Posts Tagged ‘Property Trust’

ASX Company News: Investa Office Fund To Acquire Perth Office Building

Monday, August 27th, 2012

Investa Office Fund (IOF) announces it has exchanged contracts to acquire 66 St George’s Terrace, Perth for $82.375 million. The 11,447 square metre A-grade office building is centrally located in the core of the Perth CBD. The price paid reflects an initial yield of 8.1% after acquisition costs, and is forecast to generate additional earnings of 0.4 cents per unit in FY13. The acquisition will be funded from existing debt facilities and gearing post acquisition will be 25.5%, the bottom of the Fund’s 25% – 35% target range. The building is currently let at a low average rent of $550 per square metre, and has a 1.8 year weighted average lease expiry. The short lease expiry profile will allow the Fund to capture value uplift through crystallising the estimated rental reversion of 15%.

Toby Phelps, Fund Manager of IOF said: “Due to the strength of our balance sheet and low gearing levels the Fund is well placed to acquire assets at what is an opportune time in the cycle. IOF is underweight in Perth, which is currently the strongest office market in Australia. This asset will improve portfolio diversification and allow the Fund to capture short-term rental growth potential from the current low vacancy levels and strong tenant demand in this market.” In addition to the accretion to earnings, the acquisition is in line with our strategy of investing in investment grade CBD office properties and leveraging Investa’s management platform to improve the Fund’s risk-adjusted returns.”

Investa Office Fund (IOF) is an ASX-listed real estate investment trust (A-REIT) and is included in the S&P/ASX100 index. The Fund is a leading owner of investment grade office buildings and receives rental income from a tenant register comprised predominately of Government and blue chip tenants. IOF has total assets under management of AU$2.5billion with investments located in core CBD markets throughout Australia and select offshore markets in Europe. IOF’ strategy is to reposition the portfolio to an Australian only focus. Investa Property Group is a fully integrated real estate company and one of the largest unlisted owners of commercial real estate in Australia. Since its inception in 2000, Investa has grown to control real estate assets of approximately AU$8.4 billion.

www.investa.com.au

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ASX Company News: Commonwealth Property Fund Acquires 10 Eagle St

Friday, June 15th, 2012

Commonwealth Managed Investments Limited, the Responsible Entity of Commonwealth Property Office Fund (CPA), announces the acquisition and settlement of 10 Eagle Street, Brisbane. The 28,000 sqm A-grade CBD office building was acquired for $195 million1 from Brookfield Australia Funds Management Limited (‘Brookfield’) in an off-market transaction. The asset was independently valued on a capitalisation rate of 7.5%.

CPA Fund Manager, Charles Moore, said: “Due to our strategic asset recycling program, active debt restructuring and subsequent low levels of gearing, we are well positioned to pursue value enhancing opportunities in the market.” Mr Moore said the asset, located in the heart of Brisbane’s ‘golden triangle’, has been acquired at an opportune time in the cycle and the purchase yield compares favourably with the Fund’s cost of debt, which will reduce to 5.9% per annum post acquisition. Angus McNaughton, Managing Director of Property for Colonial First State Global Asset Management said: “This asset provides the Fund with an outstanding opportunity to apply our proven active asset management model to enhance value in the near to medium term.”

Originally developed in 1978, 10 Eagle Street provides 30 levels of office accommodation with a net lettable area of 28,000 sqm. The acquisition price reflects the Fund’s plans to continue a capital works program (which is well progressed) and which includes the installation of destination control lifting, T5 lighting and sub-metering, to actively manage power usage which will assist in lifting the building’s NABERS energy rating from 3.5 stars to 4.5 stars.

Commonwealth Property Office Fund is an office sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in prime quality office property located in central business districts and major suburban markets across Australia. Its stock market trading code is CPA. The Fund is managed on behalf of more than 25,000 investors from 28 countries. CFSGAM is the consolidated asset management arm of Commonwealth Bank of Australia, and sits within the Bank’s Wealth Management division. Entities within CFSGAM provide management services to the Trust.

www.cfsgam.com.au/cpa/

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ASX Company News: Abacus Property Group Sells Lennon Plaza For $56.75 million

Tuesday, May 29th, 2012

Abacus Property Group (ABP) has exchanged contracts for the sale of its integrated hotel/office/retail property, Lennons Plaza, in Brisbane’s Queens Street Mall for $56.75 million. Settlement is scheduled to occur in July 2012. The property was acquired in December 2003 for approximately $30 million and has provided the Group with strong and stable cashflows. The asset was most recently valued at approximately $55 million in December 2011. The sale will deliver an asset level IRR of circa 17%, above Abacus’ investment return benchmark, and is a pleasing result for the Group during this challenging real estate environment. Funds from settlement will provide additional liquidity to Abacus’ balance sheet for further acquisition opportunities and validates Abacus’ core plus strategy.

www.abacusproperty.com.au

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ASX Company News: Colonial First State Releases Retail Figures

Friday, January 27th, 2012

Colonial First State Property Retail Pty Limited, Manager of CFS Retail Property Trust (CFX), released its headline retail sales statistics to 31 December 2011 across its portfolio of Australian shopping centres.

Michael Gorman, CFX Fund Manager said: “CFX’s December specialty sales figures were solid, reaffirming our view that our retail tenants continue to benefit from being located within a well-managed high quality portfolio of Australian shopping centres.” Comparable retail specialty sales growth for the 12 months to 31 December 2011 was 2.9% compared to 1.2% for the 12 months to 30 September 2011. Comparable total retail sales were up 1.1% for the year compared to 0.6% reported for the year to 30 September 2011. This reflects the inclusion in the comparable basket of the shopping centres where major redevelopments were completed in November 2009.

Angus McNaughton, Managing Director of Property for Colonial First State Global Asset Management, said: “At a time when negative commentary on the Australian retail environment continues to dominate headlines, CFX’s sales results highlight the benefits of having the Trust’s centres managed by one of the strongest asset management teams in the country”.

CFS Retail Property Trust (CFX) is a retail sector-specific Australian Real Estate Investment Trust (A- REIT) which invests in high quality retail assets including regional and sub-regional shopping centres and retail outlet centres across Australia. Its stock market trading code is CFX. The Trust is managed on behalf of more than 18,000 investors from 24 countries.

www.colonialfirststate.com.au

http://www.traderdealer.com.au/fundamentals/cfx

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ASX Company News: Growthpoint Properties Sells Scoresby Property

Tuesday, May 17th, 2011

Growthpoint Properties Australia (GOZ) is pleased announce that it has signed a Contract of Sale to sell 6-10 Koornang Road, Scoresby, Victoria for $4.6 million. The Property was sold at its 31 December 2010 book value to an owner-occupier. Settlement is due to occur on 30 June 2011 with net proceeds being applied to reduce debt. The board of Growthpoint Properties Australia determined that the Property does not meet its investment criteria due to its relatively small value compared to the remaining assets of the portfolio, its older improvements and upcoming lease expiry in early 2012. Growthpoint Properties Australia seeks expressions of interest for an adjoining property, 1304 Ferntree Gully Road, having also determined that this property does not meet its investment criteria.

Growthpoint Properties Australia is a publicly traded ASX listed A-REIT (GOZ), that specialises in the ownership and management of quality investment property. It has a market capitalisation of approximately AUD $404 million and trades as a stapled security. It owns interests in a diversified portfolio of 32 office and industrial properties throughout Australia valued at approximately $988 million and has an investment mandate to invest in industrial, office and retail properties. GOZ aims to grow its portfolio over time and diversify its property investments by asset class, geography and tenant exposure through individual property acquisitions, portfolio transactions and corporate activity (M&A transactions) as opportunities arise.

www.growthpoint.com.au

http://www.traderdealer.com.au/fundamentals/goz

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ASX Company News: Charter Hall Group Acquires Woolworths Distribution Centre

Tuesday, September 28th, 2010

Charter Hall Group (CHC) is pleased to announce that its flagship industrial wholesale fund, Core Plus Industrial Fund (CPIF) has agreed to acquire a new Woolworths Regional Distribution Centre in Tasmania for $75 million.

Construction is due to commence in October 2010 and the Centre will comprise approximately 46,000 square metres of state-of-the-art logistics space. The facility will be developed by Woolworths Limited who will lease the premises for 25 years from completion, anticipated to be late 2011. The facility will be operated by Statewide Independent Wholesalers Limited and will service 28 Woolworths supermarkets, 19 BWS stores and 208 independent retailers throughout Tasmania.

The property was purchased on an initial yield of 8.6%. The guaranteed fixed annual rental increases of 2.8% will further anchor CPIF’s solid long term rental escalations generated from a portfolio that will now boast a 12 year weighted average lease expiry (WALE). The acquisition will be funded via a combination of debt and equity, with equity drawn from the proceeds of the Fund’s recent successful equity raising, which has secured approximately $75 million from both domestic and global investors. Charter Hall is confident of securing further equity for the Fund as its capital raising continues towards its $150 million target.

David Harrison, Joint Managing Director said: “This significant off market transaction further demonstrates the strength of the Group’s relationships with major corporate companies such as Woolworths. We continue to source quality long WALE assets to further diversify what is a pure logistics fund designed to maximise NTA and income growth and avoid lease expiry downtime and capital expenditure. “We are also pleased to welcome a new major Australian superannuation fund and London-based pension fund as investors onto the CPIF register and look forward to welcoming several new investors in coming months as CPIF expands further,” Mr Harrison added.

Charter Hall Group is a property funds management and development company, based in Sydney with offices in Melbourne, Brisbane, Perth, Adelaide and Chicago. Charter Hall Group combines Charter Hall Limited with Charter Hall Property Trust, which own and/or manage over $10 billion in real estate assets.

www.charterhall.com.au

http://www.traderdealer.com.au/Fundamentals/chc

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ASX Company News: Colonial First State Property Acquires DFO Stores

Saturday, September 25th, 2010

Colonial First State Property Retail Pty Limited, Manager of CFS Retail Property Trust (CFX), announced that the Trust has agreed to acquire four retail outlet centres which are currently part of Austexx Proprietary Limited’s Direct Factory Outlet portfolio. The Manager believes these centres offer strong fundamentals and will support the creation of long-term unitholder value. CFX will acquire the following four DFO centres – DFO Homebush, Homebush, New South Wales; DFO Essendon and Homemaker Hub, Essendon, Victoria; DFO Moorabbin, Moorabbin, Victoria, and DFO South Wharf and Homemaker Hub, Melbourne, Victoria (50% interest). The DFO centres will be acquired at a cost of $498 million (excluding transaction costs) which reflects an 8.26% weighted average capitalization rate. Funding will be sourced through a fully underwritten $540 million institutional placement.

Michael Gorman, Fund Manager of CFX said: “This is a unique opportunity to enter an increasingly important, yet immature retail format and sub-sector in Australia. We are pleased to have been able to negotiate this acquisition, while retaining a strong balance sheet. The DFO centres reinforce the Trust’s position as one of Australia’s leading retail real estate owners and are complementary to CFX’s existing strategy and portfolio.” Darren Steinberg, Head of Property said: “This is a significant milestone for CFX. It provides investors with exposure to a retail format which management expects, based on overseas experience, can achieve sales growth in excess of regional and sub-regional shopping centres over the medium term.”

As part of the acquisition, CFX will own the Australian ‘DFO’ and ‘Homemaker Hub’ brand names. CFX plans to use these brands in VIC, NSW, WA and SA providing the ability to selectively expand CFX’s presence in these markets in the future. CFX will provide Austexx with an exclusive license to use the brands in QLD, TAS and ACT. CFX will leverage the expertise of Colonial First State Global Asset Management applying its intensive asset management approach to reduce vacancies, remix tenants where appropriate, increase tenant interaction, undertake targeted marketing and enhance lease  structures across the DFO centres to drive growth and enhance value. The acquisition of the DFO centres will be funded by a fully underwritten $540 million institutional placement.

CFS Retail Property Trust is a retail sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in high quality regional and sub-regional shopping centres across Australia.

www.colonialfirststate.com.au

http://www.traderdealer.com.au/Fundamentals/cfx

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