storey office building at 423 Bourke on the corner of McKillop Street. CBUS now seem to have acquired both 140 and 150 Queen Street and 47 mcKillop Street, providing a future development site of some 3,000sqm. The site will sit next to 405 Bourke Street which a 61,500sqm office tower is under construction by Brookfield.
Also this week, the sale of Soul Pattinson in Pitt Street Mall for $100M sparked interest, having been held by the Washington H Soul Pattinson and Company for some 145 years. The store will close following settlement and likely be refurbished for another lux fashion brand.
Also this week, Marprop together with a German pension fund have acquired 157 Walker Street for $78M or $8,738/sqm. Since the beginning of 2017, some 18 assets have traded in North Sydney at an average capital value of $10,733/sqm. Whilst the asset has a 17% vacancy and a short 1.5 year WALE, resulting in a hefty capital incentive budget, there is upside in the medium term from this location which is near to the proposed North Sydney Metro station and the new Channel 9 development by Winton.
A Scroll through the list below or head to RE-Intel for further details.
* indicates unconfirmed price