Australia / Brisbane
Mar 02 2018Add to Favorites
The recent sale of the Chinatown carpark by a Trust managed by Sydney based property group Ashe Morgan in Brisbane’s Fortitude Valley for $64 million, ended an energetic 2017 for the group in Queensland which also saw the group purchase the Health and Forestry buildings in the Brisbane CBD for $66million.
Ashe Morgan acquired the carpark as part of the Valley Heart Portfolio in 2015, along with the 14,000sq m T.C. Beirne building for $79 million.
At the time, the two assets were physically and legally connected by an aerial pedestrian bridge which meant that the portfolio contained a range of retail, commercial and carpark uses. This, combined with the level of vacancy (around 11,000sqm of tired commercial space) and the capex required, meant the property was able to be acquired on a very compelling basis.
Ashe Morgan removed the pedestrian air bridge allowing the properties to exist as independent assets. The 450 bay carpark was upgraded and secure parking installed on a new 15 year lease.
Ashe Morgan still retain the T.C. Beirne building which is being progressively upgraded to continue to deliver strong ongoing investment income for the Trust. The ground floor retail of the T.C Beirne building is currently being refurbished by Hutchison builders to create a high quality, vibrant retail offering that supports the office tenants of the building and provides amenity for the local area and activates the central Valley precinct, streetscape and mall.
Residential developer Legacy Property is set to commence a syndicated equity raise for its 7thand final stage of Caddens Hill, with minimum investment amounts starting at $250,000, targeting 17.5% investment return over the twelve-month construction period.
MP Funds Management (MPFM) has made its first investment of 2019, a co-investment with another group that MPFM has a successful and ongoing co-investment relationship with. The acquisition of the Crossroads Homemaker Supercenter (the subject property) is an opportunity of scale and dominance in one of Australia’s most significant growth regions. The centre offers an existing net lettable area of 47,997sqm on 143,997sqm land over 4 separate lots. 93% of the property income is underpinned by national retailers including Bunnings Warehouse, Freedom, Fantastic Furniture, the Good Guys and Nick Scali.
Dexus today announced its result for the half year and reaffirmed its guidance for distribution per security growth of circa 5% for FY19. Dexus Chief Executive Officer, Darren Steinberg said: “It has been a productive six-month period where we have added value through enhancing our development pipeline and attracting new investors to our funds management business. This has all been achieved while maintaining low balance sheet gearing. “In our office portfolio we continue to outperform the MSCI office benchmark1 over one, three and five years through driving higher rents and lower incentives, particularly in Sydney which has been reflected in property valuations during the period. “In our funds management business, we now have $15 billion under management with investors and partners that can invest alongside us through the cycle, reinforcing our objective of being the wholesale partner of choice in Australian property.”
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