Mirvac and Blackstone are selling their joint interests in 60 Margaret Street,SydneyCredit:Nic Walker
“The flows of capital are at a significant turning point,the big buyer of 2021,real estate investment trusts (REITs) are retreating rapidly this year selling more than they are buying,” Rader said in her investment update.
Ray White data shows that to the end of August,$48.6 billion has been invested in the commercial property sector with NSW the preferred location,accounting for 43.3 per cent of the sales,a rise of 5 per cent on last year’s results.
Victoria similarly has increased its holdings on 2021 results,now 27.8 per cent,while markets such as Queensland and Western Australia,which were attractive last year due to their strong population gains,economic growth,and future potential,have now slowed.
Loading
In Melbourne,Charter Hall led the charge with the purchase of a half share in the Southern Cross Towers complex,through its unlisted office trust for $1.02 billion on a yield of 4.35 per cent. Also,a 50 per cent stake in the $800 million,555 Collins Street was sold to the Singaporean sovereign fund GIC.
“Looking at asset classes,the confidence in office assets has returned while industrial sales have now moderated after a standout 2021,while retail,hotels,and medical/aged care have all seen uplift in activity this year too,” Rader said.