The slowing of commercial markets is evident with just $253M of assets changing hands in 6 deals this week. Two of the major deals with week were in the suburb of Tarneit, on the western fringe of Melbourne. In the first of these transactions, Central Equity announced their acquisition of a further 79 hectares of land adjacent to their current holding of 105 hectares acquired in early 2016. This years deal was struck at a rate of $1.0M per hectare compared to last years price of $930k per hectare. The second transaction in Dohertys Rd was at a slightly higher rate of $1.13M per hectare with Growland finalising the purchase of 62 hectares. Growland follows other chinese based development groups who have diversified from their initial strategy of CBD apartments to house & land sales. Some of these groups will be speculative whilst others will proceed with developments. The more astute investors in this region were the ones who entered the market in 2010 and worked through the PSP and development permit process. Stockland was one such group who acquired a large holding of 235 hectares on 5 year terms at an average rate of $325k per hectare. Another was Amex Corporation, a Perth based developer also stepped in several years ago to take control of what is now the subject of the Growland parcel. Logos Property were also in the news again this week acquiring a further industrial asset in Altona North for $27.3M. Scroll through the list below or head to Propel for further details.
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