01 Sep Property buyers line up for large-scale asset sales
Investors are in standby mode for the next wave of big ticket deals, worth in the billions, as public and private trusts undertake strategic reviews of their portfolios.
In the recent 2014 earnings reporting season, companies including Scentre and CFS Retail, among others, said they were undertaking a strategic review of business which would likely result in asset sales.
These would be spread across office, retail and industrial properties, and already there are more than $2 billion being offered to the market in series of offmarket and advertised deals.
In one deal, Washington H. Soul Pattinson and Company is selling two logistics facilities covering 90,000 square metres in a deal estimated to be worth about $150 million.
WHSP put in $45.4 million in equity to develop the centres in Brendale, north-west of Brisbane, and 133-145 Lenore Drive, Erskine Park, in Sydney’s outer west, which carry 15 year leases to the fashion group that includes brands such as Rebel, Ray’s Outdoors and Amart Sports.
The properties are being marketed for sale in one-line by Michael Fenton from JLL and transaction adviser Hugh Williams from Pitt Street Real Estate Partners.
Mr Fenton, JLL’s Australian head of industrial said the portfolio has already received strong interest from both domestic and international groups due to the scale of the offering, long term leases and new state of the art facilities in prime industrial locations.
The real estate investment trusts (REIT) and owner occupiers are very active in South West Sydney, according to Colliers International director, Adrian Balderston.
Acknowledgement: Carolyn Cummins, Commercial Property Editor, Sydney Morning Herald. From: www.smh.com.au