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🏌️ GreenFort Capital Targets $800M Land Lease Portfolio

GreenFort Capital, in partnership with Gaw Capital, acquired Willow Village in Queensland’s Gympie region as part of a planned A$800 million land lease portfolio.

June 24, 2024

In partnership with

Morning. ☕

It’s been a busy week in real estate. Here’s the agenda for today:

  • Deals and Projects

  • Investment Banking & Private Equity

  • Economics & Data

  • Policy

  • Proptech

Lets dive in.

Deals and Projects

BTR and Co-living

  • RF CorVal has submitted plans for two mixed-use towers at 110 George Street, Parramatta, valued at A$544M, comprising a 47-storey BTR tower and a 30-storey commercial tower. (TUD)

Residential

  • APKC filed plans for an eight-storey, 80-apartment development at 573 Gardeners Road, Mascot, with an estimated cost of A$62.7M. (TUD)

  • Cedar Woods has filed plans for the final piece of its Glenside masterplan in Adelaide, proposing an 8 level building. (TUD)

  • Lewis Land has appointed Greyburn to build the first stage of the A$1.5B Harbour Shores project in Biggera Waters, Gold Coast. (TUD)

  • Orosi Developments has filed plans for a A$250M project featuring 50 luxury homes in Rose Bay, Sydney. (TUD)

  • Gurner and Qualitas have completed their first build-to-rent project, Beach House in St Kilda, Melbourne, featuring 297 apartments with resort-style amenities, part of a A$3.2B pipeline. (TUD)

Office

  • Mirvac is selling the 34-storey office tower at 367 Collins Street in Melbourne to PAG for A$340M, which is nearly a 20% discount from its peak value of A$428M at the end of 2021. (AFR)

  • Mirvac is finalizing the sale of the 11-storey office building at 40 Miller Street in North Sydney to US investment manager Barings for about A$145M. (AFR)

  • RF CorVal acquired two office buildings in Newcastle from Dexus for A$43.3M, over 35% below their peak valuation of A$67.35M in 2021, as Dexus fund unitholders voted to wind up the fund by June 30, 2024. (APJ)

  • Merlino Development Group plans to transform the former North Adelaide Primitive Methodist Church at 230 Tynte Street into 803 sqm of office space. (TUD)

  • The ASX will relocate from 20 Bridge Street to Investa and Manulife’s 39 Martin Place in Sydney, securing 85% pre-commitment of the building which was acquired for A$800M in 2021. (APJ)

Industrial

  • Cadence Property sold a 4.4ha Broadmeadows industrial site for A$28.8M to Elanor Investors, shortly after purchasing it for A$22.75M in April 2023. (RE Source)

  • Westbridge Funds Management sold a Canning Vale industrial property for A$12.3M. (APJ)

Retail

  • Scentre Group and Barrenjoey acquired a 50% stake in Adelaide's Westfield Tea Tree Plaza for A$308M, below the A$349.5M book value, through a preemptive agreement. (APJ)

  • The Hansen family is selling a Melbourne retail portfolio consisting of four shops covering 736sqm at Elizabeth Street. (RE Source).

Retirement & Land Lease Communities

  • GreenFort Capital and Gaw Capital have launched a joint venture for an $800 million pipeline of land-lease community projects, starting with sites in Hervey Bay and Gympie, totaling 282 homes. (TUD)

Hotels & Pubs

  • The Travelodge Resort Darwin at 64 Cavenagh Street, comprising 224 rooms is up for sale with potential for student accommodation conversion. (TUD)

Alternatives & Land

  • Stockland plans to build a A$27M, 130m pedestrian bridge over Lake Kawana at Birtinya, Sunshine Coast, as part of a larger $350-million infrastructure project. (TUD)

  • Lyndoch Living sold its Warrnambool healthcare center to Gunditjmara Aboriginal Cooperative. (RE Source)

Investment Banking & Private Equity

GreenFort Capital talrgets $800M land lease portfolio

  • GreenFort Capital, in partnership with Gaw Capital, acquired Willow Village in Queensland’s Gympie region as part of a planned A$800 million land lease portfolio.

  • This marks GreenFort’s second property under its Liven Communities brand, following a previous acquisition in Hervey Bay, with both properties contributing approximately A$200M to the total portfolio. (AFR)

Economics & Data

Foreign demand for Australian real estate declines in 1H24

  • Overseas interest in Australian residential real estate declined in the first half of FY24, with approved housing purchases by foreign buyers dropping to 2954 from 3196 a year earlier, reflecting a slowdown in the post-pandemic recovery.

  • The largest number of foreign purchases in 2023 occurred in Victoria, followed by Queensland and NSW. (AFR)

Office property market still facing challenges

  • Dexus and Growthpoint Properties reported significant declines in office property valuations, with Dexus's portfolio down 11.3% and Growthpoint's down 6.2% in the past six months.

  • High vacancy rates and ongoing incentives for tenants continue to pressure the office market, with Sydney and Melbourne vacancies at 14% and 18%, respectively. (AFR)

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Policy

NSW land tax increase targets landlords and holiday homes

  • The NSW Government will implement a A$1.5B increase in land taxes, affecting landlords, holiday homes, and businesses by freezing the tax-free threshold at A$1.075M.

  • The tax changes will broaden the scope of land tax, leading to higher costs for property owners, potentially impacting renters as costs are passed down. (AFR)

Proptech

Equinix invests $240M in Sydney and Melbourne data centers

  • Equinix is investing $240 million to expand its data centers in Sydney and Melbourne, adding 4,175 cabinets to meet the growing demand for "private AI."

  • Morgan Stanley forecasts Australia's data center capacity will grow significantly, increasing electricity demand from 5% to 8% of national generation by 2030. (AFR)

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