End of week ASX wrap up: 22 July 2022

• The market closed today at 6,791.50 points, down 2.80 points from yesterday
• The market is up 188.40 points or 2.85% for the week
• This week saw IAP leave the ASX following the Charter Hall PGGM acquisition

This week was one of change, with Irongate removed from the official list following the Charter Hall and PGGM acquisition, Mirvac becoming the trustee of AMP Capital Wholesale Office Fund, and Brickworks launching a new trust with Goodman Group.

The broader market

The ASX200 closed today at 6,791.50 points, down 2.80 points. The market lost 34 points or 0.5% early in the morning before recovering and closing marginally down for the day.

For the week, the market is up 188.40 points or 2.85%, the ASX200 opened this week at 6,605.60 points.

Top-performing ASX listed real estate company shares: [DD Month] 2022

Source: ASX

The movement

On Monday, Australian Unity Office Fund (ASX: AOF) announced Aliro requested a further one-week extension to the Exclusivity Period. Aliro noted that it is in discussions with Hume in relation to a potential revised proposal and the extension of the Exclusitivty Period is required to determine if a revised proposal can be put forward which has the support of Hume.

AMP Capital Wholesale Office Fund (AWOF) investors voted on replacing the current trustee, AMP Capital Investors Limited, with Mirvac Funds Management Australia Limited. Mirvac will become trustee of AWOF in mid-October this year.

Read more here.

Finally for Monday, Irongate (ASX: IAP) was removed from the official list at the close of trading on Monday, following the implementation of inter-conditional trust schemes by which Charter Hall Holdings PGGM Industrial Partnership No.2 acquired all of the issued units in Irongate Property Fund I and Charter Hall acquired all of the units in Irongate Property Fund II.

On Tuesday, SCA Property Group (ASX: SCP) announced Mark Fleming will step down as CFO effective 1 September 2022 and has been appointed as COO, and Head of Funds Management and Strategy effective 1 September 2022. Mr Fleming will remain an Executive Director of SCP following the appointment.

On Wednesday Elanor Retail Property Fund (ASX: ERF) announced that an extraordinary general meeting of security holders will be held at 11 am AEST on Friday 19 August 2022.

On 24 June 2022, ERF announced the proposed privatisation of ERF through a transaction involving the disposal of Tweed Mall, an off-market buy-back to acquire up to 100% of ERF securities and the delisting of ERF to become the Elanor Property Income Fund.

Securityholders are being asked to vote on four inter-conditional resolutions to facilitate the Proposal.

A revised timetable was also part of the announcement, with the settlement of Tweed Mall disposal expected in early October, and delisting date early November this year.

Finally for Wednesday, Lifestyle Communities (ASX: LIC) released an update, the company said FY22 saw 401 new home settlements, up from 255 in FY21, and 143 resale settlmenets attracting a deferred management fee, FY21 saw 105.

LIC said a combination of new home settlements, continued compression in capitalisation rates for land lease assets, and movements in the residential property market, has resulted in a $92.6 million uplift in the value of Lifestyle Communities’ property portfolio (FY21: $108.6 million).

Lifestyle Communities’ also said cap rates on the annuity rental stream hve compressed from a range of 5.5% – 5.75%, to a range of 4.87% – 5.25% across the portfolio. The weighted average capitalisation rate is 5.18% (FY21: 5.57%).

Subject to year-end audit, LIC said it expects to report net profit after tax attributable to shareholders of $88.4 million –$89.4 million (FY21: $91.1 million). Excluding the impact of the changes in property valuation assumptions, the underlying profit after tax is expected to increase from $36.4 million in FY21 to a range of $60.5 million –$61.5 million in FY22.

Today, Brickworks (ASX: BKW) announced a joint venture with Goodman Group. The Brickworks Manufacturing Trust will comprise 15 manufacturing plants, a WALE of 16 years, and a gross asset value of $416 million.

Read more here.

That’s the latest in ASX-listed real estate.