Deals of the week – 24 May 2021


Deals of the week – 24 May 2021

National

 

OFFICE PORTFOLIO - $780 million

Charter Hall have entered into a 50/50 joint venture with CLW to secure an office and industrial investment portfolio worth $780 million.

 

The Portfolio comprises four assets with a total NLA of 69,503sqm, including; the Services Australia building in Tuggeranong (ACT) for $306 million; the ATO building in Box Hill (VIC) for $230 million; the Australian Red Cross Building in Alexandria, (NSW) for $159 million; and the ATO Building in Albury (NSW) for $85 million.

 

The Portfolio is characterised by long leases to Commonwealth Government and Government supported tenants with an average WALE of 9.1 years.

 

This acquisition grows the Charter Hall office portfolio to beyond $23 billion which is secured by a 30% exposure to government and government related tenants.

 

RETIREMENT LIVING PORTFOLIO - $65 million

Greengate have recently sold three aged care and retirement living assets to Australian Unity for $65 million.

 

The agreement includes two assets in New South Wales (Kogarah and Maroubra), one in Queensland (Wolloongabba), and an additional block of land in Auchenflower (QLD) which is permitted to make way for a fourth retirement project.

 

In total the three operational assets provide 253 independent living units and 225 residential aged care beds.


 

New South Wales

 

CHIPPENDALE - $150 million

The Schwartz Family Company is divesting its Four Points by Sheraton Sydney, Central Park Hotel, with North American private equity firm KSL CAPITAL Partners securing the asset in a deal speculated to be worth near $150 million.

 

Located at 88 Broadway in Chippendale, the Four Points hotel only recently opened its doors in late 2018 and forms part of the Central Park mixed use development. It features 297 guest rooms, including 45 suites, together with a bar, restaurant, fitness centre, 50 dedicated car spaces and 551sqm of meeting space.

 

The asset also holds several Development Approvals, which will allow the new owners to add 11 extra guest rooms, enclose an outdoor terrace, and construct a distillery.

 

JLL’s Mark Durran managed the deal.

 

BYRON BAY - $120 million

The Mercato shopping centre in Byron Bay has traded hands, moving from partner owners Wingate and Azzura to a family fund headed by the Mustaca family and the Pelligra family for near $120 million. The deal marks one of the largest commercial deals ever for the region.

 

The sale of the mall, which is anchored by a Woolworths and Palace Cinemas, also included a neighbouring 1.1 Ha development site.

 

JLL’s Nick Willis, Jacob Swan and Sam Hatcher managed the deal.

 

CROWS NEST - $32.25 million

The former Warner Music building in Sydney’s Crows Nest has traded from Sun Property to private investor JH Melrose for $32.25 million. The vendors originally purchased the asset in early 2017 for $22 million.

 

Located at 39-47 Albany Street, the property covers 1,609sqm of land and presents a three-storey office building of 3,286sqm with 43 car parks.

 

CBRE’s Jason Lowry, Toby Silk, Nicholas Heaton and Tao Shi brokered the deal.

 

LEICHARDT - $24 million

Merivale have secured Norton’s Irish Pub in Leichhardt in the city’s inner west for close to $24 million. The sale is one of two pub purchasers for the hospitality group in less than one month, with the recent acquisition of the Lorne Hotel in Victoria (more below) for $38 million.

 

Merivale already owns several pubs in Sydney’s inner west, The Vic on the Park in Marrickville, the Queens Hotel in Enmore and the 3 Weeds Hotel in Rozelle.

 

Pub sales have been notably strong this financial year, with more than $1.3 billion expected to be recorded by June 30.

 

The deal was negotiated by JLL’s John Musca and Ben McDonald.

 

 

Victoria

 

LORNE - $38 million

Merivale have had a busy month with the recent signing over of the landmark Lorne Hotel from the Upham family for $38 million.

 

The hotel was originally built back in 1876 and was reconstructed in 1920 following devastating fires. It has since undergone numerous renovations and extensions and currently features a large restaurant, bistro & bar, 120-person function room, and accommodation. Its renowned beer garden boasts views across the ocean and Lorne’s main beach.

 

Two of Melbourne’s top restaurant brands, MoVida and Coda, occupy restaurant spaces within the venue.

 

JLL’s John Musca and Will Connolly managed the deal.

 

CREMORNE - $26.9 million

Fortis has acquired a new site in Cremorne for $26.9 million. 

 

Located at 65 - 81 Dover Street, the 1,850sqm site will offer premium commercial and retail space in the sought-after city-fringe location. The site was originally acquired by Tope Lane in late 2019 with the amalgamation of seven separate parcels of land. Tope Lane obtained planning approval in late 2020 before strategically divesting the site. 

 

Offering 9,250sqm of NLA, a $40 million new build at the site will comprise eight storeys of commercial space, complemented by a retail offering on the ground floor. Construction is anticipated to commence later this year.

 

The transaction was negotiated by Ben Baines, Ted Dwyer and Peter Bremner of Colliers.

 

ESSENDON - Undisclosed

A small Essendon retirement village has traded from the Lions Club of Essendon to New Zealand operator Ryman Healthcare for an undisclosed amount.

 

The incoming owners have announced plans to pursue a vertical village development, estimated to have an end value of about $165 million. The asset currently presents dwellings and a hostel which the former owners used for aged care accommodation.

 

Ryman have completed five healthcare facilities in Victoria since 2014 and hold plans for a further six.

 

 

Queensland

 

MORAYFIELD - $28.85 million

Independent property fund manager Argus Property Partners has expanded its South East Queensland portfolio with the $28.85 million acquisition of HomeCo Morayfield.

 

Situated 44km north of the Brisbane CBD in the fast-growing Moreton Bay region, the 11,216sqm prominent homemaker centre features a strong offer of key destination tenants, namely Nick Scali, Amart Furniture, Sydney Tools, Early Settler and Choice. The asset was sold on behalf of Home Consortium following a selective off market sales process. Strong buyer interest and demand resulted in a fully leased sale yield of 6.93% and a strong 5% premium to the Home Consortium December 2020 book valuation.

 

CBRE’s James Douglas, Joe Tynan and Michael Hedger negotiated the sale.


INDUSTRIAL PORTFOLIO - $30 million

GARDA Property Group has recently secured three Brisbane industrial sites for near $30 million.

 

The biggest deal involves a 32.38 Ha property at 109-135 Boundary Road in North Lakes, which was secured for $16 million and offers about 22.4 Ha of land ready for development. GARDA intend to create a master-planned business industrial park in its place.

 

The second deal includes a 4.125 Ha parcel at 405 Progress Road in Wacol South, which the property group picked up for $7.2 million. GARDA have plans for a 17,000sqm estate.

 

The third acquisition was 56-72 Bandara Street in Richlands, where GARDA will spend $6.8 million for a 3.035 Ha landholding. The development-ready site is earmarked for around 13,000 sqm of product.

 

JLL’s Gary Hyland and Nick Bandiera managed the deals.

 

 

Western Australia

 

MIDLAND - $7.25 million

Perth-based property funds management company, Quadrant Investments, has established its new QI Diversified Income Trust No 1, facilitating the acquisition of a prominent two-level office building in the core of the Midland CBD for $7.25 million.
 
2 Keane Street sits approximately 17km north east of the Perth CBD and features a modern two-storey office building with a net lettable area of 1,367sqm, as well as a secure basement car park for up to 33 vehicles, plus end of trip facilities and bike parking.
 
The property was hotly contested with more than 115 enquiries thanks in large part to its long-lease to the “AA+” rated WA State Government.

 

Savills Australia’s Barney Dear facilitated the deal.


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