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 7th and final stage of Caddens Hill, with minimum investment amounts starting at $250,000, targeting 17.5% investment return over the twelve month construction period. Legacy Property has $3bn of projects completed and in progress consisting of c.3,600 dwellings . 14 projects have been completed with another 7 underway, gross completed project values range from $85m to $248million for each project.
Home loan approvals have fallen significantly off the back of the APRA and the Royal Commission initiatives together with new Responsible Lending Criteria. The ABS recently reported that home loan approvals have fallen by 13.6% year on year and within that, investment loans have come back by c.20%
Off the back of successfully settling a $48m syndicated first mortgage for a residential apartment development in Sans Souci just weeks ago, Sydney-based real estate investment manager Centennial Property Group (CPG) opened a new fund with a focus on the industrial and logistics market, Centennial Industrial and Logistics Fund II (CIL II). The fund, available only to wholesale and private high net worth investors, opened on 1 November and was seeking to raise c. $38 million. CPG closed the fund less than two weeks later, well before the official close date, due to oversubscription.
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