Weekly Transaction Update – 7th April

10 April 2017

A solid $565M of transactions took place this week. The largest deal of the week involved the investment by Malaysia’s Employees Provident Fund of $154 million into a large development project in Melbourne. The project to be known as Melbourne Square includes four apartment towers, an office tower, a retail mall and a hotel and serviced apartment building. EPF have acquired a 49% interest in the project from developer OSK. OSK reportedly acquired the site in 2014 for $133M. It is unclear how much of the EPF investment will go toward future costs as opposed to a share in the existing land. Also this week, Mirvac announced the purchase of 77ha of land in Craigieburn for $75.0M reflecting the typical rate per metre of $970,000 / hectare being achieved for urban land in Melbourne at present. The site has capacity for 950 lots resulting in a price per lot of $78,950. Like most land acquisition terms, the price is spread over a 5 1/2 year term. A number of commercial property deals in Brisbane were completed this week including 40 Tank Street Brisbane and 545 Queens Street Brisbane and 1231 Sandgate Rd, Nundal. The Tank Street sale was for an 11 storey office and car park building owned by Blackstone and now sold to Ariadne and Kevin Seymour. The car park is operated by Secure parking, a business which Ariadne and Secure sold late last year to Japan’s Park24. It appears that Ariadne held a lease on the car park and now along with it’s deputy chairman, Kevin Seymour has acquired the freehold title of the property. 545 Queen Street Brisbane, once home to Flight Centre, changed hands this week for $72.0M. Flight Centre recently relocated to South Bank leaving this asset largely vacant. Vendor, GPT originally transacted the sale of the asset for $82m to a chinese back group who proposed a 76 storey residential development which would have delivered 891 luxury residences, 100 serviced apartments, approximately 2,500m2 retail and commercial podium and basement parking for 853 cars. The chinese group didn’t complete the transaction and GPT have now sold the asset to Asix Capital. 1231 Sandgate Rd Nundal was acquired by Centuria this week from Growthpoint Properties at a price of $106M on a yield of 6.9%. The property is fully leased to tenants such as Energex and Powerlink with a weighted average lease expire of 9.3 years. Centuria is currently raising $68M to fund the purchase via a retail offer offering investors a 7.0% distribution yield from year 2 based on a gearing of 45%. Scroll through the list below or head to Propel for further details.