Billionaire Paul Lederer leads charge as private capital dominates property deals
Paul Lederer will slot 23 Furzer Street, Phillip, into a new fund.
The country’s billionaires are making their presence felt in a series of end of year property deals, ranging from office blocks to shopping centres, as they get in just ahead of large institutions returning in force to buying assets.
In one of the largest plays, Sydney-based billionaire Paul Lederer has tied up his purchase of the Sirius complex in the Canberra suburb of Phillip from listed giant Mirvac for about $305m.
The block’s sale is one of the largest office buys in this cycle, with the deal by his LDR Capital operation both resetting the national capital’s office market, and showing that private capital is making the running in key areas.
The billionaire, best known as a co-owner of the A-League soccer team Western Sydney Wanderers, also made a takeover play for the Elanor Commercial Property Fund in August. That scrap is ongoing after the takeover ended without the billionaire gaining full control, although negotiations about the listed fund’s future are underway.
However, the property in the ACT is destined for a new fund that could see Lederer team up with other wealthy investors to take on more projects. He is considered one of the best traders and is buying while the office market is at a low point nationally, though a recovery is starting to emerge.
Mirvac held the ACT complex at a book value of $335.7m and is active in areas including build-to-rent.
JLL’s Luke Billiau, Tim Mutton and Kate Low, and Colliers’ Paul Powderly, Matthew Winter and James Mitchell handled the sale.
The Karedis family has purchased a half stake in Melbourne’s Sunshine Marketplace Shopping Centre.
Meanwhile, the billionaire Karedis family is putting its own property savvy on display. It has made a rare foray into Victoria with the purchase of a half stake in Sunshine Marketplace Shopping Centre for $71m. The group’s Arkadia operation has snapped up the interest from Aware Super, which is exiting profitability after buying into the centre two years ago for $64m.
The latest deal was brokered by JLL’s Nick Willis and Sam Hatcher. Aware has recharged its retail property portfolio with a series of deals that has seen it buy The Barracks precinct in Brisbane and the Home HQ Artarmon on Sydney’s north shore.
The spurt of activity has made Aware one of the most active traders of retail property in this half amid a recovery in the market. The Melbourne complex is co-owned by listed shopping centre giant Vicinity Centres, which will retain its stake and keep managing the complex.
Theo Karedis has a fortune estimated at about $1.18bn according to The List – Australia’s Richest 250. It was derived from Theo’s Liquor, which was sold to Coles for about $200m in 2002, and the rising fortunes of the Arkadia Property Group.
The Karedis family switched focus to property and owns part of its portfolio with the billionaire Laundy family. They have properties including the Sheraton Grand Mirage on the Gold Coast, the Sofitel Noosa, and Crowne Towers on the NSW Central Coast.
Arkadia now owns about 25 retail and commercial properties. It is also active in developing and has plans for a four-tower project on Sydney’s lower North Shore in Neutral Bay.
Wealthy offshore players are also active in the market. The listed office fund, Centuria Office REIT sold off a Chatswood office building for $90m to an Asian investor who is planning a residential conversion.
The building at 9 Help Street was sold via Mike Stokes of Stanton Hillier Parker International and showed a 12.5 per cent premium to its June book value. The B-grade office has been part of its portfolio since the company floated and the manager pointed to its lift since 2014 when it was worth $43m.
