NEW DEVELOPMENTS, DEALS
Deals of the week – 25 May 2020
Posted by Development Ready on May 25, 2020

Victoria

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YARRAVILLE - $4.577 million
A two-storey office building in Yarraville has traded to an interstate investor for $4.577 million.

Located within Yarraville’s industrial centre at 4 Cawley Road, the standalone commercial building offers 1,642sqm of NLA on a 4,454sqm corner site. The property is leased to the West Gate Tunnel Project.

Knight Frank’s Tom Ryan, Tim Grant and Scott Braithwaite negotiated the deal.

ELSTERNWICK - $2.5 million +
A shop on Glen Huntly Road in Elsternwick has changed hands for more than $2.5 million, amid an increase in demand for space in Melbourne’s suburban strip retail market.

Currently occupied by longstanding massage parlour, Thai Soul Massage & Spa, 324 Glen Huntly Road was purchased by a local buyer. The sale of the 210sqm property follows similar transactions on South Melbourne’s Clarendon Street (for $2.94 million) and York Street ($2.05 million), as well as Victoria Avenue in Albert Park ($1.82 million). 

CBRE’s Rorey James noted “there has been a noticeable increase in enquiry from retailers for open-air spaces”.

“This latest sale in Elsternwick is one of the strongest we’ve seen in the Melbourne market this year, and highlights the demand for strip retail properties,” Mr James said.

FRANKSTON - Undisclosed
National property investment group, Collective Capital, has snapped up one of the most significant office buildings in Melbourne’s south-eastern bayside with the off-market purchase of a Frankston property valued at circa $20 million.

Located at 454-472 Nepean Highway, the property comprises a five level, 6,254sqm building with ground floor retail on a 2,501sqm landholding with three street frontages and parking for 142 cars. The largely government tenanted building was sold 78% leased with a net passing annual income of nearly $1.24 million.

CBRE’s Mark Wizel, Josh Rutman and Scott Orchard handled the sale.

“This was an astute purchase which delivered a very satisfying level of income security at a time when income security is at a premium across all types of investment classes.

“Interest in this and other so-called defensive income properties, especially nondiscretionary retail, has risen markedly in recent times and will continue to escalate whilst uncertainty remains,’’ Mr Wizel said.
 

New South Wales

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SYDNEY - $12 million
A full-floor strata office in the historic Company Director House in Sydney’s CBD has sold for $12 million. The vendor, travel company Excite Holidays, paid just $4.175 million for the asset in early 2016. The sale represents the biggest Sydney CBD strata office transaction since 2018.

Holding address at level 4/71 York Street, the property comprises of 692sqm of NLA. There are 13 strata suites in total across the five-storey building.

Colliers International Trent Gallagher and Tom O’Neill managed the sale.

CRONULLA - $11.1 million
A development ready property near the beach in Cronulla has sold for $11.1 million.

Located at 3-5 Parramatta Street, the 1,530sqm property is currently comprised of two double-storey apartment blocks and holds a an approved DA for a five level residential complex. Designs allow for 25 units, mostly configured as a mix with two and three bedrooms.

Eight offers were received by selling agents Demi Carigliano, Anthony Pirrottina and Scott Timbrell of Knight Frank.

ST IVES CHASE - $1.88 million
A family home in St Ives Chase, on Sydney’s North Shore, has sold in just six days to a local St Ives family for $1.88 million – well above the owner’s expectations.

The property, located at 101 Warrimoo Avenue, presents a four bedroom, two bathroom single level family home on 930sqm.

Chris Orr of Savills Australia sold the property and advised “There is pent up demand for quality property in Sydney’s North Shore. With 62 inspections over a six day period and a result 12% higher than the client’s expectations, it certainly feels like we’re at the start of another bull market.”
 

Queensland

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UNDERWOOD - $26 million
Australia Post has recently sold a distribution centre in Brisbane’s Underwood to Vic Investments Management Group for $26 million.

The warehouse, located at 1677 Beenleigh Road, was originally listed early last year with a six month leaseback. VIMG has announced plans to replace the 9.7 hectare property with a mix of residential and commercial stock. They are currently inviting registrations of interest for the project.

Colliers International’s Simon Beirne, Brendan Hogan and Anthony White handled the sale.

PENRITH - $17.25 million
A Penrith manufacturing plant belonging to Visy has been offloaded for $17.25 million with a leaseback. Sydney based private investor Sandran Property Group are overtaking ownership.

The 4.2-hectare site, situated at 126 Andrews Road, comprises an 8,956sqm office/factory which covers just one fifth of the site. It will return an annual rent of $1 million, with Visy also offering to remain as tenants until 2027, with options.

Colliers International’s Gavin Bishop and Sean Thomson handled the sale in conjunction with JLL’s Tony Iuliano and Roger Miller.

TEWANTIN - $1.025 million
An interstate investor has snapped up the freehold of the long-standing Tewantin Market Garden on the Sunshine Coast for $1.025 million at Shop 2/93 Poinciana Avenue.

The asset, that was completed in 2016 and formed part of the ‘Tewantin Place’ strata complex, offered a 142sqm building area and was sold fully leased.

Ray White Commercial’s David Brinkley and Tracey Ryan handled the sale.
 

Western Australia

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WEST PERTH - $10.6 million
Mair Property Funds has secured a suburban office in West Perth for $10.6 million. Located at 1162 Hay Street, the sale follows another suburban office pick-up by MPF, this time in Mulgrave in Victoria for $13.9 million.

The West Perth asset represents an A-grade commercial property, sold with lease to EBM (Elkington Bishop Molineaux) Insurance Brokers. The 1,863sqm landholding offers 1,423sqm of NLA and has an open-air car park. MPF have announced plans to redevelop the site.

Transact Capital’s Alex Gismondi handled the deal.



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