Weekly Transaction Update – 17th November

18 November 2017

This week we recorded a staggering $1.9bn of transactions across 28 different deals. The largest single deals was AMP Capital’s purchase of 50% of Rockingham Shopping Centre, 45kms south of Perth for $300m. The purchase price represented a yield of circa 5.5% and a rate per metre of $9,600/sqm. Rockingham Shopping Centre is a 62,000sqm Centre containing Coles, Woolworths, Target and KMart plus 190 specialty stores. Vicinity own 50% of the Centre with the Future Fund and CPBIB selling their stake to AMP Capital. The Future Fund & CPBIB have been selling down their retail assets with the sale earlier this year of Grand Plaza in Browns Plains for $215M and Salamanda Bay, near Port Stephens for $174.5M. AMP Capital’s investment program so far this year has seen a total of $1.7bn in net investments (ie Acquisitions less Divestments) with the prospect of more to come with Indooroopilly. Also this week came confirmation of Trust Capital Advisors sale of 5 commercial assets netting them over $730M. The assets traded on yields of approx 5.5% with AEW acquiring 50 Pitt St, AMP Capital buying 469 LaTrobe St for their private client Swiss RE, Australian Unity buy 150 Charlotte St, and a JV between MEC and CLSA buying 850 Collins and 575 Bourke Streets. Despite the strong level of sales this week, the sales for the quarter are well down on previous quarters with $5.2bn of sales made so far. We expect this will rise significantly by year’s end bringing total sales across all markets in 2017 well ahead of 2016. There were a number of other deals this week. Scroll through the list below or head to RE-Intel for further details. * indicates unconfirmed price