Home / Property never sleeps

Property never sleeps

Although the economic shutdown in Melbourne has put a dampener on property transactions, the world continues outside Victoria, with several major transactions as we pass through September.

  • Specialist property fund manager Castlerock has added another key regional property to its Auslink Property Trust (No.2), spending more than $55 million to acquire the property at 45 Kembla Street, Wollongong. It beat Steel City’s previous record of $50.4 million for the sale of 90 Crown Street. The property has over 6,700 of lettable space and boasts a yield of 5.75%. Interestingly, the yield is in line with the valuation of many more cyclical and pandemic-exposed retail properties around Australia.

    The primary tenant is the Australian Tax Office, with ANZ and the Red Cross also occupying the building. The acquisition fits the group’s longer-term strategy, with CEO Hank Bronts stating, “this is an excellent acquisition for Castlerock, confirming our strategy to focus on property investments in government-tenanted buildings”. It becomes the tenth asset of the $300 million fund, which has a weighted average lease expiry (WALE) of over nine years.

    Over the ditch, Charter Hall Group (ASX: CHC) has announced the acquisition of a 49% interest in a $534 million portfolio of 70 service station properties in New Zealand. The properties are leased to BP with an average term of 20 years. The transaction occurred as part of a sale-and-lease-back deal under which the tenants agreed to extend their terms. The portfolio is diversified across the country, with 51% located in Auckland.

    The portfolio will be owned 50% by the Charter Hall Long WALE REIT (ASX: CLW) and the Charter Hall Retail REIT (ASX: CQR ), with an initial yield of 6.25%. The group’s CEO said: “This off-market transaction further extends our relationship with BP, builds on the success of our Australian partnership and demonstrates our conviction in triple-net-leased Long WALE convenience retail.”

    Staff Writer




    Print Article

    Related

    Warning: Attempt to read property "term_id" on string in /nas/content/live/theinsidenetwo/wp-content/themes/intheme/single-post.php on line 270
    Advice channel opens up to private markets, but are the products any good?

    Every investor wants access to the private markets, and every manager – established or otherwise – wants to help them get it. But when there’s a new product every day, how many of them will be any good?

    Staff Writer | 10th Apr 2024 | More
    Fund managers urged to position portfolios for new era as generations and geopolitics collide

    “The biggest mistake we make as investors is to think that the environment going forward is going to be similar to either the environment that we’ve had or the environment that is shortly foreseeable,” Langley said, adding that “all of this is going to get turned on its head”.

    Tahn Sharpe | 9th Apr 2024 | More
    US tech stock concentration narrative needs perspective: Claremont Global

    You don’t need to be a tech stock advocate to understand the importance of looking beyond the headlines and the hype, creating your own narrative based on facts, and assessing each opportunity with a clear lens.

    Tahn Sharpe | 8th Apr 2024 | More
    Popular
  • Popular posts: