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Weekly Transaction Update - 19th October 2018

October 19, 2018

This week we recorded 25 major transactions worth  $811M

 

Vicinity sells Lidcombe Centre

 

Vicinity Centres have sold the Lidcombe Centre on behalf of one their wholesale funds to a private investor for $145M. 

 

The 33,000sqm Centre is anchored by a Kmart, Woolworths and Aldi, together with 10 mini-majors stores, 59 specialty retailers and parking for over 1,000 cars. The WALE is 16.2 yrs. 

 

The Centre was originally developed by Newmark Capital Ltd and the APN Property Group Ltd as the Auburn Power Centre, a bulky goods project anchored by Spotlight, Anaconda, Dick Smith and a Ten Pin Bowling Alley. In November 2014, the Power Centre went through a $120m redevelopment transforming the centre from a bulky goods centre to sub-regional centre.

 

The Centre has a fully leased net income of $9.4 million and was sold on a yield of 6.49%.

Charter Hall acquires Optima Centre and National Archives in $180M deal

 

The Charter Hall Long WALE REIT has acquired 100% of the National Archive building in Chester Hill and along with the Direct Property Fund have each acquired 50% of the Optima Centre in Perth in deals totaling $180M.

 

The National Archives building in Chester Hill comprise office and warehouse space over 22,824sqm fully leased to the Commonwealth Government until 2038. The Long WALE REIT paid $54.1M for the asset on a 6.6% yield.

 

The Optima Centre in Perth comprised two fully leased commercial office buildings in Osborne Park, 5Km from the CBD. The two buildings, total 16,116sqm are leased to the West Australian Government and Cannon with a WALE of 11.2 yrs. The $125.2M ($8067/sqm) transaction by Charter Hall was completed on a 7.1% yield.

 

The Optima Centre was jointly developed by ABN Group and Macquarie Real Estate and in 2013 was sold to Blackrock, the current vendor, for $105M. 

 

The adjoining 4,800sqm building in Parkland Rd was acquired by Primewest in May 2017 for $5,700/sqm.

BlackRock Acquires 91 Phillip Street

 

Blackrock have acquired 91 Phillip Street Parramatta for $56.6M from Capital Property Funds. The 6,094sqm A Grade building has a 2.5yr WALE with significant rental upside. The property was acquired on a fully leased passing yield of 5.1%. 

 

Capital Property Funds acquired the asset in June 2015 from Fortius at a price of $30M and an initial yield of 7.9%. During its ownership, Fortius refurbished the building including replacing the chillers, upgrading the building management systems, adding end-of-trip of facilities and upgrading the lifts and foyer. 

 

Capital Property Funds are now backing the Brisbane office market with a recent acquisition of 110 Eagle Street for $35.2M. 

 

 

Centuria Industrial REIT picks up Cargo Park

 

Centuria Industrial REIT (CIP), who is the midst of a takeover battle between ESR and Propertylink are pushing aggressively to expand their platform with a further acquisition announced this week. CIP announced that it had exchanged contracts to acquire Cargo Park, 1 International Drive, Westmeadows, VIC for a price of $42.0m on a cap rate of 7.0%. 

The property is a 25,866sqm multi-tenanted industrial estate located on a prominent 5.6ha freehold site with significant exposure to the Tullamarine Freeway. The property comprises 35 office & warehouse tenancies and is 87% leased with a 2.3yr WALE. 

 

The industrial fund will use existing debt facilities to settle the transaction, due to complete next month.

 

The Vendor, Warrington Property, recently injected $7.1m to modernise the asset, including external painting, central pavement replacement, estate signage and landscaping and improvements to fire, power and air conditioning services.

 

Lend Lease Kicks Off Mt Gilead

Lend Lease Communities have kicked off the Mt Gilead development with a $46M acquisition of the first 32.7ha

 

The development, which will cover more than 200 hectares of land and deliver 1700 lots, has seen community backlash over environmental issues. 

 

Lend Lease lodged its 1st Stage Development Application in March 2018, to create 333 residential lots and 5 residual lots. The DA was finally exhibited during July and is still being assessed by Council.

 

Lend Lease submitted a second application in July for another 139 lots which supplements the first application.

 

The recent settlement of the first 32ha may suggest that the approval will be issued shortly

Other Sales

 

Scroll through the list below or head to ReSourceData for further details.

 

 

   * indicates unconfirmed price or apportionment of a portfolio sale

 

 

 

 

 

 

 

 

 

 

 

 

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