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Weekly Transaction Update - 30th March


This week we recorded 16 major transactions worth $1.67Bn

Dexus Take out 80 Collins St

Dexus appears to have won the race for QIC's 80 Collins Street in a deal worth between $1.3Bn and $1.4bn.

QIC offered up a full or half interest in the assets which comprise the existing 52 level Nauru House and the development opportunity sitting in front of it at 80 Collins Street which comprises a 39-storey office tower, along with a 300-room hotel and retail complex through the podium levels of around 5,800 square metres. The new "south" tower is due for completion in 2020.

Leasing of the new tower has progressed well with Macquarie signed up for around 6000 square metres, along with DLA Piper and McKinsey who have recently committed. Law firm Ashurst is also understood to be close to signing up for 4500 square metres.

Singapore's SilverNeedle will operate the boutique hotel under its NEXT brand on the Little Collins Street side of the site.

Dexus were competing with Charter Hall and Mirvac in the acquisition which is expected to yield around 5%.

QIC appointed JLL's and Savills to handle the sale process.

Eastern Creek Warehouse Sale

A company associated with Greenlit brands has sold a 6.1ha parcel of land at 1 Eucalyptus Place Eastern Creek to a swiss based group for $99.55M.

The property is the distribution facility for Best & Less and comprises a 35,000sqm warehouse with associated office space. The site was originally developed by Australand in 2011.

The purchaser, Swiss Pillar Investments is a subsidiary of Swiss Re an account managed by AMP Capital. Swiss Re (via AMP Capital) also acquired Marketplace Warner for $78M in October 2017 and 469 LaTrobe Street Melbourne VIC for $160M in November 2017.

The vendor, Greenlit brands operates Fantastic Furniture, Freedom, Best & Less, Snooze, Harris Scarfe, Plush, Postie and Original Mattress Factory. It's parent company, the Frankfurt-listed integrated global retail group, Steinhoff International has been under investigation after allegations that management used off-balance-sheet entities to hide losses and artificially pump up its market value. The Australian business operates independently and had attempted to distance itself from their parent.

Cedar Woods buys up land in Swan Valley

Cedar Woods has expanded its Western Australian land holdings with the acquisition of a 20.2 hectare site directly adjacent to the Company’s best-selling project, Ariella, in Brabham.

The land was purchased for $28.25 million, with payment on deferred terms and settlement in July 2019, from private landowners Minx Pty Ltd and West Swan Pty Ltd.

Cedar Woods’ Western Australian State Manager, Ben Rosser, said the purchase was consistent with the Company’s history of counter-cyclical acquistions and capitalised on significant benefits by being adjacent to an existing estate of the Company.

The property is zoned Urban and is expected to yield approximately 380 lots.

Quadra Pacific Sell 133 Mary Street

ARA Asset Management Limited announced that it has acquired 133 Mary Street located in the Midtown precinct of Brisbane, via one of its private real estate funds at a price believed to be around $85m.

The 15 level, 12,903 sqm B Grade asset was recently refurbished with ground floor external treatments, a new foyer and end of trip facilities.

Assistant Group CEO and CEO of ARA Private Funds, Mr Ng Beng Tiong, said: “The successful acquisition of 133 Mary Street allows us to showcase our proven track record in repositioning and transforming assets. ARA has a strong investor-operator track record, and we look forward to enhancing this asset by developing a new commercial tower to significantly increase its net lettable area and capitalise on positive rental reversions in the Brisbane office sector.”

The vendor, Quadra Pacific, sold both its Brisbane assets at 133 Mary Street and 288 Edward Street in separate deals with Heitman & Marquette Properties announcing earlier in March the acquisition of 288 Edwards Street for $115m.

The transaction was brokered by JLL.

Review our other transaction data at ReSourceData.

* indicates unconfirmed price or apportionment of a portfolio sale

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