NEW DEVELOPMENTS, DEALS
Deals of the week – 16 September 2019
Posted by Development Ready on Sep 16, 2019

Victoria

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NORTHCOTE - $60 million
Two Coles supermarkets and a Kmart within Northcote Plaza, in Melbourne’s inner-north, have been picked up by private investors for a combined $60 million.

The rare, dual supermarket plaza, was built in 1980s. The smaller of the two Coles was originally a Bi-Lo supermarket that Wesfarmers purchased to prevent another supermarket chain entering the mall. It was purchased by a developer-investor, who also secured the Kmart. The new owner is believed to have plans to reposition the Kmart space, after the business vacates due to financial concerns.

Rick Silberman and Ben Parkinson from Savills Australia oversaw the sale.

The larger supermarket was purchased by a private investor, with the transaction managed by Stuart Taylor and Tom Noonan of JLL.

TARNEIT - $27.5 million
Frasers Property Australia have spent $27.5 million on a 43-hectare industrial site in Melbourne’s outer west.

Records reveal that the property, at 917 Boundary Road in Tarneit, last changed hands for $333,721 in December 2008. It was sold to Frasers after being rezoned for industrial use.

Frasers commercial and industrial manager Anthony Maugeri said, “We are replenishing our depleted stock in key markets across Melbourne where land values, rents and investment demand is increasing.

“The well-located Tarneit property further extends our reach in Melbourne’s largest industrial market, where we have held a strong market presence for over 20 years.”

DANDENONG - $14.75 million
The Victoria Carpets head office in Melbourne’s south-east has been sold to a foreign investor for $14.75 million.

It is believed that supermarket giant Kaufland, which is set to enter Australia next year, will occupy the adjoining site. Any potential redevelopment is also believed to be placed on hold until the current lease expires in six and a half years.

Situated at 7-29 Gladstone Road in Dandenong, the property comprises an 11,500sqm industrial property on a 20,500sqm site, with access to major arterial roads.

Knight Frank's Gab Pascuzzi and Scott Braithwaite managed the transaction.
 

New South Wales

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CROWS NEST - ~$60 million
An office strata block at 270-272 Pacific Highway in Crows Nest has been sold by Chinese-backed investor China Venture for close to $60 million.

China Venture spent a couple of years amalgamating the roughly 45 office strata units in the block and had plans to develop a high-rise office in its place, but those fell through. The Australian Financial Review indicated that if the development plans had been approved, the site could have sold for as much as $150 million.

Knight Frank and CBRE were involved in the sale.

SYDNEY - $1.57 million
A "hole in the wall" commercial space in Sydney’s CBD has sold for $1.57 million, presenting a near-record of $112,143 per square metre. The 14sqm property at Shop 1, 37 York Street, retains a five-year lease to Normcore Coffee and was purchased by a local private investor.Savills' Nick Lower and Selin Ince managed the sale.
 

Queensland

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BIRTINYA - $15 million
The Best Western Plus Lake Kawana Hotel on the Sunshine Coast, has traded hands from developer Triple B Motels to Gold Coast-based Centro Group of Companies for $15 million.

The 81-room hotel at 9 Florey Boulevard in Birtinya was developed by Bruce McDiamard and opened in 2015.

“We are very pleased to add a hotel of this calibre to our portfolio and are also excited to announce that there will be a rebranding of the hotel to an international brand," said Centro director and founder Michael Carr.

CBRE Hotels director Paul Fraser handled proceedings in conjunction with Ward Commercial Hotels director Peter Ward.

WACOL - $7.655 million
Clarence Property has added a multi-tenanted warehouse facility to its Westlawn Property Trust portfolio with a $7.655 million acquisition.

Taking address at 42 McRoyle Street in the Brisbane suburb of Wacol, the 1.5 hectare site offers five buildings with a total of 6,424sqm of occupied space and seven tenants.

King and Co's Richard Hall handled the sale.

VIRGINIA - $2.7 million
A vacant and newly refurbished industrial facility in Brisbane’s Virginia has sold for $2.7 million to irrigation and agricultural engineering specialists, Aquamonix.

The 4,015sqm property comprises a 2,672sqm office and showroom, with dual access crossovers, concrete apron for container set down, and onsite parking.

Colliers International's Harry Butterfield and Brian Riches handled the campaign.
 

Western Australia

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PERTH, MELBOURNE, BRISBANE, SYDNEY - $300 million
iProsperity Group (iPG) has recently settled one of the most anticipated hotels deals in Australia, with the absorbing of AccorInvest's 23-hotel portfolio for $300 million.

The portfolio comprises of predominantly freehold, economy-style hotels and offers more than 3,000 rooms nationally.

Spread across Australia’s major capital cities and regional areas, the list include notable hotels such as the 239-room Mercure Perth, the 412-room dual ibis Brisbane and Mercure Brisbane CBD hotels, the 296-room Novotel Brisbane, the 250-room ibis Melbourne Hotel and the 200-room ibis Sydney Airport.

AccorInvest remains the most dominant hotel operator in Australia after acquiring its biggest rival, Mantra Group, for $1.2 billion earlier this year.

JLL Hotels & Hospitality Group's Craig Collins and Peter Harper managed the deal.
 

South Australia

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EDINBURGH – Undisclosed
Centuria Capital Group has successfully acquired a South Australian industrial property for an undisclosed amount. This is the second recent acquisition in the state for Centuria, following the office acquisition in Adelaide’s CBD.

SA Structural, one of the largest structural steel manufacturers in Australia, sold their industrial facility (located at 40-54 Kaurna Avenue facility in Edinburgh) to Centuria with a leaseback. The facility comprises a state-of-the-art office and warehouse built 2013 with a total GLA of 13,007sqm, on a landholding of 65,210sqm over two titles.

CBRE’s Jordan Kies, Craig Klemich and Chris O’Brien handled the off-market transaction, stating that the sale demonstrated the ongoing confidence in the state. 

 

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