In the past week the commercial property market continued to see strong prices being paid for strategic acquisitions. Property fund manager Arcadia acquired a 50% share in the A-rated office building at 52 Goulburn Avenue, NSW for $176M on a 4.76% yield. The 50% share was acquired from Credit Suisse, with Brookfield owning the remaining 50%. The property is currently leased to the Australia Taxation Office until 2022 with fixed annual increases of 3.5%. The property will sit in Arcadia’s Australia Wholesale Property Fund (AWPF) and effectively provides Arcadia with a strategic ownership of 50% across the whole World Square complex, as it already owns half stakes in 680 George St and 560 Goulburn St.
During the week, Core Property also published the “Reporting Season Wrap Up” report, a review of 28 listed A-REITs following recently released results.
The report looks at the industrial, office and retail sectors and lists our 8 key picks based on yield and valuation metrics.