Challenger continues to offload direct assets with the sale this week of 30 Makerston Street Brisbane to Sentinel Property Group for $103m. The 14 level office building spans 14,640sq m and it is fully leased with a 4.63 year weighted average lease expiry. The sale price represents a passing yield of 7.85% and a capital value of $7,036/sqm. Challenger held the asset in its books based on the June 2018 valuation of just $70.7M. Challenger have now sold off over $1.2bn of real estate across 11 assets since 2015, with another $100m on the market, but also invested a similar amount in higher quality assets. The latest sale brings to 4 assets disposed in Brisbane including 72 Queen St, 61 Pietrie Terrace, 52 Albert St and now 30 Makerston. In Melbourne sales included 31 Queen St, 500 Chapen St South and an industrial asset in Laverton whilst in Sydney, Challenger have sold assets in St Leonards. Currently on the market are interests in Vicinity’s Corio Central and Lennox Village Centres. Challenger are trading up by selling older style metropolitan or fringe assets in favour of CBD assets or long WALE leases, with the exception of the North Rocks Shopping Centre which has since undergone a minor expansion. Sentinel has now amassed a portfolio of properties in Brisbane, Darwin, Townsville, Cairns, Newcastle and the north coast NSW regional centre of Port Macquarie worth more than $350m, with the latest acquisition it’s largest. The transaction was brokered by JLL. Location Plan: #Commercial #Challenger #Sentinel
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