Weekly Transaction Update - 24th May
This week we recorded 20 major transactions worth $1.3bn
Perron Group take 50% of Westfield Burwood
Scentre has stepped up efforts to fortify its retail portfolio, selling down a half stake in Westfield Burwood to the Perron Group in $575m deal announced this week.
Westfield decided to off load the interest in the Centre as it offered little further development potential and additional land was unlikely to be acquired, yet it remained of sufficient quality for capital partners to consider.
The Perron Group, founded by late Perth billionaire Stan Perron, is paying a 4.1 per cent premium to SCentre's book value, reflecting a yield of circa 4.8%.
Westfield Burwood is centrally located within Sydney’s Inner West, approximately 12 kilometres from the CBD. According to Shopping Centre News, the centre caters to a trade area population in excess of 464,000 residents and is ranked 43rd in Australia with total retail sales of close to $500 million and customer visitation of more than 14 million per annum.
Scentre Group and Perron Group have other longstanding co-ownerships including Westfield Woden, Westfield Airport West and Westfield Geelong.
Proceeds from the deal will initially be used to repay debt, and Scentre’s chief executive Peter Allen said the returns would generate further capital for the retail landlord to pursue its strategic objectives including its $3 billion in redevelopment opportunities across its 41-asset portfolio.
Anton Capital expected to land Oxford's Brisbane assets
Anton Capital is likely to become the highest bidder for Oxford Property's Brisbane assets in what continue to be the year’s largest property selldown.
Oxford's two Brisbane assets at 239 George St and 15 Adelaide St are set to trade for circa $225m. The two assets were held on Investa book as at June 2018 at $193M. Oxford paid a 2.2% premium to the June 2018 NTA, meaning a sale at $225M would reap a Oxford a 14% capital gain in less than 12 months.
The larger building at 239 George Street was refurbished in 2006 and spans a lettable area of about 24,234sqm with ground-floor retail space and 30 levels of office space. An apportionment of the sale price based on the Investa reported book values would suggest that 239 George Street would trade at $6,400/sqm and a 6.25% yield.
The adjoining building in Adelaide Street comprises 11,605sqm and a sale at the reported figure would likely reflect $6,008/sqm and a 7.0% reported yield.
Cushman & Wakefield is an adviser on the whole portfolio with CBRE on the Brisbane assets
Acqualand Exit Macquarie Park Commercial asset
Aqualand have offloaded a commercial asset in Macquarie Park after a 3 year holding period, pocketing a 30% capital gain and a 6% yield.
Aqualand acquired the building at 40 Talavera Rd for $54m in July 2016 from Altis Property Partners at a yield of circa 5.7%. For Aqualand, the acquisition was a short term diversification from its established residential development ambitious. The group continue to hold a range of commercial assets in North Sydney including 132 & 146 Arthur St and 15 Blue Street.
Aqualand have now agreed terms to sell the 2.5ha Macquarie Park site to LaSalle Investment Management for $70m and a reported yield of circa 6.0%.
The 2.5 ha site contains 13,251sqm of commercial space which is leased to Edwards, BAE Systems with a 4 year WALE.
The property was sold by Knight Frank.
McMullin Group in Industrial Land grab in Donnybrook