NEW DEVELOPMENTS, DEALS
Deals of the week – 13 July 2020
Posted by Development Ready on Jul 13, 2020

Victoria

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MELBOURNE - $19.5 million +
A CBD office mid-rise has transacted successfully despite the COVID-19 marketplace, drawing more than $19.5 million in an off-market deal. Located at 1 Bowen Crescent, the result provides an uplift of over $2 million in just six months of ownership.

The property sits on a substantial 624sqm site and is improved by six-levels of boutique workspace with basement car parking, providing approximately 2,361sqm NLA. The asset also benefits from being positioned 200m from the new ANZAC Train Station, which is currently in construction.

JLL’s Alex McColl and James Thorpe handled the off-market campaign.

WEST MELBOURNE - ~$7 million
A private Melbourne-based investor has snapped up an office asset in West Melbourne for close to $7 million, wrapping up a major portfolio sale and signalled ongoing confidence in Melbourne’s commercial property market.

383 Spencer Street marks the last of three neighbouring properties to be sold by CBRE on behalf of a trio of high-profile owners, taking the total sales tally to around $60 million; the combined total represents a circa $20 million uplift on the price paid for the sites in 2015.

The final asset was the smallest of the group, comprising an 80% vacant, three-level office building. The previous sales included a vacant two-level warehouse at 102-108 Jeffcott Street and a seven-storey former warehouse building at 355 Spencer Street to separate investors and developers.

CBRE’s Josh Rutman, Scott Orchard, David Minty and Scott Hawthorne managed the deal.

RAVENHALL - Undisclosed
Prominent developer Pelligra Group has snapped up a 20.8 Ha site in Ravenhall with plans to develop a major industrial project with an end value of more than $100 million.

Located at 31 Fuller Road, Pelligra is set to proceed securing pre-leases or turnkey deals on a total of 45 industrial lots. Pelligra Group Chairman, Ross Pelligra, said the site has been strategically master planned in conjunction with Melton City Council to provide sites ranging from 993sqm to 11,185sqm.

“We want to help small to medium sized businesses into their own properties to support intergenerational growth,” Mr Pelligra said.

CBRE agents Todd Grima, Tom Hayes and Harry Kalaitzis managed the deal.

CARLTON - Undisclosed 
The ground floor of a city-fringe development opportunity has settled recently, after pulling in 10 competitive offers. The Ground Floor at 570 Lygon Street in College Square, Carlton, comprises of 420sqm plus 22 car spaces.

Gill Property’s Steve Bolton, Steve Messina and Graham Hemingway handled the sale.
 

New South Wales

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YENNORA - $23.5 million
As well as buying, Pelligra has been selling, this time at 7 Kiora Crescent in Sydney’s west, which was recently traded to Singapore listed Ascendas REIT for $23.5 million.

The distribution centre forms part of a 32 Ha estate in Yennora acquired by LOGOS in 2015. Pelligra’s Larapinta Project Pty Ltd paid $8.83 million for the 2.7-hectare lot in June 2017. The 13,100 sqm facility is due for completion in the second quarter of 2021.

CBRE’s Elijah Shakir and Shaun Timbrell managed the deal.

SMITHFIELD - $3.23 million
A recently refurbished, 2,991sqm industrial facility in Smithfield in Sydney’s west has been snapped up pre-auction for $3.23 million.

A multi-national portable equipment hirer purchased the property, located at 71 Long Street, and will relocate its local headquarters from Sydney’s north-west. Formerly home to a transport firm, the site features a large concrete yard and a 1,221sqm building with warehouse and office space and an expansive awning.

CBRE’s Janet Joljian and Elijah Shakir managed the sale.

ROSEBERY – Undisclosed
A private purchaser has purchased a 250sqm office at Suite 1.05, 77 Dunning Avenue, in Rosebery in Sydney’s inner south, for an undisclosed amount.

The suite is situated within the architecturally lauded Space Building, retaining elements of the area's industrial past, while occupying the building’s best corner position overlooking The Cannery on Morley Avenue.

The deal was negotiated by Sam Wallace and Edward Washer of Savills Australia, who said the South Sydney strata office market is very tightly held and for this reason the property garnered a lot of interest.

“We managed to transact the property without the vendor having to commit a single dollar to marketing and despite being at the height of Sydney’s COVID-19 crisis” said Mr Wallace.
 

Queensland

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MORAYFIELD - $2.62 million
An investor has snapped up the freehold to the Westpac Banking Corporation building in Moreton Bay for $2.62 million.

Located at 159 Morayfield Road in Morayfield, the asset came with a 352sqm building area on a 1,082sqm landholding and adjoins the Morayfield Shopping Centre which welcomes around 6.2 million visitors every year.

The property was marketed and sold by Ray White Commercial’s Chris Massie.

NORMAN PARK - $1.11 million
A builder/developer who lives within walking distance of Norman Park beat off strong competition from 16 other registered bidders as 12-14 Moreton Street sold for $1.11 million under the hammer.

The deceased estate, that came with an 810sqm land area, sold significantly over the reserve price, with the money bequeathed to charity. The eventual winning bidder became aware of the opportunity via a letter drop organised by the agents.

The property was marketed and sold by Ray White’s Nathan Moore and Andrew Burke.
 

Western Australia

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OSBORNE PARK - $1.85 million
A local business has snapped up two joined strata units on one site for $1.85 million in the Perth suburb of Osborne Park at A and B/28 Sarich Court.

The 1,506sqm asset offers a combined 882sqm of warehouse/office space. Unit A presents a 441sqm of office/warehouse space and boasts a reception area with seven offices, kitchenette, and storage room (dark room). Unit B offers 441sqm of office/warehouse space including two offices and reception, a 50sqm mezzanine and roller door access from the front of the warehouse.

The property was marketed and sold by Ray White Commercial’s Tom Jones.



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