Weekly Transaction Update - 7th December 2018
This week we recorded 28 major transactions worth $1.0bn
AMP sells Crossroads for $140M
AMP Capital's Diversified Property Fund has agreed to sell the Crossroads homemaker centre to Ashe Morgan for $140M. The deal reflects a fully leased yield of more than 7 per cent with a passing yield of about 6.75 per cent.
The 14.35ha site is situated in the Sydney metropolitan suburb of Casula within the southwestern growth corridor of Sydney. The Centre has good access off the M4 and M7 motorways. The trade area of the Centre currently contains approx 1 million people and with the significant infrastructure investment in the region, it is expected that strong population growth will continue.
The 48,400-square-metre large-format retail centre is home to 28 retailers, including anchor tenants Bunnings, The Good Guys, Freedom, Nick Scali and Fantastic Furniture. A Costco wholesale supermarket is located adjacent to the asset.
King Street Wharf Sells for $125M
It has been confirmed that property investment group Markham has bought the King Street Wharf restaurant precinct on Sydney's Darling Harbour for $125.5 million from real estate investment manager LaSalle Investment Management on a yield of 6.02%.
The asset spans 5,651sqm of retail space and feature 14 restaurants and eateries including Cargo Bar, Bungalow 8 and Meat District Co. The 14 tenants are all on long-term leases, with a weighted average lease expiry of more than 11 years.
Interest in significant food & beverage venues is strong with Lend Leases Exchange venue in Darling Square expected to be sold to a Chinese investor on a yield of circa 4%. The property is fully-leased with pre-commitments to about 12 retailers as well as the City of Sydney, the Commonwealth Bank of Australia and the operators of Chinese restaurant Golden Century.
PGIM Real Estate to sell 595 Collins Street
Interests associated with a Hong Kong group have emerged as the prospective buyer for PGIM Real Estate tower at 595 Collins Street. The tower, which is held by PGIM (previously known as Pramerica) on behalf of the Koren National Pension Service is expected to sell for about $315M with a yield of circa 5%.
According to agents, the building is 96% leased generating about $15M pa.
The South Korean fund bought the Melbourne complex in 2011, taking a 90 per cent stake in 595 Collins Street from Investa and a fund it ran, in a deal valuing the whole asset at about $130m until in 2015, PGIM took full control. The original deal was reported as reflecting an 8% yield.
The 17-storey building, which sits on a near 4,000sqm site, was completed in 1984 and has 31,778sqm of space made up of two interconnected office towers, three ground-floor shops and 145 basement car spaces. In 2007, the building had a major refurbishment.
The group are also selling its half stake in 40 Mount Street, the prominent A-Grade office building in North Sydney known as Coca Cola Place.
Deka Immobilien most of Bvlgari building
Deka Immobilien have acquired the Bvlgari building at 62 Castlereagh Street (well most of it). THe group have paid $58M for Lots 4,5,34,35 and 50 which comprise about 950sq m of space in the building, all of which is leased under a long-term lease to the luxury brand. The space is divided between three floors, with the recently modernised ground floor and first lower level being used for retail and the first floor for offices.