IN THIS ISSUE

Sales and Leases

Commercial 4

Retail 6

Industrial 8

Residential Developments 10

Residential Properties 10

Rural 11

Hotels and Leisure 12

Specialised Properties 13

Transactions in Review November 2019

ABOUT THIS REPORT

Preston Rowe Paterson prepare research reports covering the main markets within which we operate in each of our capital cities and major regional locations.

This report summarises major transactions within these markets whilst adding transactional analysis to provide greater market insight.

The markets covered in this research report include the commercial office market, industrial market, retail market, specialised property market, hotel and leisure market, residential market and significant property fund activities.

We regularly undertake valuations of commercial, retail, industrial, hotel and leisure, residential and special purpose properties for many varied reasons, as set out later herein.

We also provide property management services, asset and facilities management services for commercial, retail, industrial property as well as plant and machinery valuation.

Sales Transaction

Rental Transaction

Transactions in Review | November 2019 2

Victoria Retail

Vicinity Centres has sold the Commercial Corio Central mall to IP Generation for $101 million Global fund manager LaSalle at a 3.8% discount to its Investment Management has book value snapped up the Central Square complex in Sydney’s southern core CBD precinct from MKH Properties on a tight sub 4% yield, equating to ACT Industrial a sale price of $325 million. The Charter Hall managed Direct Industrial Fund HIGHLIGHTS No.4 (DIF4) has acquired an industrial estate in Canberra on a capitalisation rate of 5.25%, showing a sale price of $34 million.

Transactions in Review | November 2019 3

Commercial

9 Wentworth Street, 323 Castlereagh Street, 2-12 Macquarie Street, Parramatta NSW 2150 Sydney NSW 2000 Parramatta NSW 2150

$64.25 million $325 million $415 million

5.12% Yield Sub 4% Yield 6.4% Yield

$8,396 per sqm lettable area $12,360 per sqm lettable area $7,699 per sqm lettable area

The Charter Hall Direct PFA Fund has Singaporean sovereign wealth fund GIC Global fund manager LaSalle Investment sold a seven storey office building in the and Charter Hall have teamed up to Management has snapped up the Central Parramatta CBD to a private investor on acquire the Jessie Street Centre in Square complex in Sydney’s southern a passing 5.12% yield. Parramatta office Sydney’s second CBD from Canadian core CBD precinct from MKH Properties market continues to see strong growth group Brookfield. The acquisition on a tight sub 4% yield. The B Grade, 23 on the back of low vacancy, prospective represents an ongoing partnership level property comprising approximately rental growth and a development between the two funds stretching back 37,000 sqm of gross floor area and pipeline consisting of major 15 years. The property comprises 53,900 26,295 sqm of net office area has room infrastructure projects and new sqm of net lettable area on a 13,530 sqm for further rental uplift and vacant space commercial developments. The circa site, which counts the Australian for lease. In mid-2018 the building 1980s constructed property comprises a Taxation Office, AMP Services Ltd and underwent refurbishment of the portico, net lettable area of 7,651 sqm and is various NSW government service lobby and lifts. The building stands on a 94% leased with a WALE of 3.5 years. tenancies as tenants in the building. At 2,809 sqm corner site opposite Central The sale price of $64.25 million is a gross the time of sale the property was 99.9% Station and . sale price, which does not take into occupied with a weighted average lease (AFR 18.11.19) account incentives on the sale. The expiry of 3.9 years. Parramatta is located property sold at a 15.9% premium to approximately 24 km west of the Sydney Charter Hall’s last valuation of the CBD. 50 Great North Road, property in June. Parramatta is located (AFR 06.11.19) Five Dock NSW 2046 approximately 24 km west of the Sydney CBD. $8.8 million (AFR 27.11.19) 192 Burwood Road, $5,616 per sqm lettable area Hawthorn VIC 3122

$420 gross psm lettable area A local private investor has snapped up Lvl 1 & 2, 72 Mary Street, a commercial property on the corner of Surry Hills NSW 2010 3 Years Great North Road and Fairlight Street. $700 gross psm lettable area The 1,567 sqm property occupies a land $411,180 p.a. holding of 1,258 sqm and comprises a 5 Years 2.5:1 FSR under a B4 Mixed Use zoning. Commercial card and expense The property sits on a dual street $823,200 p.a. management solutions business Inglogik frontage parcel and is leased with a has expanded into a bigger premises at a Redhill Education has moved to a newly stable holding income. Five Dock has newly leased 979 sqm office building in leased 1,176 sqm property on levels one recently been announced as one of the Melbourne’s inner east. The deal was and two of a five level building locations to the future Sydney West completed on a three year lease term commercial building in Sydney’s CBD Metro, which will run for the CBD with options at a gross rental of $411,180 fringe. The property is 9B approved and through to Westmead servicing nine per annum. Hawthorn is located features new building services and new metro stations. Five Dock is located approximately 6 km east of the amenities. Surry Hills is located approximately 10 km west of the Sydney Melbourne CBD. approximately 1km east of the Sydney CBD. (AFR 12.11.19) (AFR 21.11.19) CBD. (AFR 05.11.19)

Transactions in Review | November 2019 4

45-61 Waterloo Road, 2092 Logan Road, 93 Francisco Street, Macquarie Park NSW 2113 Upper Mount Gravatt QLD 4122 Belmont WA 6104

$331.3 million $18 million

5% Yield 7.5% Yield

$9,483 per sqm lettable area $2,308 per sqm lettable area

The remaining half stake in Macquarie $7.5 million The Paul Stubber owned Benmuni Pty Ltd Park’s Glasshouse Building has been sold has sold a 7,800 sqm office and 2.73% Yield in an off market deal by Jon Holland to warehouse facility in Perth’s city fringe to The Charter Hall Long WALE REIT who local investment firm Australian $3,019 per sqm lettable area will join The Charter Hall Direct PFA Fund Development Capital (ADC). The Belmont building sold on an initial passing yield as joint owners. The 34,898 sqm office DPA Property Group has acquired a 2,484 of 7.5% with a weighted average lease building known at the Glasshouse sold sqm commercial building opposite expiry of five and a half years. The on a yield of 5% with a substantial pre- Westfield Garden City on a 2.73% yield property is fully leased to rail solutions committment by The NSW Government from a private investor. DHA, also owners group Hitachi Rail and gym and to lease the property for a 12 year lease of the adjoining property, plan to recreation centre operator JSA. The 1.3 term. As a result of the purchase the refurbish and re-lease upon settlement. hectare site, which was redeveloped in Charter Hall Long WALE REIT will launch The property sold with a WALE under a 2007, comprises a modern two level a fresh capital raise to fund the year across 12 leases and has office building plus warehouse space and transaction. Macquarie Park is located redevelopment potential of up to 15 extensive landscaping. ADC is forecasting approximately 15 km north west of the floors. The property stands on a 3,976 to deliver a 9.5% distribution yield and Sydney CBD. sqm site and has 77 car spaces. Upper an internal rate of return of over 11%. (AFR 05.11.19) Mount Gravatt is located approximately Belmont is located approximately 7 km 12 km south east of the Brisbane CBD. east of the Perth CBD. (AFR 07.11.19) (AFR 20.11.19) 418-420 Bourke Street, Melbourne VIC 3000

$5.57 million 115 Cambrid