Last week in A-REIT and ASX: 18 July 2022

Two partnerships were announced in the proptech sector
The Agency acquired Bushby Property Group in Tasmania
Charter Hall Social Infrastructure REIT acquired to QLD assets

A raise, a partnership, and an acquisition walk into a bar. The bar manager asked, “What’s the deal?” And without any sense of irony, they replied, “One raise, two partnerships and three acquisitions.”

The market kicked the week off last week at 6,602.20 points before reaching 6,650.60 on Thursday and closing out the week at 6,605.60.

The mid-week wrap can be found here.

The movement

While a raise wasn’t announced on Monday 11 July, the offer documents and share purchase plan for Openn Negotiation’s (ASX: OPN) $5 million raise, announced on the 4th of July, made its way onto the ASX market announcements on Monday 11 July.

Read more here.

Monday also saw a financial update from GARDA Property Group. The company said its Mackay industrial property was independently valued, with the value moving up 12% or $4.2 million to $39.2 million. The 13,843 square metre industrial facility is fully leased to Blackwoods, a subsidiary of Wesfarmers, with the lease expiring in January 2029.

GARDA also said its unaudited NTA per security is $2.05 per security and gearing is 35.6%.

On Tuesday Rent.com.au (ASX: RNT) announced it entered into a strategic partnership agreement with Origin Energy (ASX: ORG).

Origin will be the exclusive electricity and gas provider to the Rent.com.au group. RNT CEO Greg Bader said: “We have always preferred a single partner model because it means we can provide a seamless experience and negotiate great deals for our customers.”

Read more here.

Centuria Industrial REIT (ASX: CIP) completed its external valuations on 41 properties, representing circa 63% of its portfolio value as at 30 June 2022. The remainder will be subject to internal or Director’s valuations.

CIP said valuations increased the portfolio value by an estimated $48 million or 1.3% from 31 December 2021 book values, resulting in a total portfolio value of $4.1 billion.

The Agency announced the acquisition of Tasmanian real estate business Bushby Property Group, with consideration circa $5 million and to be funded via a combination of bank debt and existing cash reserves.

Read more here.

Finally, for Tuesday’s news, SCA Property Group (ASX: SCP) announced Chair Phillip Marcus Clark AO announced he intends to retire from the board of SCP on 30 November 2022.

Mr Clark was appointed in 2012 as the inaugural Chair of the SCP Board, and he has served as Chair since his appointment. He has also served as the Chair of the Nomination Committee, and as a member of the Audit, Risk Management and Compliance Committee, and Remuneration Committee.

SCP also announced that Deputy Chair Steve Crane will be appointed as Chair of SCP effective 1 December 2022 following Mr Clark’s retirement. Mr Crane joined the Board of SCP in December 2018, and is the Chair of the Remuneration Committee and a member of the Nomination and Investment Committees.

On Wednesday, One Managed Investment Funds, as responsible entity of Agricultural Land Trust (ASX: AGJ) advised that AGJ will be removed from the official list of the ASX at the commencement of trading on Thursday 14 July 2022.

Centuria Office Fund (ASX: COF) provided an operating update, including the acquisition of 57 Wyatt Street in Adelaide. The office building is currently under construction and completion is expected in the second half of FY23.

The building was acquired on an as if complete value of $40.2 million, with the developer, Centuria Developments, retaining construction and delivery commitments. The property was independently valued at $41.6 million, based on a capitalisation rate of 5.25%.

The 4,600sqm building is currently 55% pre-leased and is targeting a five-star Green Star rating.

COF also said it completed $257.5 million of debt refinancing and added an additional $50 million of headroom taking its total debt facilities to $962.5 million, across a diversified pool of six lenders.

External valuations were also carried out on 12 of 23 investment properties as at 30 June 2022, the remainder subject to internal or Director’s valuations. The completed valuations resulted in a like for like increase of $9.4 million, equating to a 2 cents per unit increase in NTA.

On Thursday, Charter Hall Social Infrastructure (ASX: CQE) announced the acquisition of a 50% interest in two newly constructed properties, being a TAFE campus and a specialist emergency medical facility located in Robina, Queensland for $40 million which reflects a passing yield of 4.4%. The properties were acquired in conjunction with the Charter Hall Direct Long WALE Fund which acquired the other 50% interest.

Read more here.

Lendlease (ASX: LLC) announced a joint venture with Mitsubishi Estate Asia to acquire the One Circular Quay development in Sydney for circa $800 million.

The initial funds will be for up front and deferred consideration, with an additional $50 million payment subject to certain project outcomes.

Upon completion, One Circular Quay is expected to consist of a 59-level luxury residential tower, with a second tower to comprise a 220-home luxury hotel.

Read more here.

Finally for Thursday, National Storage (ASX: NSR) announced FY22 underlying earnings guidance upgraded to a minimum of 10.5 cps, reflecting a 24% increase on FY21.

In the company’s update, NSR also said it had a Group REVPAM of $268 million, WACR remained steady at 5.86% and NTA is expected to increase to $2.32.

NSR also said 83 properties (39% of the portfolio) were independently valued, with directors’ valuations on the remaining properties. The valuation is expected to result in a net valuation uplift of approximately $304 million for the six month period ending 30 June 2022.

On Friday, Openn Negotiation (ASX: OPN) announced its partnership with Realty Assist. The partnership will allow cross marketing of Openn and the Australian property focussed payment and cash flow solutions group products.

Read more here.

Proptech Group (ASX: PTG) announced leadership team changes, including Luke Paverd’s promotion to PTG Chief Operating Officer; Luke Thomas’ promotion to Chief Commercial Officer, and Audrey Nicoll’s promotion to Chief Marketing Officer. Bill Nikolouzakis, PTG’s former Chief Revenue Officer, is leaving the business.

That’s the latest in ASX listed real estate.