QIC Global Real Estate settled on the $1bn acquisition of 50% stakes in Pacific Werribee and Pacific Epping Plaza centres, both in Victoria. Both are large scale centres which suit QIC. Pacific Werribee is 107,602sqm and a MAT of $607.32 million whilst Pacific Epping has 68,429sq m and an MAT of $431.91m. The deal with QIC represents a yield of circa 4.5%. The vendor, Pacific Group of Companies which was established by Maurice Alter retains the remaining 50% interest.
Also this week, Mirvac confirmed that it exercised a pre-emptive bid for the 50% interest Blackstone was offering to the market at a price of $850m. Mirvac advised that they had capital support from ISPT for the transaction and a nomination provision allowed Mirvac to nominate ISPT to take the buyers position. Charter Hall were the highest alternative party but were kicked out by Mirvacs pre-emptive had been put in place when Mirvac originally sold the 50% interest to Blackstone. The deal represents a 4.25% yield. Mirvac's ASX release advised the deal was at $721.9M which may reflect the capital works deductions given the current works being undertaken to the food court area and perhaps a stamp duty saving depending on the contractual arrangements currently held by Blackstone.
Also this week, Charter Hall Retail REIT and its Charter Hall Prime Retail Fund, (largely sponsored by MTAA Super) acquired the Gateway Plaza shopping centre from Vicinity for $117M. The Centre is based in Leopold, VIC, about 10km east of the Geelong CBD and 85km southwest of the Melbourne CBD. Vicinity completed an $85m redevelopment in March 2017 and it now comprises a 33,510sqm shopping centre anchored by a full-line Coles and Liquorland, Aldi, Kmart and 54 specialties and a freestanding Bunnings, together with car parking for 1,117 vehicles. The Centre traded on a yield of circa 6.5%.
Acqualand continue to off load assets with Google buying up a site in Pyrmont currently occupied by Channel 7 for around $150M. Aqualand bought the site in 2015 from a consortium including Citta Property Group, Seven Group and Greg Shand of Barana Group for around $180m. Whilst Aqualand have sold the larger building, they will hold onto a small development parcel next door Channel 7's lease expires in November and are due to move out, allowing Google to expand its presence in the area as they already occupy the entire workplace6 building across the road.
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* indicates unconfirmed price or apportionment of a portfolio sale