Weekly Transaction Update – 26th October 2018

28 October 2018

This week we recorded 18 major transactions worth $293M Mapletree secures Coles Distribution Facility in Heathwood The Singapore-listed Mapletree Logistics Trust looks to have secured the Coles Distribution Centre in Heathwood QLD in a deal worth approx $102M. The Heathwood distribution centre occupies 55,739sqm and sits on a 15.1ha parcel of land with multiple street frontages and good access to the Logan Motorway. The centre spins off a rent of $6.12 million with fixed 3% increases and the lease was recently extended for five years until January 2023. The listed Mapletree fund has nine assets along the eastern seaboard which include four warehouses in Sydney it acquired from private equity group Altis Property Partners for $85 million and a portfolio of properties in Victoria it acquired from Growthpoint for $142.2 million. Mapletree also picked up the Coles Chilled Distribution Centre in Eastern Creek in 2015 from Goodman for $253M at what at the time (and still is) a very sharp yield of 5.6%. Dexus prepares 140 George St Back in June 2018, Dexus announced that it had settled on the sale of the trading opportunity at 140 George Street, Parramatta to the Dexus Office Partnership. Though Dexus did not reveal the price, the transaction now registered at the titles office, reveals that the site was sold for $25.0M. The site forms part of Dexus larger land holdings spanning 130 – 150 George Street. Part of the site which also backs onto Philip Street was recently developed into a 25,000sqm office tower and sold to Charter Hall for $229M on a 5.3% yield. The development of 140 George Street was approved in May 2018 and will consist of an A-Grade office building with 45,700 square metres of office space. On completion, the site could be worth up to $420M. Dexus are yet to secure any tenant pre-commitments. Sentinel takes on $23M Bunnings at Heatherbrae The former Masters site at Heatherbrae has changed hands again, just 12 months after the Home Consortium sold the site to a local investment group, Heatherbrae Investment Holdings Pty Ltd. HIH picked up the asset in October 2017 for $12.3M, finalised the Bunnings conversion and leased several of the vacancies to BCF, PetStock and others. This week Senitnel announced the acquisition of the centre for $23.3M, a 90% uplift in 12 months. The complex has a weighted average lease expiry (WALE) of 3.65 years and a passing income of approximately $1,849,534 per annum, generating a 7.94% yield. The facility will be the third addition to the Sentinel Homemaker Trust, which also includes City West Plaza at Sunshine in Victoria and the Geraldton Homemaker Centre in Western Australia. Other Sales Scroll through the list below or head to ReSourceData for further details. * indicates unconfirmed price or apportionment of a portfolio sale #ReDataSource