Tuesday, 7th April 2020
Rialto Towers, Melbourne
$2 Billion Scape Deal for Student Accommodation (AFR)
· The country's largest student accommodation player Scape Australia has won Foreign Investment Review Board approval to take over rival player Urbanest after acquiring the $2 billion portfolio of dorms run by Urbanest.
· The deal will close to double Scape's existing size as it completes the takeover of 7000 student rooms and 14 operating buildings in Sydney, Melbourne, Brisbane and Adelaide.
· Scape is backed by deep-pocketed global funds, including Allianz Real Estate, AXA Real Estate Investment Managers and APG Asset Management Asia.
· Scape Australia operates four buildings and is constructing four more buildings in Sydney and Melbourne due for completion early next year.
· A further 17 sites nationwide are under development nationally. When they are complete Scape's portfolio will be almost 16,000 rooms.
· Before the virus escalated, Scape was about 85 per cent full. Some students had been prevented from arrival during the initial bans on travellers from China.
· Since then, more students had returned home to their worried parents, leaving Scape at below 70 per cent capacity. Mr Carracher expected it would fall to about 55 per cent to 60 per cent.
New South Wales
Eastgardens Office Lease (AFR)
· Children's occupational therapist PlaySense has leased a 158m² office at Level 4, 152 Bunnerong Road in Sydney's Eastgardens.
· Landlord Scentre Group leased out the office on a gross annual rate of $60,116.
Eastern Creek Lease (AFR)
· Barbecue business Firebrand Australia have leased a 1010m² premises at 94 Peter Brock Drive, Eastern Creek in Sydney’s west.
· The two-year lease for the near-new freestanding office-warehouse, comes with a gross rent of $130/m².
Macquarie Park Office Lease (AFR)
· DELV Pty Ltd has signed a three-year lease for a 455m² office at 12 Waterloo Road, Macquarie Park in Sydney's north-west.
· The Canberra-based company will pay a gross rent of $450/m².
Wetherill Park Leases (AFR)
· North Fork Pty Ltd has taken a five-year lease over a 5481m² freestanding industrial facility at 166 Newton Road, Wetherill Park, west of Sydney, from ESR Australia. The facility was leased at an annual rent of $120/m².
· J.J. Richards has secured a 2832m² building at 17-10 Denoci Close, Wetherill Park on a net annual rental of $368,264 with 4% annual reviews. The lease term is five years plus a five-year option.
Coolangatta Retail Sale (AFR)
· A Sydney-based investor has bought a 360m² Coolangatta retail property at 24-28 Griffith Street for $3.85 million ($10,694/m²).
Box Hill Office Lease (AFR)
· Eastern Melbourne Healthcare Network have leased new offices in Box Hill after signing up for 996m² of space at 990 Whitehorse Road, Box Hill.
· The six-year lease for the part-floor is $418,000 gross per annum.
· The building is predominantly leased to the Environment Protection Authority.
· The six-level, A-grade property has a net lettable area of 7911m² and a weighted average lease expiry (by income) of 2.43 years.
· Trinity College, part of the University of Melbourne, is also a tenant in the building after it took up to 10-year lease in 2014 for two floors and ground-floor space.
· Australian Unity bought the property in 2014 for $42.3 million. It is known as one of Melbourne’s most sustainable buildings with a 6 Star Green Star Office Design rating.
GIC and Dexus Take Place on Collins Street (AFR)
· Dexus have partnered with Singapore's GIC to purchase a half stake in the 55-storey Rialto Towers for $644 million.
· Investment activity has slowed due to the economic uncertainty caused by COVID-19, with the Rialto deal standing out as the largest single transaction since the onset of the crisis.
· The joint venture formed between the Singaporean sovereign fund and Dexus has taken a 50% stake in the tower, buying out the position held by the Kuwaiti-controlled St Martins Properties.
· Within the joint venture, GIC holds a 90 per share while Dexus, led by Darren Steinberg, holds the remainder. Dexus will manage both the JV and the Rialto Towers complex.
Kew East Office Lease (AFR)
· A 345m² fitted-out office at 620 High Street, Kew East in Melbourne has been leased on a five-year term from landlord 620Q Pty Ltd to Kruger ANZ on a net rate of circa $450/m².
Melbourne Office Tower Sold (AFR)
· A Japanese group is forging ahead with the acquisition of a Melbourne office building amongst the uncertain atmosphere surrounding COVID-19.
· The property at 200 Victoria Street in Carlton has been offloaded by Australian Unity's diversified property fund for $72 million – a 20% premium to its last book value – trading on a yield of just under 5 per cent.
South Yarra Office Lease (AFR)
· Southlink Projects will move into a 121m² office at 506/12-14 Claremont Street, South Yarra.
· The two-year and seven months lease, plus options, come on a net annual rental equating to about $450/m².