During 2017, acquisition activity in the A-REIT sector largely has been from offshore buyers, with local Australian investors often finding it difficult to compete and make value-accretive acquisitions to existing portfolios. A few notable exceptions are growth-focused managers, such as Centuria Capital Group and 360 Capital Group, which have continued to look for opportunities throughout the year.

The A-REIT sector has only recently recovered from four quarters of negative returns, delivering a total return of 1.7 percent for third quarter 2017. The prior negative performance of the sector has meant prices have reached levels that make A-REITs appear attractive again in terms of value and yield.

The two main A-REIT acquisitions in 2017 totalled A$930 million (US$714 million). In July 2017, Generation Healthcare REIT was acquired by NorthWest Healthcare Properties REIT for A$435 million (US$334 million), whilst Astro Japan Property Group was acquired by Blackstone for