Weekly Transaction Update - 13th July
This week we recorded 24 major transactions worth $1.13bn.
The largest deal this week was the acquisition by SCentre of 50% of Westfield Eastgardens for $720M. The deal, struck at a 4.25% yield continues the strong investment in major regional shopping centres, following AMP Capital's $800M acquisition of 50% of Indooroopilly in November last year and GPT's purchase of 50% of Highpoint in August for $680M. Originally built in 1987, Westfield Eastgardens was expanded in 2013 to around 84,220 square metres of total lettable area and is anchored by a Myer department store, Kmart, Big W, Target, a Hoyts cinema and three supermarkets: Woolworths, Coles and Aldi.
Also this week, the Markham Group acquired the commercial assets at Piers 8 & 9 at Walsh Bay. The purchase comprises lots 1 and 2 of a three lot strata plan on a 99 year strata leasehold with 82 years remaining. The heritage building was rebuilt in 2001 as a 8523sqm waterfront office complex and spins off a passing annual net income of $5.94m. The fully occupied building has seven tenants and is anchored by Hassell and Clemenger with a weighted average lease expiry of 5.6 years
And in Toowoomba, PPB Advisory as receivers has sold a Neighbourhood Centre to Consolidated Properties Group for approximately $50M. The Centre underwent a troubled redevelopment in recent years with fund management group Engage Capital placing the Centre into receivership in mid 2016. Engage Capital's Australian Retail Income Opportunity trusts No.1 and No. 2 owned the Centre, which was bought for $54 million in 2013, together with Ashmore City Shopping Centre on the Gold Coast, purchased for $37 million, and Deception Bay Centre, bought in 2013 for $38 million. All three Centres were placed into receivership with debts unpaid to the Commonwealth Bank. The senior debt was acquired by Pacific Alliance Group (PAG) who held junior debt positions on the portfolio.
Scroll through the list below or head to RE-Intel for further details.
* indicates unconfirmed price or apportionment of a portfolio sale