Weekly Transaction Update - 31st August
This week we recorded 18 major transactions worth close to $820M.
The largest single deal announced this week, was the acquisition by the Mirvac Industrial Logistics Partnership of a 50% stake in Mirvac's Calibre industrial estate at Michinbury. Mirvac and Morgan Stanley established the partnership in early 2018 with the sale of two Victorian assets, with Mirvac holding a 10% interest in the partnership. Mirvac held 100% of the assets on their balance sheets at $155M, based on recent valuations with an average cap rate of around 6.12%, however the sale to the partnership has been confirmed at $125 million, reflecting a fully leased passing yield at project completion of 5.14 per cent.
A larger deal, involving two assets between Brookfield and AMP Capital was also announced this week. The two assets, fronting Carrington Street, adjoin the Wynyard Place development which AMP Capital and Brookfield hold on a 50:50 basis. We have apportioned the reported sale price of $250M across the two assets on a square metre basis which reveals that AMP Capital have likely paid $109M for 50 Carrington Street, and $141M for 60 Carrington Street. Brookfield acquired No 50 for around $85.5M in 2016 and No 60 for around $116M in 2015. Brookfield and AMP Capital may look to repeat the development partnership with another major development above Wynyard in years to come.
In other deals this week, AEW Capital are reported to have acquired 19 Harris Street, Ultimo from UBS Asset Management for around $140M. The 12,568sqm building was acquired by UBS in July 2015 for $91M. The building was originally developed by Lend Lease as part of the Jacksons Landing development in that area.
Scroll through the list below or head to ReDataSource for further details.
* indicates unconfirmed price or apportionment of a portfolio sale