train station credit card machine federation square
Image – Canva.
  • Centuria (ASX: CNI) acquired $224M Footscray office
  • Growthpoint acquired a $52M Sydney Olympic Park office
  • Market continues to trade over 7,300 points

The market this week has continued strong trading, with figures moving over 7,300 at least once every day this week.

Office property featured as a favourite of investors in the second half of the week, Centuria Capital Group and Growthpoint showed interest in Melbourne and Sydney respectively.

Vitalharvest moved to accept the tenth proposal made by Macquarie Agricultural Funds Management (MAFM), and Centuria Industrial REIT’s portfolio tipped over the $3 billion mark following three more acquisitions.

The mid-week wrap can be found here.

The broader market

The ASX 200 has been performing particularly well this week, every day this week saw trading move over 7,300 at some point.

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Image – Google.

Overall growth has also been pleasing to see despite the market dipping below 7,000 points in mid-May this year.

asx-end-week-11-06-2021-chart-year-long
Image – Google.

Property didn’t feature on the top five overall performers today.

At the time of publication, the top-performing real estate companies are:

Top-performing ASX listed real estate companies

Company Code Price Change (%)
McGrath Limited MEA 0.585 +6.36

Charter Hall Social Infrastructure REIT

CQE 3.645 +3.55
Elanor Retail Property Fund ERF 1.17 +3.54
Mustera Property Group MPX 0.30 +3.45
HomeCo HMC 5.45 +2.06

Source: ASX

The movement

Late Wednesday, SCA Property Group (ASX: SCP) announced the results of its property valuations, the portfolio increased by $446.2 million to $3.85 billion as at June.

SCA also said cap rate tightened by 48 bps to 5.91%, and valuation net operating income increased $1.5 million.

Thursday saw a flurry of activity, starting with Charter Hall Long WALE REIT (ASX: CLW). The company secured $200 million of additional long term debt, through medium notes issued with an 8.5 year duration, maturing in December 2029.

The notes were priced at a fixed coupon of 2.66% and “increase CLW’s investment capacity to approximately $330 million.”

Centuria Capital Group (ASX: CNI) launched the Centuria Government Income Property Fund (CGIPF). The single asset fund will include the recently acquired $224 million 1 McNab Avenue in Footscray, near Melbourne.

In Western Australia, Stockland Group (ASX: SGP) had a win, the Garden House pilot programme sold out this week. The project aims to be one of Australia’s most innovative and sustainable urban developments and is part of a joint venture between Stockland and the Western Australian Department of Communities.

AMP Capital (ASX: AMP) also had a win in the second half of this week, the company edged closer towards its aim to deliver $1 billion of retail development on behalf of UniSuper.

Thursday marked the completion of their latest $142 million development of Sydney’s Marrickville Metro, alongside Perth’s Karrinyup Shopping Centre – an $800 million development – due to open its first phase in July.

The months-long takeover bid for Vitalharvest (ASX: VTH) saw more news come in during the second half of the week.

Thursday saw MAFM give Vitalharvest its tenth proposal, with pricing that equalled Roc Private Equity’s offer earlier in the week. On the same day, it was announced MAFM now owns 38,695,000 VTH units, representing 20.9% of VTH units on issue.

“MAFML2 has also stated to VTH RE that, if the Ninth Roc Offer does proceed and is put to a vote by VTH unitholders MAFML2 intends to vote, or procure the vote of, those units (and any VTH units it acquires in the future) against the Roc Trust Scheme.”

Vitalharvest

Today, Vitalharvest made another announcement, informing the market it has now accepted the MAFM proposal.

Thursday also saw news Eureka (ASX: EGH) entered into a conditional contract to purchase 2.09 hectares of land 3 hours northwest of Brisbane in Kingaroy, to be used for the development of a seniors’ rental village. The purchase was $735,000.

In yet more news that came to market on Thursday, solar electricity generation and storage company Locality Planning Energy Holdings Limited (ASX: LPE) has passed the 40,000 customer milestone in Australia and is on track to add more than 10,000 this financial year.

Rounding out the Thursday news, Western Australian company Mustera (ASX: MPX) announced a raise of up to $8.72 million.

“This is a pivotal capital raising for the company and we are pleased to be able to offer our shareholders the opportunity to participate in the Offers.”

Nick Zbrowski, Mustersa Executive Director

Today, Centuria Industrial REIT (ASX: CIP) acquired three more properties. Located at 110 Northcorp Blvd, Broadmeadows and 40 Scanlon Dve, Epping, both in Victoria, and 160 Newton Road, Wetherill Park in New South Wales, the purchases tip the CIP portfolio value over $3 billion and make the total portfolio size 66 properties strong.

Finally today, Growthpoint (ASX: GOZ) exchanged contracts to purchase 11 Murray Rose Avenue in Sydney Olympic Park for $52 million. The A-grade metropolitan office building currently has multiple tenants, including B2G Consortium, Jardine Lloyd Thompson, and Energizer Australia.

That’s this week in ASX listed real estate companies, where the latter half of the week felt like a second half onslaught that saw the Illawarra Hawks take down the Wildcats by two points. Ouch, sorry Wildcats.

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