Deals of the Week: 17 January 2020

Deals of the Week: 17 January 2020

BRISBANE: Lendlease has offloaded its co-owned office tower in the heart of Brisbane’s CBD to German investment firm Deka Immobilien Investments for $380 million. The offer on the A-grade asset at 66 Eagle St was $10m above market expectations. Equal co-owners Lendlease’s Australian Prime Property Fund (APPF) Commercial and Middle Eastern sovereign fund Abu Dhabi Investment Authority (ADIA) listed the tower in September.—The Australian.

PERTH: Warrington Capital has sold a four-level office building in West Perth to newly listed fund manager Primewest for $33.1 million, after spending more than two years and $6.5 million to refurbish the property.—AFR.

PORT MACQUARIE: Perth-based Ascot Capital has joined the rush of private fund managers chasing higher-yielding commercial property returns on offer in regional hubs after paying $37.9 million for a Port Macquarie office building. The deal for the recently upgraded office building at 8 Buller Street was struck on a yield of 6.5 per cent. The 6214sq m building is fully leased to NSW government funded utility Essential Energy on a 15 year agreement.—AFR.

SYDNEY: Coronation Property has purchased a 12,418 square metre site in Sydney’s Merrylands on which the developer plans to develop its first build-to-rent project, saying the market was increasingly willing to accept such a housing type. Privately owned Coronation, which has long been eyeing the new asset class – it last year hosted the Australian visit of a British build-to-rent pioneer – paid listed developer Stockland $41 million for the site, which has a permit for 562 residential apartments, 4500sq m of ground-floor retail and basement parking.—AFR.

UNITED STATES: QSuper has moved further into the property market in the United States, purchasing an office complex in Washington and apartment building in Virginia worth a combined value of $1 billion. The acquisitions bring QSuper’s global real estate holdings to $5.4 billion, or a little over 7 per cent of the fund.—AFR.

ROCKHAMPTON: Acquisitive real estate fund manager MPG has lifted the value of its regionally focused portfolio to over $700 million after buying the Bunnings Centre in Rockhampton from Charter Hall for $43.5 million. The 18,319sq m large-format retail complex includes a 13,242sq m Bunnings warehouse and four additional tenancies at 540 Yaamba Road. It sold on a yield of 5.9 per cent.—AFR.