Weekly Transaction Update – 4th August

5 August 2017

This week we recorded an impressive 24 deals worth in excess of $1.9Billion due to several significant transactions. ​​ The largest single deal was the acquisition by GPT’s Wholesale Shopping Centre Fund of the 25% interest in Highpoint Shopping Centre for $680M. The Centre is the 4th largest in the country with over 156,000 square metres in net lettable area containing over 500 specialty stores. GPT held the balance of ownership of the Centre and with a pre-emptive right over the 25% held by the Besen Family, they were likely to be the ultimate buyer. GPT nudged out ISPT to pay 10% over the book value on a yield of 4.2%. The Besen family have certainly picked a good time to sell with major retailers in malls facing increasing pressures from on line retailers. The second major deal this week was the sale of the SA Motor Accidents Commissions property portfolio. The portfolio has been on the market for 6 months or longer and has now been sold to 3 parties. Charter Hall picked up 990 LaTrobe Street for $114.5M on a 5.1% yield; Goodman group acquired the Talavera Rd asset for an estimated $28M and Blackstone acquired the 9 assets in balance of the portfolio for circa $550M. Full details are yet to be disclosed. In another transaction Goodman disposed of an asset in Khartoum Rd, Macquarie Park for $95.3M having recently completed construction of the 12,000sqm building and pre-leased it to Fuji Xerox until 2027. Also in Macquarie Park, 55 individual owners of apartments bundled their property together and sold them collectively for $80M for development into approx 270 apartments. Also this week came confirmation that Fort Street Real Estate had sold 390 St Kilda Rd to Rockworth Capital Partners for $90M. The property was acquired by the vendor in February 2014 from Charter Hall for $56M on a passing yield of 7.5%. With a sale this week at $90M, the, the vendor is likely to have enjoyed an ungeared IRR of 6.2% and a geared IRR of circa 14% before fees. Prior to Fort Street’s acquisition in 2014, the property was previously traded in 2007 for $63M and prior to that for $45M in 2003. There were a number of other deals this week. Scroll through the list below or head to Propel for further details. * indicates unconfirmed price