Weekly Transaction Update – 24th March24 March 2017
Another relatively soft week in property markets with only $276M of major property transactions changing hands. The deals include two industrial investments acquired by Logos Property for $23M which takes their investment in Australian industrial property over the past 18 months to $600M. Ivanhoe-Cambridge’s $200M investment into Logo’s earlier this year has provided the group with further capital to invest to continue the supply of industrial product for its business. The acquisition of the two properties this week attests to this strategy. Both acquisitions are for vacant land, one with a pre-commitment and will allow Logos to speculatively build 10,000 – 20,000 sqm facilities. Whether Logos will roll the completed assets into a new vehicle or hold them on balance sheet remains to be seen. The other major deal this week from Stockland also points to their expanded business model which involves developing apartments and townhouses. The Braybrook acquisition of 11.5 hectares for $62M carries with a permit for 422 townhouses ($147,000 per dwelling). With construction costs likely to average in excess of $350,000 per dwelling Stockland will be seeking to average $630,000 per dwelling to maintain a 16% development margin. With existing townhouse stock in Braybrook selling at circa $560,000, Stockland are relying on market growth (and or additional site capacity) to deliver investment returns on this project. Scroll through the list below or head to Propel for further details.