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Weekly Transaction Update - 19th October 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