Who said that you buy for yield?

Discussion in 'Commercial Property' started by Scott No Mates, 16th Jul, 2018.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    Scentre it would seem has just purchased a 50% stake in Westfield Eastgardens at a yield of just 4.25%

    This site has a long history of Westfield managing and developing the site but not the ownership.

    There is a massive upside of a mooted 2700+ units to be built on the site (at a cost of $642M).

    Once built, they'll be sold off (assuming say avg $800k), that's another $800M in sales (or a GP of $1.5 added to the value of the site) and they will still control the income from the shopping centre.

    Linky

    Hint to residential unit investors - there's gonna be a lot more of them in Eastgardens to compete with your IPs.
     
    Scott No Mates, 16th Jul, 2018
    #1