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ASX 200 drops over 1%

ASX 200
Credit: Cimexus

The S&P/ASX 200 Index (ASX: XJO) fell by 1% today to 6,600 points.

Here are some of the highlights from the ASX:

Magellan Financial Group Ltd (ASX: MFG)

Magellan announced it’s buying a 10% stake in GYG for $86.8 million. GYG is an Australian based quick service restaurant chain specialising in made to order, fresh Mexican food with 147 restaurants across Australia, Singapore, Japan and the US.

GYG is led by founder and CEO Steven Marks as well as chairman Guy Russo, who used to be the CEO of McDonalds as well as Kmart and Target.

Hamish Douglass, the chairman of Magellan, said: “We are extremely pleased to become a shareholder in GYG. Magellan has deep investment experience in the quick service restaurant industry and we believe Magellan can both add and gain considerable insights as a major investor and supportive shareholder. GYG is a world class business with enormous growth potential and represents a highly attractive investment opportunity for our principal investments business.”

GYG founder and CEO Steven Marks said: “We are incredibly excited to welcome Magellan to the GYG family. Our ambition is to be the best restaurant company in the world and, to achieve that, we need the support of the best partners and strongest board. Magellan’s global experience and track record in the QSR space is truly world class and we could not think of a better qualified or more aligned partner to have alongside as we enter the next, most exciting phase of the GYG journey.”

The Magellan share price went down by around 0.3% today.

David Jones property

Charter Hall Group (ASX: CHC) announced that a consortium of Charter Hall funds and partnerships have exchanged contracts to purchase the David Jones flagship Elizabeth Street store in Sydney for a price of $510 million.

This property comprises 12 levels on a strategic 3,530 sqm prime CBD retail site which overlooks Hyde Park with views to Sydney Harbour.

David Jones, as the vendor, has in recent years completed a significant capital works program which has created a world class showcase of department store retailing according to Charter Hall.

Charter Hall’s consortium has acquired the property on a sale and leaseback transaction. It has a 20-year, triple-net lease with a minimum of 2.5% per annum rent increases, supplemented by an agreed turnover rent linked to sales performance. Charter Hall itself will hold a 25% holding, whilst Charter Hall Long WALE REIT (ASX: CLW) will own another 50% and the final 25% will be owned by Charter Hall DVP partnership.

The purchase price reflects a 5% initial yield based on the initial annual net rent of $25.5 million.

Charter Hall CEO and managing director David Harrison said: “This acquisition is consistent with our strategy in so many ways, namely: securing long weighted lease expiry, triple-net leased assets, combining the appetite of our managed funds and partnerships to partner with the group on high conviction prime real estate acquisitions, co investing group capital alongside our partners to secure attractive earnings growth from our property investment portfolio, whilst also expanding the group’s FUM platform.”

The Charter Hall share price fell by around 0.5% today.

Volpara Health Technologies Ltd (ASX: VHT)

Medical technology business Volpara announced that it has signed a five-year software as a service (SaaS) contract with BreastScreen Queensland.

It has run a successful pilot trial with BreastScreen Queensland on the Gold Coast. BreastScreen Queensland is the third largest public breast screening programme in Australia – the contract will roll out VolparaEnterprise to 11 BreastsScreen Queensland services operating in Brisbane and elsewhere in the state. The BreastScreen Queensland services comprise 69 gantries and 43 sites that include 10 mobile units. Volpara expects the service to go live in early 2021.

The terms and conditions of the contract with BreastScreen Queensland are confidential.

Volpara CEO Dr Highnam said: “We are delighted to now have BreastScreen Queensland signing up to use our software, making it the second major public breast cancer screening programme in Australia signed up to Volpara products. This is news that will resonate around the world, and we are extremely pleased that our software will be helping women in the fight against breast cancer.”

The Volpara share price rose 4.5% today. 

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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