COMMERCIAL PROPERTY, SALES & LEASINGREAL ESTATE INVESTMENT TRUSTS & FUNDS

Abacus seeks haven in Oasis and self storage investments

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ABACUS Property Group has acquired four self storage facilities in Adelaide and Sydney, as well as the remaining 60% of the Oasis Centre in Queensland.

The acquisitions, to be funded by debt and proceeds from its recent entitlement offer, are located in Windsor Gardens and Woodville North, Adelaide and in Kirrawee and Revesby, Sydney and will bring Abacus’ portfolio to 96 locations for approximately $1.3 billion.

The facilities were purchased for $44.2 million, excluding transaction costs, with settlement anticipated in May of 2021.

The remaining 60% of the Oasis Centre in Broadbeach was acquired for $103.5 million, excluding transaction costs, reflecting a net income yield of 7.3% and the current book value.

Abacus acquired the initial 40% of the Oasis Centre in March of 2015, while KKR Oasis Pty Ltd held a 60% interest, with Abacus providing property management, leasing and development services for the asset.

Since 2015, the centre has been repositioned and now has a more diversified income stream, as well as 96% occupancy and a WALE of 5.2 years.

In acquiring full interest from KKR, Abacus intends to further reposition the asset towards office, health and beauty services, amongst other uses.

“Since our strategic refocus announced in 2018, we have successfully and efficiently transacted to pivot the Group’s balance sheet towards strong income producing assets, and are confident through execution of strategic asset plans, each of the assets will deliver long term sustainable returns for our stakeholders,” said Steven Sewell, managing director of Abacus.

An 100% interest in a 444 Queen Street office tower in the Brisbane CBD became available for the first time, after Abacus and the Public Trustee of Queensland put it on the market.

Meanwhile, along with Charter Hall, Abacus acquired 241 Adelaide Street for a $63.5 million in March.

Additionally, Abacus has exchanged contracts to sell six small scale industrial and office assets in FY21, for a total of $63.1 million. Settlements for these sales are expected to take place between April 2021 and April 2022.

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