NEW DEVELOPMENTS, DEALS
Deals of the week – 05 August 2019
Posted by Development Ready on Aug 05, 2019

Victoria

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MAIDSTONE - $25 million
Highpoint Lifestyle Centre at 98- 108 Hampstead Road in Maidstone, just 8km from the Melbourne CBD, has sold to a local family investment group for $25 million.

The new owners were attracted to the existing income stream in addition to the property’s future mixed-use potential. The Lifestyle Centre is underpinned by several ASX-listed retailers, including Baby Bunting, Supercheap Auto and Woolworths Petrol, and is situated on a prime corner site of 19,020sqm with an estimated yearly net income of approximately $1.12 million. 

Ben Parkinson and Rick Silberman of Savills handled the sale.

KILSYTH - $7 million
A 2.03-hectare industrial property in Kilsyth has just been picked up by a high-net-worth investor for $7 million.

Situated at 420-426 Mount Dandenong Road features potential for re-development, but was sold leased to long-term tenant Caprice Paper. It features offices, amenities, a factory and warehouse and sheds.

CVA's Jarrod Moran and Ian Angelico brokered the sale.

MELBOURNE - $1.825 million
Veteran real estate agent Chris Mulcahy has sold the former premises of his real estate agency Mulcahy Butera, suite 601, 488 Bourke Street, for $1.825 million in the latest sign of buyer interest in Melbourne’s CBD strata market.

The now vacant property was picked up by an owner-occupier.

“Given the current low cash rate, Melbourne’s very tight office vacancy and associated rent increases, many small to medium size business owners are electing to buy, rather than rent, which is driving the popularity of the city’s strata market,” CBRE selling agent Julian White said.

Mr White handled the sale with CBRE colleagues Alex Brierley and Chao Zhang.
 

New South Wales

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KURNELL - $36 million
Dicker Data has negotiated a sale and leaseback of their Kurnell distribution centre, selling to real estate fund manager EG for $36 million.

The IT hardware distributer will lease the 16,000sqm property, at 230 Captain Cook Drive, for two years and pay an annual rent of $2.1 million; after which EG will re-lease the property. There is some development potential and opportunity to split the asset into three separate tenancies. Dicker Data purchased the site in 2007 for $6.5 million.

Colliers International's Trent Gallagher commented, "There is a strong belief in the Sydney industrial market for rents to continue to climb in the future due to lack of industrial land supply in the Sydney market supported by key infrastructure government projects." 

Mr Gallagher sold the property off-market with Colliers International colleague Edward McFarland.
 

Queensland

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CAIRNS - $14.7 million
Melbourne based investment fund Collective Capital Investments Pty Ltd has acquired the new Energy Queensland head office in Cairns for $14.7m from local developer Terry Plos.

The state-of-the-art building is situated on a 4,044sqm site at 157-159 Bunda Street, on the fringe of the Cairns CBD. Energy Queensland has signed a 10+5+5yr lease commencing on 01 August 2019.

“We are delighted that this investment provides investors a strong income stream underpinned by long term lease to a state government entity. This, coupled with the opportunity to acquire a brand-new A grade office building, makes this acquisition a fantastic inaugural investment for Collective Capital,” Collective Capital Investments’ Mr O’Dwyer said.

CBRE’s Danny Betros negotiated the deal.

UPPER COOMERA - $8 million
United Petroleum boss Avi Silver used private entity, Topmore, to purchase a development site in Upper Coomera for $8 million. The new owner has decided to develop a service station over a section of the large 26.4-hectare vacant site.

The property was sold with development approval for a mixed-use development project, which includes medical/health care services, a bulky goods showroom, self-storage facilities, or a fast food drive-through.

Colliers International's Hunter Higgins handled the sale.

WOOLLOONGABBA - $3.12 million
A Brisbane CBD site with development approval for a total 89 apartments has for $3.12 million to a private developer.

The 1,518sqm site, at 33-37 Carl Street Woolloongabba, was originally held by an interstate fund manager. The new owner intends to build 40 one-bedroom, 47 two-bedroom and 2 three-bedroom apartments for a build-to-rent project.

Colliers International's Jason Dao and Brendan Hogan handled the sale, which they have said produced over 100 inquiries and six offers from local and interstate developers.
 

Western Australia

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ALKIMOS - $34.05 million
A neighbourhood shopping centre in Perth's north-western suburb of Alkimos has traded to a private local investor for just over $34 million.

Anchored by a Coles supermarket, which will retain a 15-year lease, Trinity Village also includes 16 separate tenants, including a Shell service station, medical centre and childcare centre.

“There continues to be high demand for neighbourhood shopping centres, due to security offered by the high percentage of income that is derived from ASX listed tenants, namely Coles and Woolworths, and the income growth from potential percentage rent and specialty tenant reviews,” CBRE’s Anthony Del Borrello said.

Mr Del Borrello sold the property with CBRE colleague Richard Cash.

HENDERSON - $1.38 million
A modern office-warehouse in the Australian Marine Complex south of Perth has sold for $1.38 million.

The property, at 50 Zedora Turn in Henderson, offers a five-year-old building on a 2,502sqm site and was constructed by its previous owner, the Kulin Group.

Colliers International selling agent, Greg O’Meara, said there had been a steady increase in owner-occupiers entering Perth’s industrial real estate market.

“Businesses that are confident about their outlook are taking advantage of low interest rates and market conditions to purchase their own industrial premises.” 
 

South Australia

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ADELAIDE - $148.3 million
Singapore-listed property trust, Suntec REIT, has snapped up the Allianz Centre in Adelaide for $148.3 million, marking their first Australian investment outside of Sydney and Melbourne. The sale is also the fifth Adelaide office tower to sell for over $100 million in close to 12-months, highlighting the growing appetite for commercial assets in this central precinct.

Situated at 55 Currie Street, the 12-storey A-grade tower was previously owned by private syndicator Arc Equity Partners (jointly owned by Chris Redmond and David Schultz), who secured it for $81 million in 2011.

 

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