Deals of the Week: 1 November 2019

Deals of the Week: 1 November 2019

MELBOURNE: The Australian Federal Police will become the sole tenant for a new Charter Hall-developed tower in the Melbourne CBD, taking an initial 30-year lease on the 20-level building. The leasing deal, one of the longest of its kind in the market, locks in long-term income for its landlord at 140 Lonsdale Street and gives the AFP multiple options to renew its tenancy. The leasing deal is likely to have been struck with net face rent per square metre in the mid-$500 range, according to industry sources.—AFR.

NATIONAL: Lifestyle communities and retirement village asset portfolios, worth a combined $134 million, are being offered to investors who want higher-yielding bricks and mortar properties in what is seen as an expanding sector. Hometown Australia Communities is selling about $110 million in eastern seaboard properties, comprising sites in regional tourism/retirement destinations including the Tweed Coast in NSW, the NSW mid-north coast and Lakes Entrance in Victoria.—SMH.

NATIONAL: Shopping mall giant Vicinity Centres, the joint owner of the country’s biggest mall, took advantage of the globally low cost of debt, pricing $500 million ($809 million) worth of medium-term notes in the European market. Vicinity’s move is the latest in a run of major debt raisings by retail landlords.—AFR.

SYDNEY: In the largest gaming hotel deal negotiated in Australia this year, the publicly-listed Redcape Hotel Group has sold the St George Hotel in the western Sydney suburb of Belmore for $47.1 million, to two private hoteliers. Sporting a maximum of 30 poker machines, the gaming-focused St George Hotel is ranked 43 in NSW for its ability to turn a gaming machine net profit.—The Australian.

VICTORIA: Chris Langford’s Newmark Capital has struck a deal to acquire a $51 million new large-format retail centre in Warragul in regional Victoria, anchored by Bunnings and Kmart. The 25,238 square metre centre on a 5.7 hectare corner site on Queen Street and Hazel Drive, of the Princes Highway, is about 107 kilometres south-east of Melbourne.—AFR.

NATIONAL: Yield-hungry investors snapped up all 15 of the 7-Eleven fuel and retail convenience centres on offer as part of a portfolio auction held across Sydney and Melbourne. All were offered by retail billionaire Russell Withers, with some selling on yields under 4 per cent. Total sales amounted to around $70 million with the auction achieving a rare 100 per cent clearance rate. The properties were auctioned by agents Burgess Rawson on Wednesday in Sydney and Melbourne.—AFR.

PERTH: West Australian developer Finbar has purchased a 1697sq m Perth CBD development site for $6.5 million for a future mixed-use development. The property at 240 Adelaide Terrace comprises vacant 62-room hostel-style accommodation and a three-level building at the rear.—AFR.

SYDNEY: In a sign of the times, Stockland sold a suburban mall on Sydney’s lower north shore for $3 million less than it paid for it over 12 years ago, just before the global financial crisis. The diversified property giant, in the midst of a $500 million divestment of non-core retail assets, sold the Cammeray Square centre to syndicator Fortius for $39.05 million on a yield of 7 per cent.AFR.