Deals of the Week: 6 March 2020

Deals of the Week: 6 March 2020

NATIONAL: Property giant Lendlease will manage a $1.6 billion slice of State Super’s direct property portfolio, after NSW’s Treasury Corporation (TCorp) dropped ASX-listed heavyweight Dexus from a 15-year mandate looking after the fund. TCorp, which gives finance and investment advice to NSW’s public sector, chose Lendlease to steer the diversified $1.6 billion property portfolio after running a tender process for the management rights.—SMH.

MELBOURNE: An 8,600sq m office development in Collingwood has changed hands, signalling a major off-market play, with Australian funds manager RF CorVal picking up the unfinished project for $75.5 million from Aus Finance Group. The sale, of 71 Gipps Street in Melbourne’s emerging office hub was negotiated directly between the parties, and follows a large leasing pre-commitment to IWG for 40 per cent of the building.—TUD.

BRISBANE: Consolidated Properties Group and CVS Lane Capital Partners has made their biggest retail acquisition to date, buying the Great Western Super Centre in Brisbane for $84.5 million. The centre has pumped the pair’s retail portfolio up to $485 million, including seven shopping hubs complete, under renovation or in the pipeline throughout south-east Queensland.—TUD.

CHATSWOOD: Cromwell Property has sold a 50 per cent stake in the office block at 475 Victoria Avenue, Chatswood, for $120 million to a private fund managed by BlackRock. The two will work on expansion plans for the building. Located in the heart of the Chatswood precinct, the property comprises two 13-level office buildings, ground floor retail and three levels of basement parking.—SMH.

NSW/QUEENSLAND: Melbourne-based developer Pelligra Group has splashed out about $70 million to buy two regional distribution centres in NSW and Queensland that Coles and Woolworths will vacate over the next few years. Based on current net income of $16.05 million, the deals were struck on yields in excess of 20 per cent, a reflection of the short-term nature of the existing leases.—AFR.

MELBOURNE: Charter Hall has set a new benchmark for Bunnings retail warehouses after acquiring a brand new 16,000sq m outlet in Melbourne’s south east on a yield of 4.5 per cent. The funds management giant paid $42.3 million for the freestanding Bunnings on Berwick-Cranbourne Road, Clyde North which opened in September 2019.—AFR.