This week we recorded 10 major transactions for a total value of just under $763M. The largest deal announced this week was the sale of a 25% interest in Lend Leases’ Retirement Village business to APG Asset Management for $425M. The deal, which was in line with Lend Leases’ book value covers some 12,600 retirement units across 71 villages and equates to approx $135,000 per unit. According to Lend Leases’ annual report, the valuation of the income stream adopts a 13% discount rate on the long term cash flow. The cash flow from the assets is predominantly in deferred management fees payable by residents when they leave the villages. In 2017 Lend Lease had 939 resident departures, down 10% on the previous year. Also this week we saw 4 retail assets sold for a total of $152M with 1 in NSW and 3 in QLD. Neighbourhood Centres have been extremely popular amongst investors with 49 assets sold so far in 2017 (up 50% on 2016) with a combined value of $1.4B and an average yield of 6.4%. This weeks acquisitions were led by QIC’s acquisition of Bathurst City Shopping Centre for $70M on a yield of 6.5%, a private investors acqusition of Peregian Springs Shopping Centre for $41.5M on a yield of 5.6% and SCA’s purchase of Sugarworld Shopping Centre for $24.7M with a 6.8% yield. Sydney’s famous Republic Hotel (where many property deal’s were birthed) was also sold this week for $35M. There were a number of other deals this week. Scroll through the list below or head to Propel for further details. * indicates unconfirmed price
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