The team at Narrowboat appreciate that commercial real estate (CRE) is not a market which interests everyone, mainly because not everyone can readily invest in it (unlike shares, houses or your own startup which make up the majority of our content).
Additionally, as anyone who works in that sector would know, a lot of the action happens before headlines are made.
Nonetheless - here are some interesting headlines we saw this week
International markets
Globally the deal flow is so large that it is best to defer to the news aggregators. Here are some articles which relate to Australia or Australia-focused capital partners
Macquarie backed Axicom has pulled out of Singtel towers auction
Dalian Wanda is targeting a $30bn valuation in an IPO. PAG is working on closing a c.$3bn pre-IPO funding round with investment from Tencent Holdings, Wurburg Pincus and Trustar Capital (PE arm of Citic Capital).
InfraRed UK, separate from the Sydney team, has been acquired by ARA
Finally, whilst over a week old, it is hard to not include the $2.2bn sale of KKR industrial portfolio to Oxford property
This infill acquisition is aimed to compliment the IDI Logistics portfolio acquired from Ivanhoé Cambridge for $3.5bn in Jan'19
Aussie Offices
Fortis lodges plans for $65 million South Melbourne project: 18 levels of premium office to be built off a 300sqm site they own. Pallas, the primary funder of Fortis, who are ripe for raising a new fund, also shared in this headline noting they have GDV of $1bn of pipeline coming from Melbourne
Aussie Sheds
Dexus acquired/agreed to acquire a portfolio of assets from McPhee Logistics, with the a potential deal value of $600m.
The first completed properties comprise more than 70,000sqm which have been acquired for $186m (6.7 year WALE; yield of c.4%). These properties included 2 Maker Place, Truganina Victoria (with expansion land), 116-130 Gilmore Road, Berrinba, 1-21 McPhee Drive, Berrinba & adjoining land
This deal also includes a $125 million deal at Kemps Creek in Sydney (30ha/155,000 anticipated GLA)
Finally – it also includes a pre-commitment from McPhee across 72,000sqm at 113-153 Aldington Road, Kemps Creek
Other random shed headlines
The accountants that wound-up Ansett (KordaMentha) doubled their money in 2 years on Laverton North coldstore sale to Mapletree
Toplace sells 7.6ha for $140m to undisclosed party after buying it off GPT for $65m in 2015. This headline should be taken with a "grain of salt" because the acquirers name is withheld and the deal metrics are umm.... 3.6% yield,$2,164/sqm site area
Aussie Build-to-Rent (aka Build-to-Sell-Later)
Mirvac started on its 538-unit BTR development in Newstead: This dual-tower project (LIV Anura - $270m and Quay Waterfront - $180m) will complete in 2024
They will offer 395 apartments exclusively for renters, including 25 per cent for key workers, across the 23 level and 25 level buildings.
Lendlease, Greystar, Australian Unity and Make Ventures have all been shortlisted for a second Build-to-Rent development with Qld government
Hines paid A$16.5mfor the 4,247 square metre site in Brunswick where it plans to develop a 250-unit apartment complex with an end value of A$250 million.
Other random headlines
Also, whilst not real BTR, Gold Coast development has made a fair few headlines with
Gurner and Wingate are building 4 towers in Surfers Paradis following their 2019 purchase of a block of land from Ranlan
Max Beck is developing 170 units in Coolangatta (a smaller deal than the Gurner one announced)
Retail
Stockland sold Bundaberg shopping center to MA Financial Group in a $140m deal. This was a 3% premium to book and 6.75% cap rate
Elanor sold Moranbah Fair to Sentinel (aka the Property Whisperer) for $28m (8.5%) yield. Reportedly Sentinel were in DD since April 2021
Comments