The largest deal this week was the proposed purchase by Growthpoint Properties of 836 Wellington Street Perth from Investa Office Fund for approximately $100M. The asset has been marketed by Knight Frank and is said to be under due diligence to Growthpoint. The 11,973sqm A grade commercial building is fully leased to the Federal Government until 2027 and was held by Investa at a value of $75M based on a cap rate of 6.5%. Should Growthpoint proceed, the cap rate will be closer to 4.8%. The transaction may however be scuttled by the Blackstone offer for the whole of IOF which currently has board support. The terms of the Blackstone offer are silent on the potential for this transaction.
Also this week, Deague Group announced the acquisition of 1720 Mickleham Rd Craigieburn for $86M. The 70 hectare parcel of land is suitable for a residential land subdivision but is not yet zoned for residential development. A precinct structure plan is expected to be completed in two to three years. The Deague family are moving out of the apartment market and into land subdivision as investment sales in apartments are slowing demand.
And in Sydney, the Swire group have progressed the sale of their property portfolio with the recent settlement on 12-14 Birnie Ave, Lidcombe. The 3.1ha site was previously a cold storage facility, zoned for industrial uses however with the urban renewal of the Carters Rd precinct, the site has now been rezoned for high density residential and commercial uses, allowing approx 514 apartments to be developed on the site. The site was sold for $80M.
Scroll through the list below or head to ReDataSource for further details.
* indicates unconfirmed price or apportionment of a portfolio sale