TOP 20 DEALS FOR 201
ASX-listed developer Mirvac Group won the race to sign up Suncorp to anchor its premium 31-storey office tower and JLL also closed the deal with UK-based M & Real Estate to buy 50 per cent of the building. The deal was the largest ever forward funded sales transaction in Brisbane and valued the tower at $836 million. The sale reflected an initial yield of 5 per cent.for the building that will be completed in 2022. Suncorp’s lease will make up about 66 per cent of the premium tower’s 61,341sq m space which will boast the CBD’s largest floor plates. Designed by Woods Bagot the building retail amenities on the ground floor. and a 6-Star green star, a 5-Star NABERS energy rating.
CHARTER Hall’s Core Plus Office Fund paid QIC Global Real Estate bought the fully leased office tower. Built in 1985 and anchored by the Queensland Department of Transport and Main Roads, the 28,750sq m 17-level tower on a 3646sq m site recently underwent a $38 million refurbishment. It was sold on a 6 to 6.5 per cent yield and was one of seven buildings in a $562 million State Government portfolio purchased by QIC in 2013. It had an average lease expiry of about 10 years.
US-based multinational investment bank and financial services company JP Morgan Asset Management snapped up Challenger Life’s A-grade 23-level tower in a CBRE-struck deal that realised an initial yield of 6.4 per cent. Formerly the 10-level Kings Parkade parking station another 12 levels of office space (and a plant room on level 23) was added in 2008-09 at the start of the global financial crisis. Occupied by mostly government tenants, it has a net lettable area of 17,737sq m and a total gross floor are of 20,166sq m. Challenger Life had bought the building in 2014 for $209 million from a syndicate operated by accountant Earl Larmar.
IN one of its largest acquisitions Growthpoint Properties Australia bought the four-year-old office building from two Charter Hall funds on a 6.1 per cent yield and was partly funded by $135 million equity raising, with Goldman Sachs. With a net lettable area of 24,665sq m the building in the Gasworks precinct is fully leased to ASX-listed tenants including Bank of Queensland and Collection House, with the first significant lease expiry not until May 2026. CBRE handled the sale
US fund manager Invesco Real Estate snapped up a half-share in the southside shopping centre from Vicinity Retail Partnership which includes the Canada Pension Plan Investment Board and the Future Fund. The deal brokered by JLL realised a 5.5 per cent yield. Vicinity will continue to own its own half stake in the shopping centre, 22km south of the Brisbane CBD. The shopping centre has a gross leasing area of about 51,900sq m and is anchored by Kmart, as well as Target and Big W, three supermarkets, speciality tenancies as well as parking for over 2500 cars.
THE Lendlease managed Australian Prime Property Fund Retail, an existing co-owner of one of Australia’s best performing hybrid outlet centres snapped up a 25 per cent interest in Harbour Town Gold Coast that was owned by Australia’s Future Fund. The deal handled by JLL realised an initial yield of under 5 per cent. The 55,225sq m outlet centre on the Gold Coast has 240 specialty tenancies. While the Lendlease fund now has 50 per cent of the centre the remaining 50 per cent of the centre is owned by the Lewis Land Group.
THE listed Abacus Property Group and US investment manager Heitman bought the nine-level innovative office building in the RNA Showground precinct from Melbourne-based syndicator Impact Investment Group backed by the Liberman family. The deal reflected a 6.1 per cent yield. Developed by Lendlease and sold to Impact in 2015 for $130 million it has 16,600sq m of gross lettable area. K1 is the first of three towers at Lendlease’s Kings Gate commercial precinct at the RNA redevelopment. The building was fully leased with a weighted average lease expiry of more than six years. It is Lendlease’s Queensland headquarters and other tenants include education company Pragmatic Training, electronics payment processing business Ezidebit, telecommunications and electronics company Vita Group and Robert Bird.
ARKADIA Capital Group — controlled by Greg Karedis, son of property baron Theo Karedis — acquired the Large Format Retail centre from Altis Partners. The deal struck by JLL reflected an initial yield of 6.93 per cent. Altis bought the property from GPT Group in 2013 for $103.2 million. The 38,000sq m shopping centre occupies two North and South locations and is on a combined 3ha site. Tenants include Harvey Norman, Freedom, Nick Scali, Aldi, Tesla, T.K Maxx, Guardian Childcare and Goodlife Health Club, in addition to 20 large format retailers, one car wash and two cafes.
9. The Barracks Brisbane CBD, retail/office — $161.3m
FORTIUS Funds Management bought the mixed-use complex from financial services company Challenger. Fortius raised about $85 million of equity for the deal, including a major slice from US funds house Heitman, to back the unlisted Brisbane Barracks Trust it set up to acquire the asset. Challenger Life bought the complex in late 2014 for $143.95 million from the developer Property Solutions and QM Properties. Fortius targeted an average annual distribution of 8 per cent over the term of the trust. The property was sold through CBRE and Colliers International.
SINGAPOREAN firm Firmus Capital bought the 23-level tower from US property giant Blackstone. Firmus was spun out of Rockworth Capital Partners in 2017 and it was the new entity’s first Australian purchase. The 18,302sq m A-grade tower. was sold on an initial yield of 5.5 per cent. It was sold 88.5 per cent occupied with a weighted average lease expiry of 2.6 years. Knight Frank and CBRE struck the deal.
11. 143 Turbot St, Brisbane CBD, office — $110m
CHARTER Hall purchased the 25-storey tower on behalf of the government of Singapore’s sovereign wealth fund GIC. The 20,000sq m building, also at 343 Albert St opposite King George Square, was owned by joint venture owners Amalgamated Property Group and Morris Property Group. Major tenants were the Department of Human Services and Canstar. the site also has approval for a 50,000sq m premium office tower. It was sold on a yield of around 6.75 per cent. CBRE handle the sale.
SINGAPOREAN-listed Mapletree Logistics snapped up the Coles-tenanted distribution centre from Blackstone. The 55,739sq m complex sits on a 15ha site with further land for development. The lease was recently extended until January 2023. JLL handled the sale and the deal realised a 5.83 per cent.
13. 260 Queen St, Brisbane CBD, office — $95.25m
US funds group Hines, backed by Goldman Sachs bought the tower from Sydney-Hobart sailing veteran Peter Harburg. Currently Westpac’s local headquarters the tower has a net lettable area of around 13,300sq m and offers 1000sq m podium floor plates over 20-storeys. The building has 1000sq m podium floor plates and includes Westpac’s retail banking chambers. The sale reflected a capitalisation rate of 6.68 per cent and an IRR (10 years) of 8.91 per cent. CBRE sold the property
QUEENSLAND property tycoon Kevin Seymour and the ASX-listed Ariadne Australia had a major windfall after selling the office and car park. Two funds controlled by ASX-listed Charter Hall bought the 10-storey property a little over 12 months after Mr Seymour and Ariadne ought it from US private equity giant Blackstone for $56 million. They re-leased it and completed some works. The deal struck by JLL realised an initial yield of 5.84 per cent and a rate of $7525/sq m of office lettable area ($15,747/sq m overall). The building and car park has a net lettable area of 6218sq m and 327 carparking bays. It was sold 100 per cent leased with a WALE of 6.3 years. The office component of the building is occupied by the Queensland Police while there are five levels of carparking mostly leased to Care Park.
ASX-LISTED property giant Dexus parked its money in the prestige car market with the purchase of the Audi Centre Brisbane and The EuroMarque Complex from Lambhill Pty Ltd. CBRE and Cushman & Wakefield handled the sale which realised a tight 5.75 per cent yield.
The state-of-the art property, which houses an array of prestigious brands such as Audi, Lamborghini, Maserati and Bentley. The property comprises two adjoining, purpose-built automotive dealerships known as Lighthouse, constructed in 2011. The Euro Marque building was constructed in 2006. It features 13,288sq m of office and showroom space across two levels and a hardstand and external area of 2556sq m. It is on a 7123sqm site with three street frontages and future development potential of up to 20 levels. A crucial part of the deal was the lease recommitment by the ASX-listed Autosports Group to the end of 2026 plus two five-year options.
MACAU casino boss Loi Keong Kuong’s Galaxy Entertainment Group scooped up Gold Coast shopping centre Soul Boardwalk, at the base of the $850 million Soul tower at Surfers Paradise. The sale of Soul’s retail component caps off Soul’s history of financial difficulty. The Juniper Group, which developed the property, went into receivership after 100 apartments at the tower above failed to settle in 2012. Soul Broadwalk was on the market in 2015 but an offer of about $78 million was rejected by the mortgagees. Last year receiver PwC put it on the market on behalf of banking syndicate believed to have included Morgan Stanley, National Australia Bank and Hong Kong’s Pacific Alliance Group who backed the original development. Soul Boardwalk is 7012sq m of strata retail space across three levels and on The Esplanade, it is in front of the renown Surfers Paradise beach. Tenants include Ripley’s Believe It Or Not, Surf Dive and Ski, Hurricane’s Grill and Vapiano and it was sold on a yield of 7.42 per cent. It was marketed by Colliers International.
QUEENSLAND University of Technology bought the seven-storey A-grade building in the heart of Kevin Grove’s Urban Village from Cromwell Property Group. The building features
ground floor retail, six floors of office space and 217 basement carparks. It has 14,144sq m of net lettable area and is leased to QUT, Boral Resources and three ground floor retail tenants. The sale realised a yield of 7.1 per cent. CBRE and Savills marketed the property. Cromwell acquired the site as a fund through in 2007, with construction completed in late 2008.
SINGAPOREAN-based Rockworth Capital Partners bought the 17-storey office building from an investment partnership managed by Brisbane-based Evolution Private. In the heart of the Golden Triangle and on the corner of Edward and Mary streets, it is on a 1400sq m site and has 7120sq m of office space. It was about 95 per cent leased at the time of the sale. Cushman & Wakefield introduced the parties. Evolution Private — which represented Canegrowers and DDH Graham Limited — bought the building in 2011 for $46 million.
19. Coomera Square, Coomera, retail — $59.7m
WEALTH and asset manager RAM Australia is believed to have bought the northern Gold Coast neighbourhood shopping centre from the listed Charter Hall Direct Retail Fund. The shopping centre has a net lettable area of 9400sq m and sits on 3.33ha. It is anchored by a Woolworths supermarket, also has a Dan Murphy’s, Coomera Tavern and Shell service station, plus 32 specialty stores. JLL struck the deal which realised a yield of above 6 per cent. The Charter Hall fund bought the property in 2014 for $59.2 million.
20. Lutwyche City, Lutwyche, retail — $53m
THE ISPT Retail Australia Property Trust secured a 50 per cent interest in the neighbourhood centre in Brisbane’s inner north from ASX-listed Abacus Property Group. The ISPT managed fund deal was struck through a conditional forward funding arrangement Abacus will retain 50 per cent ownership. At the time of sale the centre was undergoing a large redevelopment to the super convenience format favoured by Abacus. It offered 12,103sq m of gross lettable area, with post refurbishment figures expected to be around the 22,100sq m mark with the inclusion of Woolworths, Coles and Aldi. JLL struck the deal which realised a 6 per cent yield.