Vicinity swaps Chatswood for Sydney, Chester Hill sells on a 3.78% yield

Listed A-REITs

  • Vicinity Centres (ASX: VCX) has entered an asset swap whereby it will sell a 49% interest in Chatswood Chase, Sydney in exchange for a 50% interest in 3 of GIC’s Sydney Centres (the Queen Victoria Building, the Galleries and The Strand Arcade). The 3 buildings have been acquired for $556M on a 5.1% blended capitalization rate, while the Chatswood Chase asset has been sold for $562.3M on a 4.75% capitalization rate. The transaction is expected to be accretive for VCX by approx. $5M or 0.13 cpu on a full year basis.

  • Scentre Group (ASX: SCG), Goodman Group (ASX: GMG) and Westfield (ASX: WFD) released Q3 updates and Charter Hall (ASX: CHC) held its annual general meeting. All companies maintained their earnings guidance. WFD was the strongest performer during the week, up 8.5%, of the back of its Q3 update.

  • Garda Diversified Property Fund (ASX: GDF) has entered into a contract to acquire 588 Swan St, Richmond VIC, a 3,621sqm land parcel within the Botanicca Corporate Park in Richmond Vic for $9.7M. GDF plans to construct a $62.5M five level A-grade office building on the site. The project will be funded via a $30M equity raising offered to eligible securityholders on a 1 for 4.3 basis at $1.15 per unit.

  • 360 Capital (ASX: TGP) announced it has extended its Offer Period for Asia Pacific Data Centre Group (ASX: AJD) to 7pm on 20 November 2017 (from 6 November 2017). TGP’s current offer of $1.95 per security for AJD has been unanimously recommended by AJD’s Board and is higher than AJD’s tenant and rival underbidder NEXTDC’s (ASX: NXT) offer of $1.87 per security. TGP has increased its holding to 62.96% of AJD, while NXT owns 29.2%.