Deals of the week – 26 November 2018

Posted by Development Ready on Nov 27, 2018

Victoria

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SOUTH MELBOURNE – ~$10 million
Multi-billion-dollar developer, Gurner, has announced the recent acquisition of a 1,550sqm site in South Melbourne for around $10 million.

The site, located at 77 Park Street in South Melbourne, was sold with approved permits for a 44-apartment building and 6 heritage townhouse conversions housed within a former Church that occupies the site.

Tim Gurner is advocating for high-end apartment developments stating that negative sentiment surrounding the state of the market is misleading.

“We still have 150,000 new people moving here each year, vacancy rates continue to hover around a record-low of 1.5 per cent and supply has fallen off a cliff.

“These factors indicate we are heading towards a rental crisis so I believe we will see prices jump again in the next 18 – 24 months,” he said.

The deal was brokered by Ed Wright, Stephen Kelly and James Thorpe of Knight Frank.

PRESTON - $3 million +
Industrial units at 257 and 259 Dundas Street in Preston have been sold to private buyers for a little bit over $3 million. The combined sites encompass 1,806sqm, with one building sold vacant and the other with a short-term lease.

Gross Waddell's Alex Ham and Michael Gross sold the properties at auction.
 

New South Wales

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ROCKDALE - $22 million
The home of Fitness First in the South Sydney suburb of Rockdale has been traded from Australian Unity Limited to a private local family for $22 million.

The 7,206sqm site, at 395 West Botany Street in Rockdale, retains a 3,816sqm building and space for 123 car spaces. It was also the site of the shooting of former bikie leader Mahmoud "Mick" Hawi, however the site’s infamous past has not impeded its rise in value; Australian Unity purchased the site in 2006 for $14 million.

Colliers International's Trent Gallagher, Michael Crombie and Harry Bui brokered the deal.

TRENTHAM CLIFFS - $11.5 million +
Winemaker Qualia Wines has purchased a 1,263-hectare greenfield site in Trentham Cliffs, near Mildura in the Sunraysia district of New South Wales’ south-west, for over $11.5 million.

The site will be developed into an expanse of vineyards to service wine labels such as Barramundi Spee'wah, Salisbury and Little Eden.

Mark Thornton, of Ray White Mildura, handled the sale and stated that the property drew local and international attention due to its suitability for almonds and table grapes as well as wine grapes.

PYMBLE - $5.25 million
The Graffiti Building at 23 Ryde Road, Pymble in Sydney's north, has been picked up by private developer Monarch Investments Group for $5.25 million.

The new owner has announced that they will look to build a 2,100sqm corporate office centre named ’23 On Ryde’, by the end of 2019.

The campaign was handled by Henry Bourke of Colliers International.

ULTIMO - $5.05 million
869 George Street in the inner-city Sydney suburb of Ultimo has sold, before reaching auction, for just over $5 million to a Chinese investor.

This is the first time this site has been sold in over 50 years and retains a lease to 7-Eleven for five years with options.

Savills' David Hickey, Tom Tuxworth and Nick Tuxworth managed the sale, reaching an appropriate amount above the reserve to warrant not going to auction.
 

Queensland

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NEWSTEAD - $250 million
An inner-city office tower, at 100 Skyring Terrace in Newstead, is to be sold to Growthpoint Properties Australia for $250 million.

The property sits approximately 200m from the northern banks of the Brisbane River and is fully leased to multiple ASX-listed tenants until May 2026. Having completed construction in 2014, the building is positioned within the Gasworks precinct of Newstead, which is one of five to be ear-marked for urban-renewal.

"The acquisition is a continuation of our strategy to acquire high-quality, modern assets located in prime markets with a long WALE and fixed rental increases," managing director Tim Collyer said.

CBRE's Flint Davidson, Bruce Baker and Tom Phipps handled the sale.

MOSSMAN - ~$24 million
A Woolworths-centred shopping centre in far north Queensland has been sold for an indicated $24 million to high profile sports doctor Peter Brukner.

The 1.3-hectare single-level centre, at 73-85 Front Street in Mossman, is surrounded by a 220-space carpark, with over half under cover.

The site also houses the only Woolworths north of Cairns and has development approval for future expansion of both the supermarket and additional specialty retail space. Woolworths have a lease in place until 2034.

JLL's Jacob Swan and Sam Hatcher handled the sale.

 

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