Image: Canva.
  • URW takes total US deleveraging proceeds to $1.3 billion
  • GDI announced it executed three new Heads of Agreement to lease approximately 5,500 square metres
  • APZ announced it has contracted to acquire the Black Dolphin Resort Motel in Merimbula

Happy New Year from The Property Tribune. Today we look at the news and movements for ASX-listed real estate companies, with a little look back to December too.

The broader market

The ASX200 closed on 3 January 2023 at 6,941.80 points, down from 7,059.10 points in the morning.

Today the market has opened higher at 6,946.20 and is trading at over 7,000 at the time of writing.

The movement

On 22 December 2022, it was announced that the suspension of trading in the securities of DomaCom Limited (ASX: DCL) was expected to be lifted from the start of trading on Friday 23 December 2022 following the release by DCL of an announcement regarding pre-quotation disclosure.

It was also announced that the US Masters Residential Property Fund – URF Convertible Step-Up Preference Units (ASX: URFPA) will be suspended from quotation from the close of trading 22 December 2022 under Listing Rule 17.2, in anticipation of their conversion on Tuesday 3 January 2023. It was also noted that the suspension only applies to the URF Convertible Step-Up Preference Units and does not apply to any other quoted securities of the Fund.

On 23 December 2022, Eureka (ASX: EGH) announced it entered into a building contract to commence the expansion and refurbishment of its independent rental village at Brassall, in South-East Queensland.

The Brassall project includes the construction of 51 freestanding two-bedroom residences. The project also includes the refurbishment of existing communal facilities, including a swimming pool, community room and entry statement.

Initially purchased in July 2021. the village comprises 55 existing homes on a 9.8 hectare site, with surplus land available for brownfield development. The expansion project will increase the size of the village to its full potential of 106 homes.

Aspen Group (ASX: APZ) announced it has contracted to acquire the Black Dolphin Resort Motel in Merimbula in New South Wales. Settlement is expected to occur on 1 March 2023.

The Sapphire Coast property is about halfway between Sydney and Melbourne, and three hours drive from the ACT.

Black Dolphin is adjacent to Aspen’s Tween Waters Holiday Park and is separated by a minor side road.

The motel complex includes 49 units, comprising 47 rooms and 2 large apartments currently used as manager accommodation. The land spans 1.04 hectares as is zoned for medium density residential (R3).

The purchase price is $5.2 million, excluding transaction costs, equating to about $106,000 per unit.

On 28 December 2022, Adbri (ASX: ABC) announced it extended its cementitious materials supply arrangement with Independent Cement and Lime Pty Ltd to the end of 2023. ICL is Adbri’s exclusive cementitious products distributor in Victoria and New South Wales and is a 50:50 joint venture between Adbri and Barro Group.

James Hardie (ASX: JHX) announced a change in Company Secretary. Joseph C Blasko resigned as Company Secretary on 26 December 2022, and Aoife Rockett has been appointed Company Secretary effective 26 December 2022.

Unibail-Rodamco-Westfield (ASX: URW) announced on 27 December 2022 Paris, Amsterdam, that it has completed the sale of The Village in the San Fernando Valley of Los Angeles, to the Kroenke Organization. The sale price of $325 million (at 100%, URW share 55%), reflects an initial yield of 5.6% on the in-place Net Operating Income, and a 10.6% discount to the last unaffected appraisal.

On 3 January, GDI Property Group (ASX: GDI) released a business update. GDI announced it executed three new Heads of Agreement to lease approximately 5,500 square metres over fiver floors of its portfolio, including the first tenant to commit to the yet to be completed WS2, Perth.

Commenting on this leasing momentum, Managing Director of GDI, Steve Gillard said that it was pleasing that the strong levels of enquiry that GDI had been dealing with for some time now appears to be translating to leasing transactions. “During the second half of 2022 we experienced very high levels of leasing enquiry, and it is a very positive sign for GDI that this is now resulting in signed leases and Heads of Agreement”, Mr Gillard stated.

The two Perth CBD car parks purchased by GDI in December 2021 underperformed against budgets and expectations in April and May 2022 following the re-opening of WA to the rest of the country. GDI said the performance of both carparks now appears to have recovered with occupancy and revenues both exceeding budgets.

Finally, Unibail-Rodamco-Westfield (ASX: URW) announced the sale of Westfield Trumbull, in Trumbull, Connecticut, and Westfield South Shore, in Bay Shore New York, to a commercial real estate investment firm. The combined $196 million in sales are equal to their gross market value and reflect an initial yield of 9.5% on the in-place NOI.

This transaction brings URW’s total proceeds to date from the planned radical reduction of its financial exposure to the US to $1.3 billion, including the previously announced sales of The Village, Westfield Santa Anita, the Promenade development parcel, and the Palisade residential building, as well as the ownership transfer of five other regional properties.

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

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