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November 8, 2019

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Weekly Transaction Update - 22nd March

March 23, 2019

This week we recorded 10 major transactions worth $379M

 

Point Cook Residential in Demand

 

Chinese developer Dahua, has extended its residential land bank with a $140 million deal to buy 98 hectares of land in Point Cook in Melbourne's south-west.

 

The site is within the Melbourne Urban Growth Boundary and the Aviators Field Precinct Structure Plan which is yet to be finalised. The site has a large wetland area to the east of the site which will likely impact on the final lot yield.

 

The acquisition extends Dahua's control of the precinct having acquired a number of adjoining land parcels in 2016, including;

  • 50A Hacketts Road, a 103-hectare site with the potential for 1800 lots which was acquired on a conditional basis for close to $200m, 

  • a 41-hectare site on Aviation Road acquired for $84 million with a yield of 650 lots and

  • a nearby site on Point Cook Road for with 650 lots which was acquired for $74 million

 

The vendor of the latest sale, Aviation 3030 Pty Ltd was placed into provisional liquidation by ASIC in September 2018 for seeking to raise over $10M of capital from over 70 investors without issuing a prospectus. 

 

The director of Aviation 3030 Pty Ltd, Cambodian-born, Hakly Lao, also pursued the development of another land finance project, the VKK Investment Unit Trust, which was found to have incorrectly raised $22 million from 125 investors for a project in Keysborough. That company was also wound up by ASIC in 2018.

Canberra Office Sold for $59M

 

Sydney-based Marprop has acquired an office block at 14 Moore Street in Canberra from Quintessential Equity for $59 million. 

 

Marprop, assumed to be acting for the JV partner GLL Real Estate Partners, are extending their ties with the German-based funds manager following a purchase on St Kilda Road for close to $65m and a North Sydney building for $78m.

 

The 11,070sqm, 13 level building in Canberra was fully occupied and the sale to Marprop showed a 7.08% initial yield and a WALE of 4.33 years.

 

Quintessential previously acquired the in June 2014 for just $23m following the relocation of two government tenants which left the building 80% vacant. Quintessential negotiated a six-month settlement and re-invigorated a leasing campaign, to attract tenants to the building on competitive terms, managing to secure tenants for 30% of the space prior to settlement.

 

The sale was brokered by Colliers International and CBRE.

Abacus Sell Liverpool Plaza

 

Abacus Property Group has sold Liverpool Plaza to an undisclosed local group for $46 million.

 

The Centre comprises an Aldi Supermarket with approximately 50 specialties. Abacus acquired the asset and two adjoining sites in 2004 for $37.1M and underwent a full refurbishment in 2013 to modernise its internal retail malls, improve entry canopies and upgrade external facades. 

 

In 2014, Abacus lodged a planning application to rezone the site for a mixed use development, to increase the FSR from 3:1 to 6:1 and to increase the height limit from 18m to 100m. The application was approved however no further action has taken place. 

 

Abacus says that although the company was not initially trying to actively sell Liverpool Plaza, and an off market approach to them fell in line with the company's strategy to focus more on its "super convenience" shopping centres; Ashfield in Sydney and Lutwyche in Brisbane.

Cache Logistics buys into Altona

 

Singapore's listed industrial REIT, Cache Logistics has acquired an industrial asset from GAW Capital in Altona for $41.2M. 

 

The property at 182 Maidstone Street Altona comprises a 34,000sqm warehouse on a 8.3ha site.

 

GAW Capital and Abacus acquired the property in October 2016 for $30.0M with a 12 month lease term remaining to Fronterra who already had plans in place to vacate the building. 

 

The property is now partially re-leased on a new 3 year deal to Congress Logistics who occupy approx 25,800sqm. The balance of the space is currently for lease however a 2 year rent guarantee by GAW capital will be provided to the purchaser as part of the transaction. 

 

Since 2015, Cache Logisitcs has acquired 17 industrial assets across Australia worth $400M. The assets were acquired at a weighted average cap rate of 7.0%. The Altona transaction was completed on an initial yield of 6.8%.

 

The deal was brokered by CBRE. 

Review our other transaction data at ReSourceData.

 

    * indicates unconfirmed price or apportionment of a portfolio sale

 

 

 

 

 

 

 

 

 

 

 

 

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