Deals of the week – 9 November 2020

Deals of the week – 9 November 2020


November 2020
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Deals of the week – 9 November 2020

New South Wales

Search for more development sites in New South Wales here.

NORTH SYDNEY - $273 million
Dexus has traded in a North Sydney office tower to Hong Kong investor Huge Linkage for $273 million – a 3% premium on its book value as of 30 June 2020.

Located at 60 Miller Street, the 17-level tower offers 19,350sqm of office space. Dexus Chief Investment Officer, Ross Du Vernet, said the sale demonstrates a strong appetite for Australian office assets from private capital.

“We're selling assets at book value and we're buying back our stock at more than a 20 per cent discount to NTA.” Mr Du Vernet said.

Knight Frank's Tyler Talbot and Dominic Ong handled the sale off-market.

ORANGE & COOTAMUNDRA - $37.25 million
Parkstone, an Adelaide-based fund manager has scooped up to regional shopping centres in NSW for a combined $37.25 million.

Both assets were Woolworths supermarkets located in Orange and Cootamundra. Woolworths Cootamundra, located at 26 Bourke Street, includes a full-line supermarket and a BWS liquor store with more than 4,100sqm of NLA. The property was last sold for $9.4 million in 2003. Woolworths Orange, located at 197-203 Anson Street, offers 3,338sqm of NLA.

WOLLONGONG - $35 million
US private equity group Blackstone has offloaded the Bayview Centre, a smaller-sized shopping centre south of Wollongong, for $35 million as part of its strategy to sell down its Australian retail portfolio.

Queensland-based private developer Griffith Capital, picked up the retail asset, which offers 36,000sqm of land and has a GLA of 16,000sqm. The property is anchored by McDonald’s and Liquorland.

It is believed that Griffith Capital will reposition the asset, looking to redevelop the former Bunnings warehouse space as well as to make use of surplus land on the site.

JLL and Stonebridge negotiated the sale.

BALMAIN - $12.5 million
A private investor has splashed out $12.5 million for an apartment block in Sydney’s inner-west in the latest example of buyers searching for safe-haven investments.

Located at 24 Wisbeach Street, Balmain, the standalone apartment block occupies a site area of circa 1,062sqm and has a net lettable of approximately 918sqm. It includes six studios, 12 one-bedroom and six two-bedroom apartments, with 24 car spaces and additional visitor parking.

CBRE’s Matt Fenn, Nicholas Heaton and Adam Droubi sold the property at auction.
 

Queensland

Search for more development sites in Queensland here.

FORTITUDE VALLEY - $11.5 million
A corner development site in Fortitude Valley has been scooped up by Canberra-based development company Willemsen Group for $11.5 million.

Located at 458 Wickham Street, the 1,275sqm site has long been the home of the PCYC Fortitude Valley. The site was sold with development approval for a new facility for the PCYC, as well as a 12-storey office building on the subdivided subject site; Willemsen Group, however, are expected to propose a redesign for approval by Christmas.

JLL's Elliott O’Shea and Tim Jones handled the sale off-market.

EIGHT MILE PLAINS - $10.8 million
Redhill Partners, a Perth-based real estate syndicator, has also made a move in the Queensland capital, this time securing an office building from Benlee Property Trusts for $10.8 million.

Located in the Brisbane Technology Park, in Eight Mile Plains, the  3,937sqm site presents a 1,984sqm building area and was sold fully leased. Queensland Health occupies close to three-quarters of the building with the remainder leased by veterinary services company Covetrus.

Knight Frank's Blake Goddard and Matt Barker managed the deal.

BRENDALE - $5.9 million
The Moreton Bay Region suburb of Brendale has become a hotbed of owner-occupier activity in recent times as three commercial properties sold for a combined total value of $5.9 million.

The properties were marketed and sold by Ray White Commercial’s Aaron Aleckson, Andrew Doyle and Paul Anderson.

The stand-out sale of the three came at 14 Maxwell Street as the trio sold the 1,403sqm office and warehouse to owner-occupier Tara Forklifts for $2.76 million.

Elsewhere, 1/25 Kingsbury Street sold to an owner-occupier in the wholesale goods field for $1.76 million and 2/25 Kingsbury Street sold to an owner-occupier Smenco Welding Equipment for $1.38 million.

“These three sales in the New Base Estate shows that Brendale and the north Brisbane market as a whole are still in a great position,” Mr Aleckson said.

“Unit two at 25 Kingsbury and 14 Maxwell Street were sold sight unseen by the directors of the companies – with the local managers making the final decisions due to COVID-19 restrictions set in place. It was a real compliment to the design and construction of the buildings.”
 

Victoria

Search for more development sites in Victoria here.

WEST MELBOURNE - $7.1 million
A West Melbourne warehouse-converted-office, which was once the headquarters of Mushroom Music (then Reebok Australia), has recently been sold to educator Haileybury for $7.1 million, who have announced plans to expand its city campus, as reported by realestatesource.com.au.

Located at 27-31 Dudley Street, the school have also signed a nearly 100-year-long lease, two years ago, for a 1,028sqm block abutting the new site, which is home to St James Old Cathedral. This, coupled with the new site, located at 27-31 Dudley Street, gives Haileybury a development footprint of 1,641sqm. Haileybury currently owns and runs a vertical school in Kings Street, which they purchased in 2015 for $50 million.

Savills’ Clinton Baxter and Nick Peden managed the campaign.
 

South Australia

Search for more development sites in South Australia here.

ADELAIDE - $51 million
Charter Hall continues to strengthen its national commercial portfolio with the purchase of two Adelaide office buildings for $51 million from South Australian based investor, 1835 Capital.

60 Wakefield Street and 21 Divett Place, Adelaide boast a 12 year triple net lease to the SA Government, and comprise a significant 4,500sqm land holding in the core of the CBD.

Built by the South Australian Government in the late 70s and 80s, the properties were significantly upgraded and refurbished in 2001/2002 and again in 2016/2017 and provide quality accommodation for the State Government Departments who occupy both buildings.

60 Wakefield Street is a 6,900sq m six level building on a 3,200sq m site and includes a ground floor, four upper levels of office space as well as a basement car park for 35 cars. An elevated link bridge at Level 4 connects to 21 Divett Place.

21 Divett Place is a 9,600sqm 10 level building on a 1,300sqm site and includes eight levels of office space, a basement, two plant room levels and eight open car parks.

The precinct is currently home to the South Australian Department of Education and Child Development, State Administration Centre, Santos, IAG, SA Police Headquarters and Metropolitan Fire Service.

Savills Australia’s Rino Carpinelli and Ryan Mills negotiated the sale.

ADELAIDE - $40.5 million
The CBD home of radio station Nova has recently traded hands, picked up by Harmony Property Investments, a locally-based finds manager, for $40.5 million.

Located at 75 Hindmarsh Square, the six-level building offers 4,700sqm of NLA and is currently leased to Nova Entertainment, Lidums Dental and the Office of the National Rail Safety Regulator with average weighted lease expiry of 3.8 years. The asset previously sold for $21.8 million in 2007.

CBRE’s Ian Thomas handled the sale.
 

Portfolio Across States

Orange NSW, Vermont VIC, Hobart TAS - $112.8 million 
Funds management platform Centuria Capital Group has made significant moves in the private day and short-stay hospital sector, splashing out a total of $112.8 million for controlling interest in three assets; the Bloomfield Medical Centre in Orange NSW for $55.5 million, the Vermont South Medical Centre in Melbourne's outer ring for $51.7 million and a day surgery in Hobart for $5.6 million.

The assets will be added to a recently launched unlisted Centuria Healthcare Property Fund, which includes several smaller properties and will now value the fund at over $155 million.

Centuria Healthcare managing director Andrew Hemming noted that "We’ve seen strong investor appetite to capitalise on the market’s undersupply, especially given the backdrop of low interest rates and income volatility."

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