NEW DEVELOPMENTS, DEALS
Deals of the week – 9 September 2019
Posted by Development Ready on Sep 09, 2019

Victoria

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CLAYTON - $30 million
A 6,000sqm suburban corporate office building on Dandenong Road in Clayton has traded hands from AFR Rich-Listers, the Tarascio Family, to a Hong Long Investor for $30 million.

The deal is one of the largest suburban office transactions of the year, highlighting a growing demand of Hong Kong investors looking for investment opportunities in stable commercial property. Some are pointing towards the currently low Australian Dollar and the local social unrest in Hong Kong, as fuel for the increased appetite.

CBRE's Scott Orchard, Josh Rutman and Lewis Tong handled the sale.

BAYSWATER - $4.5 million
Private investors have traded a recently developed office/showroom/warehouse facility in Bayswater, in Melbourne’s east, for $4.5 million.

The 2038sq m property, situated at 865 Mountain Highway, has 30 on-site car spaces and was sold subject to a five-year lease, returning an annual rent of $256,000.

CVA's Stan Dawidowski and Ian Angelico managed the deal.

CREMORNE - $3.95 million
A vacant warehouse in Melbourne’s highly sought-after Cremorne district, has been traded between local investors for $3.95 million at auction. The 351sqm property holds address at 57-59 Stephenson Street.

Colliers International's Alex Browne, Ben Baines and Ted Dwyer handled the auction.

ARMADALE - $1.55 million
At another successful auction, a local owner-occupier has settled on a two-level retail building at 719 High Street in Armadale for $1.55 million. Also sold vacant, this is the first time the 204sqm site has been on the market in 45 years.

Morley's Tom Larwill managed the proceedings.
 

New South Wales

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SURRY HILLS - $33.5 million
The Eveleigh House in Sydney’s sought-after inner-city suburb Surry Hills, has sold for $33.5 million in a hotly contested campaign. The low-rise office building, situated at 1-9 Buckingham Street, has the potential to return $1.5 million of annual rent.

RT Health Fun, the previous owners of this freestanding, four-storey building with 12 car parks, traded the building to a Chinese investor.

Capital Markets associate director Gemma Isgro said more than 440 enquiries were received and was originally hoped to achieve a $20 million sale.

The sale price, according to marketing agency CBRE, “resets” values in Sydney’s city fringe upwards of 58 per cent.

The price values every square metre of building area at $19,770 per sqm.

Realestatesource.com.au have reported that the RT Health office sale comes five months after a five-storey building at 19 Foster Street, Surry Hills, traded for $39.5 million – or $12,500 per sqm of lettable space.

MULGRAVE - $9 million
A multi-tenanted industrial complex in Sydney’s north-west, has been purchased by a private owner-occupier with existing local investments for $9 million.

The property, at 81 Railway Road North in Mulgrave, returns an annual income of $726,447 and comprises eight factory units with a NLA of 4,825sqm, on a two-hectare site.

CBRE's Elijah Shakir, John Micallef and Matthew Alessi handled the transaction.
 

Queensland

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NOOSA - $250 million
The Noosa Civic shopping centre on the Sunshine Coast has returned to its previous owner after property developer and former Olympic swim champion, Mark Stockwell, paid near $250 million for it, in a deal with funds giant QIC. Mr Stockwell had sold the property to QIC in 2012 for about $200 million.

The 30,000sqm centre occupies more than 31 hectares of land, of which more than 20 ha is undeveloped, presenting the potential for further development of the site.

Lachlan MacGillivray and Stewart Gilchrist of Colliers International handled the transaction.

REDCLIFFE - $7.96 million
An IGA shopping centre in Brisbane's coastal suburb of Redcliffe has been traded between local private investors for close to $8 million in an off-market sale.

The property comprises a single-level convenience centre with 10 retail outlets, anchored by an 800sqm IGA supermarket.

SPRING HILL - $5 million
A tenanted strata office at 170 Leichhardt Street in Spring Hill has transacted the biggest strata sale in Brisbane of 2019, being picked up by a Sydney investor for $5 million. Current tenants Imagine Education Australia will stay on for seven years.

Colliers International's Sam Biggins and Tony Wang marketed the property in an expression of interest campaign.

“With current record low interest rates and decreasing vacancy rates in the Brisbane office sector, we are continuing to see interstate investors looking to Brisbane, attracted by the yield differential and growth prospects over the southern markets,” Mr Biggins said.
 

Western Australia

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A 986sqm Perth property with the potential to accommodate apartments or a mixed-use development has been sold for $4.23 million.

Located at 378-380 William Street in Perth, and just one block from the Northbridge entertainment area, the property was sold to a Perth-based investor with a retained lease.

The sale was handled by Colliers International’s Shane Isaacs.

“The property’s size and its location, just 645m from the CBD and close to Northbridge’s restaurants and commercial streets, generated strong interest from developers and investors,” Mr Isaacs said.

“Generous development concessions also made the property an appealing landbank acquisition.”
 

South Australia

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KINGS PARK - $8.425 million
A fully-leased healthcare investment property in Adelaide’s exclusive inner-south, has sold for $8.425 million.

The Kings Park Health complex, at 309-311 Goodwood Road in Kings Park has been in operation for about 60 years and currently returns an annual rent of $491,895.

Colliers International’s Justin Hazell sold the property in conjunction with McGees Property’s Tim Pozza.

 

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