Weekly Transaction Update - 18th May
This week we recorded 14 major transactions worth $859M.
The largest deal this week was an acquisition by GIC of 343 Albert Street Brisbane, home to part of Suncorp's business. GIC was represented in the deal by Charter Hall who are in the race to re-house Suncorp in a new building at 370 Queen Street. Suncorp staff are now spread over 38,000sq m at three sites across Brisbane’s CBD but the leases expire in the next four years, prompting the move to consolidate. Charter Hall are up against Mirvac who have plans for 80 Ann Street announcing this week that they are likely to be backed by capital from M&G Real Estate. However with Suncorp being an existing tenant of Charter Hall's Brisbane Square building and now with 343 Albert Street effectively under Charter Hall's "control", the prospects of a successful transition by Suncorp to 370 Queen Street have firmed up. 343 Albert Street also holds an approval for a new 30 storey commercial tower which GIC could pursue if feasible. The acquisition by GIC was completed on a yield of 6.8%.
Also in Brisbane this week, the Urban Developer reported that Dexus acquired 370 Wickham Street Fortitude Valley for $91M and a yield of 6%. Positioned on a 7123 sq m site, the modern, state-of-the art showroom facility is leased to the ASX-listed Auto Sport Group until 2026 with rare triple net lease structures. The combined buildings cover 13,288sq m of office and showroom space across two levels and a hardstand and external area of 2,556 square metres. Dexus made no formal announcement in relation to the sale which appears to represent a departure from the traditional office, retail or industrial asset mix.
Also this week, the Charter Hall Retail REIT concluded a sale of Thornleigh Marketplace in Sydney for $43.1M (5.3% yield) and a Coles based Centre in Earlwood for $28.7M (4.2% yield).
Whilst not yet confirmed, two other major assets in Perth are also reported to be close to selling. Charter Hall's 202 Pier Street asset in Perth is likely to be acquired by Elanor Investments Group for $125M whilst the Optima Centre at 133 Hasler Rd Osborne Park is in due diligence by an offshore group for circa $130M.
Also mooted is a sale of 1 King Street Brisbane by Impact Investment Group to US Giant Heitman for $170M. Impact acquired the asset from Lend Lease in 2015 for about $130M.
Scroll through the list below or head to ReDataSource for further details.
* indicates unconfirmed price or apportionment of a portfolio sale