Weekly Transaction Update - 11th May
This week we recorded 9 major transactions worth $694M.
The largest deal this week was an acquisition by Zone Q investments of 55 Clarence Street Sydney for $255M. The acquisition is reported to be on a 3.6% passing yield. Zone Q have been active in the market in recent years spending just under $600M with the purchase of 3 assets in Perth together with 637 Flinders Street in Melbourne and another in Milsons Point. 55 Clarence Street is a 14,888sqm B Grade commercial building with a WALE of 2.3 yrs. The building, held by Eureka Funds Management in 2016 was expected to sell to Cuty Freeholds in mid 2016, however after that sale fell through, AEW stepped up to acquire the building in late 2016 for $170M. The sale to Zone Q at $255M ($17,128/sqm) provides AEW with a significant 50% capital gain in just 18 months.<