Deals of the week – 03 December 2018

Posted by Development Ready on Dec 04, 2018

Victoria

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MELBOURNE - $37.1 million
The Victorian State Liberal Party have sold their Exhibition St Headquarters in Melbourne’s CBD for $37.1 million to an undisclosed luxury brand.

The sale price reached for the building at 104 Exhibition Street was markedly more than anticipated.

“With an expected price of over $30m, the campaign saw over 110 genuine inquiries and received 10 strong and reputable bids. The demand for this asset shows us the true strength in the Melbourne property market with aggressive offers coming from local private investors, offshore investors and listed institutions,” Selling agent Daniel Wolman said.

Mr Wolman managed the sales campaign with Colliers International colleagues Matt Stagg and Oliver Hay.

GREENSBOROUGH - $7.26 million
An early learning centre belonging to St Helena, in Melbourne’s north-east suburb Greensborough, has sold for a little over $7 million.

The property at 189 St Helena Road provides for 120 children and was sold with a new 15-year lease with options.

Fitzroys' Chris Kombi and Terence Yeh and CBRE's Sandro Peluso and Jimmy Tat managed the sale.
           

New South Wales

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WARRIEWOOD - $7 million
A private Sydney investor has snapped up the MindChamps Childcare Centre in Warriewood for $7 million. The property was sold with a 10-year lease to MindChamps and generates $400,852 in net annual income.

The centre accommodates 90 children within the two-storey building.

CBRE's Toby Silk, Aaron Arias and Nicholas Heaton handled the expression of interest campaign.

JAMISONTOWN - $2.37 million
A warehouse in Sydney’s western suburb of Jamisontown, in the city of Penrith, has been sold for $2.37 million demonstrating a demand for functional and multi-use assets. 

The property at 25-27 Abel Street expands over 2,596sqm and was sold with approval to operate as an automotive workshop, while the large rear yard has DA approval to construct another 496sqm warehouse.

“This transaction highlights sturdy competition between investors and owner-occupiers seeking assets that present significant future development upside potential,” selling agent Leigh Burges commented.

The site was sold at auction, with the campaign managed by Mr Burges and Peter Steinhour, both from Savills Industrial. 
 

Queensland

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CALOUNDRA, QLD & BATHURST, NSW - $113.1 million
Property Group Stockland has sold two of their regional shopping malls for a combined $113.1 million. The properties were sold with a combined 5.3% discount to their book value indicating a slowing down in regional commercial property.

"The divestments of Stockland Bathurst and Stockland South (Caloundra) align with our strategy to release capital for reinvestment and reshape the commercial property portfolio," Stockland managing director Mark Steinert said.

"These asset sales take the total value of our commercial property divestments to $448 million over the past 15 months,"

A Moelis Australia Fund picked up Stockland Bathurst, which covers 19,446sqm and is anchored by Target, Big W and Woolworths, plus 41 speciality stores. While a different investment group secured the smaller Caloundra based mall.

MURRARIE - $7.25 million
A Murarrie industrial facility has been snapped up by an offshore family office looking to capitalise on the lack of available cold storage facilities in Brisbane.

The site, at 69 Alexander Place, was sold with a short-term lease to Metcash (Feb-2019) and currently returns a net annual income of $721,000.

The new owner intends to refurbish and re-lease the property, which has a total building area of 3,372sqm, including 2,678sqm of chiller, freezer and dry storage space. 

“The purchaser owns multiple cold storage facilities and have a significant interest in acquiring additional, high yielding assets,” Selling agent Ben Lyons of CBRE commented.

“There are very few medium-sized industrial properties coming to the market in the TradeCoast precinct, which is why this particular site was so appealing. There is also a significant shortage of cold storage facilities for lease and we are currently experiencing interests from multiple groups who are in search of chiller, freezer and dry storage space.”

 

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