Abacus (ASX:ABP) grabs 1/3 of Myer Melbourne

Company News

by Melissa Darmawan

Property manager Abacus (ASX:ABP) has exchanged contracts to acquire a one third interest in “Myer Melbourne” in Victoria for $135.2 million while Charter Hall and Vicinity keep their piece of the pie.

Myer Melbourne is considered to be Melbourne CBD’s best known buildings with the property set to be owned by a conglomerate. It is 100 per cent leased to Myer Pty Limited and guaranteed by Myer Holdings Limited.

As this transaction occurs by the $2.6 billion property manager, Charter Hall Long WALE REIT (ASX:CLW) will simultaneously acquire one third interest as tenants-in-common with the remaining share kept by property manager, Vicinity (ASX:VCX)

The purchase will be funded by debt for $135.2 million, excluding transaction costs and reflects circa $10,157 per square metre of gross lettable area and a 6 per cent passing yield.

The building has a weighted average lease expiry of 10.5 years with settlement anticipated by the end of this month. 

Shares in Abacus (ASX:ABP) are trading 0.63 per cent higher at $3.17.

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