Deals of the Week: 1 June 2018

Deals of the Week: 1 June 2018

Sydney: Sydney-based Aqualand Property has offloaded its 14-storey office block at 54 Miller Street, North Sydney, to US-based real estate investment management company AEW for $59.4 million. AEW acquired the property on behalf of AEW Value Investors Asia III, the third in AEW’s series of value-added funds focused on property investments in Asia’s gateway cities. The B-grade, 1970s office block achieves around a 5 per cent net initial yield with weighted average lease expiries of 1.7 years.—The Urban Developer.

Sydney: A private Macau-based player is the latest investor into Sydney’s booming office market, taking over the Markham-owned building on Elizabeth Street for $265 million. The deal for 179 Elizabeth Street comfortably exceeds initial expectations for a sale price of at least $250 million, testament to the ongoing appetite for Sydney’s commercial property. The passing yield on the deal was 5.17 per cent, with a sales rate of $16,041 per square metre after three rounds of bidding.—AFR.

Melbourne: A Melbourne laneway has been snapped up for about $600,000, amid intense interest from more than 100 potential buyers. The future of the obscure, unnamed lane, which runs off another laneway between Little Bourke and Lonsdale Streets, remains a mystery. The price includes the honour of choosing a title for the small strip, which had been owned by the prominent Melbourne Lechte family for the past 70 years.—realestate.com.au.

Melbourne: A building in the heart Melbourne’s bustling Chinatown has sold for $6.3 million, delivering a staggering 237% lift in value in just five years. The price is a considerable jump from the $2.65 million the previous owner paid in 2013 and comes amid a flurry of sales in Melbourne’s CBD. During the competitive auction earlier this month seven bidders vied for the site at 11 Heffernan Lane, before it was snapped up by a local buyer.—realcommercial.com.au.

Melbourne: Singaporean investors have sold a Woolworths-anchored mall in Melbourne’s south-eastern suburbs to the supermarket giant for $41 million, more than four times what they paid for it 25 years ago. The deal to sell the Mordialloc Plaza to Woolworths was struck on a yield of just 4.4 per cent, compared with the 10.3 per cent yield when the Chen family bought it for $10.15 million in 1993.—AFR.