Weekly Transaction Update – 15th December

16 December 2017

Activity is slowing down in the lead up to Christmas (excluding Westfield of course) with $451m of transactions across 9 different deals recorded across the market. The largest deal this week was the acquisition by Fortius Funds Management of the Home HQ Bulky Goods Centre in Artarmon, NSW, for $140M. The Centre is fully leased and the sale represents a yield of 6.5%. The Centre which was original developed by Charter Hall was a conversion of an older style industrial warehouse and contains 22,196sqm of NLA and 502 cars spaces. Blackstone acquired the Centre off Charter Hall in 2013 for $72.5M, effectively doubling their capital in a little over 4 years. Also this week, 45 St Georges Terrace in Perth was sold by Credit Suisse to Straits Trading Company for $54.2M. Credit Suisse acquired the asset in 2012 for $55.3M and $8M on new air conditioning and end of trip facilities and tenant leasing incentives but despite hopes of securing a sale in the mid $60M range, the sale to Straits Trading Company at $54.2M was the best they could do. The sale price represents $5,415/sqm of NLA and a 10.1% yield based on the fully let income of $5.49M. The 10,010sqm 11-storey office tower, formerly known as the Reserve Bank Building has nine floors of office, two other levels for equipment and parking for 36 cars. The building is 75 per cent leased with a 4.6yr WALE. It is tenanted by Caffissimo, CITIC Pacific Mining, Crowe Horwath, CWS Lawyers, Fletcher Law, MJ McCusker QC, Mortgage Settlements Australia, Sentinel Stockbroking and co-working and social enterprise incubator Spacecubed, among others. Scroll through the list below or head to RE-Intel for further details. * indicates unconfirmed price #Blackstone #Fortius #CreditSuisse