NEW DEVELOPMENTS, DEALS, INDUSTRY TRENDS
Deals of the week – 25 February 2019
Posted by Development Ready on Feb 25, 2019

Victoria

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MELBOURNE - $314 million
An office tower at 595 Collins Street in Melbourne’s CBD has traded hands from South Korea's National Pension Service to Hong Kong investor Foo Hang Jewellery for $314 million.

Comprised of two interconnected buildings, the 20-storey tower spans 3,778 square metres and includes three ground-floor shops and 145 basement car spaces.

The purchase is the first for the Hong Kong based investor and indicates a level of offshore interest in Melbourne and Sydney’s upcoming commercial assets. QIC Global Real Estate’s 80 Collins St development is anticipated to sell for around $1.8 billion with expressions of interest closing at the end of February.

Agents Leigh Melbourne, Nick Rathgeber and Paul Kempton of JLL brokered the deal in conjunction with Neva Courts of CBRE.

ESSENDON - $1.78 million
A retail space at 315-317 Keilor Road, Essendon, will soon become a restaurant after it was picked up by a local restaurateur for $1.78 million.

The 200sqm site currently offers a two-bedroom dwelling in the rear and two on-site parking spaces. It had been marketed with development potential for a four-storey mixed-use project, but the new owner has declared that they will pursue a commercial venture.

CVA's Anthony Carbone and Leo Mancino handled the sale.
 

New South Wales

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SINGLETON HEIGHTS - $3.95 million
A FoodWorks Shopping Centre 200km north of Sydney in Singleton Heights has sold at auction for just shy of $4 million.

The 1241sqm neighbourhood shopping centre, at 108 Blaxland Avenue, sits on a 4,105sqm landholding and is accompanied by a takeaway store, liquor store, chemist and medical centre.

Burgess Rawson sold the property at a group auction in Sydney last Thursday. The auction achieved only a 44% clearance rate but Burgess Rawson Director Simon Staddon says that this “is not necessarily indicative of the market, as the appetite for commercial property remains solid but quality is the key." 

LETHBRIDGE PARK - $3.61 million
United Petroleum have sold one of their petrol stations at 400 Luxford Road in Lethbridge Park, in Sydney’s west. UP have struck a deal with the western Sydney investor who purchased the site, to leaseback the property for the next 15 years.

The site as sold at auction by JLL's Dylan McEvoy, Nic Simarro and Stuart Taylor, reaching just over $3.6 million.
 

Queensland

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HERVEY BAY - $36 million
The Pialba Place Shopping Centre in Hervey Bay has been bought by Perth-based property group, M/Group, for $36 million. This will mark the third sub-regional retail asset acquired by the privately-owned company.

This purchase follows those of Wodonga Plaza in Victoria and Albany's Chester Pass Mall, revealing the company's strategy of buying assets with potential for upgrading and repositioning in regional towns.

M/Group managing director Lloyd Clark said "As other companies look to consolidate assets into large city shopping centres, we believe there is opportunity in the development of community hubs.

"Our point of difference is our ability to blend this with our "value add" approach that stems from our property development pedigree, which also allows us to deliver strong capital growth through the repositioning of our assets."

Situated at the gateway to Fraser Island, the 4.38-hectare site occupies an island block surrounded by three street frontages.

Previous owners Vinta Group, chose to not involve any agents as M/Group conducted all negotiations internally.

ASHGROVE - $1.925 million
A commercial building at 230 Waterworks Road in Ashgrove, 4km north-west of Brisbane, has sold for close to $2 million. The site drew significant attention with 72 enquiries being fielded by the agent before settling with a private investor.

The property encompasses 448sqm over two levels and was sold fully leased to two tenants; the state of Queensland and The Produce Wholefood Pantry.

Ray White's Michael Feltoe handled the campaign.
 

Western Australia

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CABLE BEACH - $7 million
The Broome Palm Grove Holiday Resort at 1 Murray Road, just a short walk to Cable Beach, has sold to the Royal Automobile Club of Western Australia for $7 million. The club has since renamed the property as the RAC Cable Beach Holiday Park.

Encompassing 4.18-hectares, the resort offers 25 park homes, four studio units, 156 caravan sites, a swimming pool, reception, BBQ areas and a manager's residence.

Ray White's Brett Wilkins and Phil Zoiti and Myhotel's Pauline Tew managed the sale.

WANGARA - $5.25 million
Fund manager Mair Property Funds have handled their own sale, sans agents, selling a 3,500sqm warehouse in Wangara to Medicinal cannabis company, AusCann Group Holdings for $5.25 million.

AusCann plans to use the offices and secure self-contained tilt panel warehouse for research and development; they will spend $6 million customising the site.


 

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