Weekly Transaction Update – 3rd February

For Week ending 3rd February 2017 A big end to the week with several large transactions pushing the week’s total to over $1.0B. January’s total of $1.2B came in well short of January last years’ total transaction volume of $2.8B. The largest deal this week was for one of Canberra’s largest buildings, the 40,000sqm Marcus Clark Street Building occupied by the Dept of Education and Workplace Training. The asset has a remaining 8 year left of the lease and was transacted at $300M, reflecting a yield of 5.75% and a rate per metre of $7,500. The asset was sold by CIMB who previously acquired it in 2012 for $226M from Walker Corp. Good timing for CIMB. The Hotel sector also recorded several transactions this week, off the back of an improved tourism outlook for Australia. Notably, CBUS sold the yet to be completed Hotel in their Collins Arch project to Diasho who will install a W Hotel as the operator of the 294 Room Hotel once completed. Also announced this week is Star Entertainments’ JV with Far East and Chow Tai Fok acquisition of the Sheraton Mirage on the Gold Coast for $140M. There are big plans for the Gold Coast spit with ASF also proposed a large scale Casino and Hotel complex and we wonder whether the acquisition by the Star JV is a defensive or offensive move. The Vendor, MiiResorts may have done well having acquired the Sheraton for $62.5M in 2008, traded through the depths of the GFC, spending approx $20M in upgrade works and now selling out. Also worth mentioning this week is Romeciti’s acquisition at 82 Waterloo Rd, Macquarie Park from Goodman group. The 1 hectare site is expected to be transformed into 357 apartments in 2 towers. The site sits opposite Macquarie Centre and University and the North West rail link which have jointly provided the key ingredients for a successful residential development market. Romeciti paid $120M for the site ($336,000 per apartment) which is a very hefty price. Sub regional and neighbourhood shopping centres continue to be well sought after with 2 deals this week in Queensland both at about 6% yields. Scoll through the list below or head to the Australian Property Transaction Data Map for further details. This Weeks deals