Deals of the week – 27 September 2021

National

INDUSTRIAL / INFRASTRUCTURE INVESTMENTS - $1.5 billion

A suite of investment assets across New South Wales, Victoria and Western Australia have been scooped up by a partnership between Dexus and APN Industria REIT (ADI) in a deal totalling $1.4935 billion.

In New South Wales, the deal includes a 42,500sqm logistics facility at Lot 2, 884-928 Mamre Road in Kemps Creek ($124.5 million). In Victoria, the partnership has secured a 30,000sqm warehouse leased to Australia Post at 2 Maker Place, Truganina ($69 million). 

In WA the deal includes Perth’s Jandakot Airport ($200 million), 49 leased warehouses that surround the airport ($875 million) in addition to 80 hectares of undeveloped land ($225 million).

INDUSTRIAL PORTFOLIO - $430 million

Lendlease in a 50/50 joint venture partnership with an investment vehicle supported by Morgan Stanley Real Estate Investing, has acquired a portfolio of eight assets from a private logistics group.

The assets comprise five leased industrial facilities and three development sites, with a developed value of approx. $430 million. EMKC will assume development management and its APAC business the property and facilities management for the sites. 

Included in the deal is GAM Steel’s new 58,000sqm distribution centre located next to the West Gate Freeway, in Melbourne’s Altona North. The other warehouses are located in Sydney’s Glendenning (two warehouses), Brisbane’s Richlands and Adelaide’s Salisbury South.

The three industrial land development sites are found in Melbourne’s Altona North and Truganina as well as Lytton near Brisbane’s airport.  

CBRE’s Chris O’Brien and Rory Hilton brokered the deal.

INDUSTRIAL ASSET PORTFOLIO – $351.5 million

Another substantial industrial asset portfolio recently transacted, involving eight fully-leased warehouses which were collected by Centuria for $351.5 million.

The deal includes two NSW assets, including; 56-88 Lisbon Street, Fairfield East, leased to DB Schenker and Fantastic Furniture ($200.2 million); 164-166 Newton Road, Wetherill Park, ($36.8 million). 

Additionally, the portfolio is comprised of one asset in WA; 48-54 Kewdale Road, Welshpool, ($35.1 million). Two in QLD; 51 Depot Street, Banyo, ($20.3 million); 31 Gravel Pit Road, Darra, ($19 million) plus three in VIC; 51-65 Wharf Road, Port Melbourne, ($22 million); 346 Boundary Road, Derrimut, ($11.9 million) and 31-35 Hallam Road South, Hallam ($6.2 million).  

HEALTHCARE PORTFOLIO - $167 million

Centuria have recently added seven fully leased investments to its Healthcare Property Fund (CHPF) in a deal worth just over $167 million. These purchases bring the total number of assets within their portfolio to 14.

The deal includes QLD’s Weststate Private Hospital in Townsville ($60.5 million); WA’s ‘Perth Clinic’, at 21-29 Havelock Street in Perth ($50.1 million); VIC’s Sunbury Medical Centre in Melbourne’s north west ($28.6 million), a mental health outpatient centre at 411 Nepean Road in Frankston ($12 million); NSW’s MetroRehab Hospital in Petersham ($8.45 million), plus two dementia care units in Sydney’s Castle Hill (each being $3.7 million).

New South Wales

CLYDE - $140 million

A Clyde industrial holding has traded from Toplace to the Goodman Australia Industrial Partnership for $140 million. 

The asset includes three neighbouring sites at 15, 17 and 19 Berry Street and was originally purchased by the vendor in 2015 for $64 million 

The property encompasses a total landholding of 7.6 hectares and contains 29,600sqm of warehousing, most of which is leased with approximately 6,000sqm vacant.

NEWCASTLE - $7.82 million

A Newcastle industrial investment with development upside has recently been scooped up by EG for $7.82 million 

Located around 17km south-west of the Newcastle CBD at 5 Walker Street in Warners Bay, the 1.14-hectare property holds 4,233sqm of improvements and is occupied by 14 tenants (WALE of 1.8 years), returning an annual total income of $436,839.

Colliers’ Tim Woolf and Luke Rutledge brokered the deal. 

Victoria

ROXBURGH PARK - $27.7 million

Woolworths Greenvale Lakes, a newly built shopping centre in Roxburgh Park, has traded from Woolworths to a local investor for $27.7 million.

Located at 200-230 James Mirams Drive, the 1.42-hectare landholding offers 3,403sqm of NLA as well 185 car parks. Woolworths will stay on with a new 10-year lease. They are joined by Terry White Chemist and Zet & Zaatar Bakery.

Stonebridge Property Group’s Justin Dowers, Kevin Tong and Philip Gartland managed the deal. 

CRANBOURNE EAST – ~$3 million

A two-storey medical centre in Cranbourne East has transactions for just under $3 million.

Located at 14 Board Oak Drive, the asset came with 14 onsite car parks and a permit for four full time practitioners. The property features a GP, dental, pathology and allied health services which all cater to a substantial community catchment. 

CBRE’s Australian Healthcare & Social Infrastructure team of Marcello Caspani-Muto, Sandro Peluso and Jimmy Tat managed the deal.

ASHBURTON - $1.035 million

A Melbourne investor has secured a retail strip property leased to the Salvation Army at Ashburton, in an off-market deal worth $1.035 million. 

Situated on a 232sqm site, the 110sqm, 401 High Street premises sold subject to a five-year lease currently returning $18,000 per annum net with 3 per cent annual increases.  

Teska Carson’s George Takis managed the deal.

Queensland

MILTON - $10.12 million

Three prominent retail investments in the established lifestyle, cultural and entertainment precinct of Milton have sold via auction for a combined $10.12 million to separate private investors from Sydney and Melbourne.

The 55 Railway Terrace investments are located beneath The Milton Residences and integrated with the Milton Train Station and had long leases to national retailers including Australia Post, BWS and Ribs & Rumps.

The 205sqm Australia Post investment sold for $3.15 million reflecting a yield of 4.90%, secured by a long 10-year lease. The BWS offering transacted for $2.15 million reflecting a 4.85% yield, secured on a five-year lease. In the largest of the three transactions, the 434sqm Ribs & Rumps investment transacted for $4.82 million representing a price of $11,106 per/sqm and a yield of 6.8%.

CBRE’s Josh Scapolan and Sebastian Fahey managed the deals.

TUGUN - $6.9 million

The Tugun Beach IGA sold under the hammer for $6.9 million with a 3.94% yield, setting a new benchmark for IGA’s in Queensland.

The freestanding IGA supermarket was underpinned by a brand new 15-year lease, with a compound pharmacy on a one-year lease plus two ATMs. The asset had a WALE of 12.89 years and is located on a 1,279sqm land parcel with code accessible zoning up to three storeys.

Ray White Commercial’s Lachlan O’Keeffe and Michael Feltoe managed the auction.

Western Australia

PERTH - $52 million

Buckeridge Group of Companies have divested from 17 Perth apartment blocks, with Aspen Capital securing the assets in a deal worth $52 million.

The transaction encompasses 514 dwellings mainly comprised of one or two bedrooms. Aspen have announced that they plan to refurbish the apartments where required and hold the vast majority as rental stock. In total the company expects to spend about $25 million across the portfolio over the next 18-24 months.

South Australia

ADELAIDE - $71.5 million

The Commonwealth Bank building in Adelaide’s CBD has traded from ex-Video Ezy chairman Bob Maidment to Quintessential Equity for $71.5 million.  

The building last transacted in 2008, when Mr Maidment paid out Quintessential Equity and investor Stan Waldren for their stakes. The trio purchased the building together a few years prior for $65.5 million.

Located at 100 King William Street, the site was developed in 1983 and presents a total of 18,555 sqm over 17 floors. 

Colliers’ Paul van Reesema and Alistair Mackie managed the deal with CBRE’s Ian Thomas and Alistair Laycock.