18/01/2012 - 10:12

Major Transactions

18/01/2012 - 10:12

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Major Transactions

CBD sales top $1bn

Property group Stockland capped off a busy 2011 for office sales in Perth, with the sale of a 50 per cent interest in Exchange Plaza for $157.7 million.

As foreshadowed in WA Business News’ final 2011 edition, this transaction took the total value of CBD office sales for the year to an unusually large $1.05 billion.

The Exchange Plaza stake was sold to AMP Capital Wholesale Office Fund, while the remaining 50 per cent is owned by a syndicate managed by Colonial First State.

The sale price was at a premium of $7.7 million to June 2011 book value.

The Exchange Plaza sale followed the sale of Stockland’s 50 per cent interest in Bankwest Tower in July, for $130 million.

That was part of an asset swap with Brookfield, which moved to full ownership of Bankwest Tower while selling two residential developments in Perth’s north-east to Stockland for $271 million.

Other major CBD office transactions last year included: Commonwealth Superannuation Corporation’s purchase of 50 per cent of QV.1 Tower for $310 million; GDI’s purchase of 197 St Georges Terrace for $152 million; and Motor Accident Commission of SA’s purchase of 225 Adelaide Terrace for $103 million.

Aspen in $28m Alcoa sale

ASPEN Group has executed a binding contract for the sale of the Alcoa office building in Booragoon, for $28.25 million.

The transaction includes a deferred settlement of $3 million for 30 months. The deferred component is secured by way of a second mortgage and parent company guarantee and attracts a coupon of 5.25 per cent per annum.

Aspen said the sale provided a 64 per cent increase over the original acquisition price of $17.35 million in 2003.

The sale price represented a small premium to the June 30 2011 book value of $28 million, and equates to book value when assessing the net present value position of the transaction.

Managing director Gavin Hawkins said the sale was in line with the group’s strategy of looking to improve the quality of its portfolio, and at the same time strengthening its balance sheet position through the selective sale of non-core assets.

Masters buys Joondalup site

WOOLWORTHS’ new retail arm, Masters Home Improvement, plans to build its second store in Western Australia at The Quadrangle in Joondalup following its successful bid in Landcorp’s request for proposal.

“Masters will build a 13,500 square metre store, create around 200 construction jobs and employ more than 150 staff”, Landcorp general manager metropolitan Luke Wilcock said.

Masters development manager John Young said the additional site in Joondalup would further improve the Masters store network and help bring competition in WA.

Masters expects to start construction on its 4.49ha site around mid-2012 and be open for business about a year later.

Mr Young said the new 13,500 Masters store would be part of a development that would include other bulky goods retailers. 

The first Masters store in WA is due to open in Baldivis next month. The stores will compete with the Wesfarmers-owned Bunnings stores.

Kresta factory fetches $4.8m

WINDOW furnishings manufacturer and retailer Kresta has sold a factory unit at Malaga for $4.8 million. 

The factory unit was surplus to the company’s needs after the recent rationalisation of manufacturing operations.

Funds from the sale have been applied to the company’s working capital with $1.2 million being used to reduce bank debt.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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