Deals of the week: 23 June 2017

Deals of the week: 23 June 2017

23 June 2017

SYDNEY: Dexus has bolstered its stranglehold as the biggest office landlord in the country following a $1.1 billion buying spree that includes the Harry Seidler-designed MLC Centre, Australia Square and Grosvenor Square, and the Gateway Building at Circular Quay. Once the MLC Centre sale is completed, Dexus will own the lion’s share of Martin Place and have replenished its office space after its 39 Martin Place asset was bought by the NSW government to make way for a new Sydney Metro station.—The Sydney Morning Herald.

SYDNEY: Dexus has also agreed to acquire the landmark Teplitsky building in Sydney’s Pyrmont for $327.5 million, the largest office transaction in the suburb’s history. Originally a wool store from the 1890s, the refurbished heritage property comprises 26,879 sqm of A-Grade office space over six levels. Dexus agreed a 100 percent freehold stake in 100 Harris Street at a fully leased yield of 5.4 per cent. Among its tenants are co-working platform WeWork and Fairfax’s Domain.—Property Observer.

SYDNEY: Chinese building materials and homewares company China Lesso Group Holdings opened a 30,000sqm centre in Greenacre, Sydney. The company is reportedly investing at least $20 million, with more than 60 tenants, focusing on trade buyers including home builders and interior designers. The group is planning to open another outlet in Australia in early 2018, focused on lighting and furnishings, and has plans for other home building offerings in the future.—

MELBOURNE: Probuild and ISPT have broken ground at 271 Spring Street on a $150 million mixed-use tower in Melbourne’s CBD. The tower will become the new headquarters for national health, wealth and living company Australian Unity. The John Wardle designed heritage-facade 16-level tower will include 15,600 square metres of commercial space. Australian Unity has agreed to a 15-year term over the entire 15,600 square metres of the 16 level office building.—The Urban Developer.

MELBOURNE: Swiss pension fund operator AFIAA is set to purchase a $180 million, 15-story building at 628 Bourke Street, Melbourne, with a projected yield of less than 6 per cent. Meanwhile, two Singapore-based funds giants, Prime Asia and ARA Asset Management (most likely via Suntec REIT), have pounced on separate towers in Collins Street.—AFR.

BRISBANE: Aviator Capital has made its first foray into the Brisbane market with the purchase of an Ashgrove commercial complex for $33.5 million – the company’s largest property acquisition to date. The 240 Waterworks Road property comprises a mix of commercial and medical tenancies, including a 45% representation of ASX-listed tenants and 69% representation of medical occupiers.—The Urban Developer.

BRISBANE: Seniors living operator Ingenia Durack has nabbed Durack Gardens, a 9.5-hectare Brisbane metro lifestyle property, for $25 million. The purchase in the tightly held Brisbane market, is expected to settle later this month. The company says the property will significantly enhance its returns as it adds 253 income producing sites to the key Queensland cluster.—The Australian.

GLADSTONE: Newly floated Elanor Retail Property Fund has swooped on the Gladstone Square shopping centre in Queensland for $31.5 million as vendor Charter Hall Retail REIT focuses its portfolio on larger malls. The mall of almost 7000 square metres is anchored by a refurbished and expanded Woolworths supermarket on a new 20-year lease.—AFR.