11 April 2002
General Property Trust has received Victorian Government approval to redevelop the 59,000mÂ² Melbourne Central retail centre, expected to cost $A195 million & to be completed by the end of 2004. It has a forecast 8.5% year 1 yield. GPT acquired a major interest in the centre in May 1999 and took full control in March 2001. The centre has 4 linked buildings — a 46-level office tower, shopping centre & 2 parking buildings. The retail revamp was accelerated once Japanese department store Daimaru decided to quit the centre in July. GPT has gearing of only 20%, so can easily fund the project, though it also has heavy commitment to development in Melbourne’s Docklands.
9 April 2002
Pennsylvania Real Estate Investment Trust has bought the Beaver Valley enclosed regional mall, 56km from Pittsburgh’s central business district and 24km from its airport, from the California Public Employees’ Retirement System (CalPers) for $US61.3 million, equating to an 11.1% capitalisation rate based on projected 2002 net operating income. The 102,000mÂ² mall is 91.5% occupied. The reit has borrowed $US48 million over 10 years from CS First Boston at 7.4% and will draw the rest of the acquisition price from a bank credit facility. The mall had $US123 million of sales last year and same-store sales of $US264/ftÂ² ($NZ6495/mÂ²).