Eagle Property has purchased four adjacent stand-alone commercial properties in a prime Newcastle CBD location for $34.5 million as commercial property investment demand continues in regional growth areas.
With prominent tenants such as the West Group, the acquired properties include 426 King Street, 591 Hunter Street, 593 Hunter Street, and 615 Hunter Street, a combined 6500 sqm block of land suitable for a wide range of commercial development options.
Settled in December, the deal was brokered and advised by Matt Kearney of Commercial Collective in conjunction with Kenny Duncanson of CBRE.
“Eagle’s strategic acquisition was based purely on location as this site sits strategically between the Honeysuckle precinct and Marketown Shopping Centre. It is an obvious future commercial and retail precinct which will provide pedestrian links between these two key locations.”
Made up of 15 tenancies including Property NSW and Pegasus, all four properties are fully leased producing $2,100,000* of combined net annual income across the sites.
Lawrence Kopping from Eagle Funds Management has expressed their confidence in Newcastle as an attractive option for their investors due to strong growth and transformation in the region.
“Selecting prime locations in strong growth areas with multiple usage options are the core drivers of our thinking. The opportunity was oversubscribed multiple times showing not only the strength of the opportunity but also following a trend of fund managers seeking to place capital in fringe metro locations such as Newcastle.”
Current planning regulations will allow a GFA up to 35,000*sqm of commercial development across the combined sites suitable for development including office, medical, residential, and retail.
Eagle Property has purchased four adjacent stand-alone commercial properties in a prime Newcastle CBD location as commercial property investment demand continues in regional growth areas.
Situated between the Civic and West End Precinct, Mr Kearney highlights how this acquisition shows the emergence and strength of Newcastle’s West becoming the future CBD.
