Deals of the Week: 23 August 2019

Deals of the Week: 23 August 2019

NATIONAL: Canadian investment fund giant Brookfield will have a clear run at Aveo Group after the struggling retirement village operator’s board unanimously backed a buyout plan that values it at $1.27 billion. Security holders in Aveo will decide in October if they accept the offer, with the deal expected to be done this calendar year. The agreed price is $2.195 per security.—SMH.

SYDNEY: Frasers Property has wrapped up a five-year lease on an industrial property that it developed speculatively in Sydney’s outer west, amid a downturn in the supply of speculative projects in the area that may last into 2021. Annual net rent is just under $2 million for the property, which has an estimated end value of $45 million.—AFR.

SYDNEY: Singaporean sovereign wealth fund GIC has acquired a stake of just over one quarter in two massive Lendlease-developed towers in the Barangaroo South harbourside office precinct that are worth about $4.6 billion in total. The move is one of the largest direct property purchases of this cycle and comes in the wake of a series of mega deals in the office market in which buyers including US private equity group Blackstone and Charter Hall have secured premium towers. Blackstone picked up the trio of towers above and around Westfield Sydney in a $1.52bn transaction and Charter Hall took a half stake in the $1.8bn Chifley Tower and Plaza, and has ambitions to overhaul that precinct.—The Australian.

ALBURY: A North Albury neighbourhood centre, anchored by a Coles Supermarket and Liquorland outlet, has changed hands for $16.5 million on a tight yield – for a regional mall – of 6.2 per cent. The 3949 square metre North Albury Shopping Centre s acquired by a NSW private investor.—AFR.

NORTHERN TERRITORY: A landmark shopping centre in the town of Katherine, Northern Territory, has transacted to a private Melbourne investor for $28.9 million. Achieving a core cap rate of 7.43%, Katherine Central Shopping Centre was sold by Ben Parkinson and Rick Silberman of Savills. Katherine Central is anchored by a Woolworths supermarket and Target Country, with a diverse tenancy mix including BWS, Rockmans, Smokemart, Amcal, and Brumby’s.—Savills.

REDBANK: NSW publican Gerry Murphy has snapped up the Commercial Hotel in the Ipswich suburb of Redbank in Queensland, with plans to renovate the property. The 2702 sq m site at 72 Brisbane Road, which encompasses a sports bar, TAB area, bistro, walk-in bottle shop, office and guest rooms, is understood to have sold for about $6 million.—AFR.

SYDNEY: Stockland has confirmed its much-anticipated acquisition of the remaining 50 per cent stake in Sydney’s Piccadilly Centre from Oxford Properties for $347 million while exiting its half stake in 135 King Street and Glasshouse nearby for $340 million.—AFR.

BRISBANE: ASX-listed real estate investor and manager Cromwell Property Group has struck a $524.75 million deal to buy A-grade Brisbane tower, 400 George Street. The falling Brisbane office vacancy is one of the motivations for the purchase as the group goes on a shopping spree for the next phase of its investment following its recent $407.5 million capital raising.—AFR.

ADELAIDE: Soilbuild REIT, a Singapore real estate investment trust, has bought 25 Grenfell Street, an A-Grade Adelaide office tower, for $134 million. The deal, struck on a yield of 7.7 per cent, represents the second highest price paid this year for an Adelaide office tower.—AFR.