Weekly Transaction Update - 9th March
This week we recorded only 9 major deals worth $302M.
The largest deal this week was the sale by Cromwell of 88 Musk Ave, Kelvin Grove to QUT. The sale at $84.0M represents a yield of 7.25% on the income from the tenants. Cromwell acquired the site as a fund through from a company related to one of Cromwell's directors. Cromwell paid $88M for the land and construction over 2007 and 2008 and received an 18 month rental guarantee. The property was ultimately leased to Boral and QUT with a 4 year WALE yet retains a 17% vacancy. This was not a great deal for Cromwell.
Real Estate Capital Asia Partners Fund sold 2 Meredith Street Bankstown this week for $75.0M. The Fund acquired the asset just under 3 years ago for $52.5M. The property is mainly occupied by the NSW Police Force and Centrelink. The seven-storey, 3729sq m building is almost fully leased, with a net passing income of $5.4m. At the purchase price of $74M, the purchaser, Sandran Capital will enjoy a 7.4% yield.
The new Logos Industrial Fund has acquired 2 Moore Street Banksmeadow for $72.4M. The property sits on the western edge of the Port Botany industrial area and was sold by a private syndicate of 22 investors who paid $26.2M in 2008. Early last year the syndicate were seeking government support to rezone the land for residential uses following Botany Council's rezoning of the site to light industry.
A Scroll through the list below or head to RE-Intel for further details.
* indicates unconfirmed price