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Deals of the week – 11 January 2021
Posted by Commercial Ready on Jan 11, 2021

New South Wales

SYDNEY - $510 million
Charter Hall made a historic move onto one of Sydney’s most prominent corners, snatching up the David Jones' flagship Elizabeth Street store for $510 million in a sale-and-leaseback deal. The sale price reflects around $15,000 per square metre, which is around one-third the price of similar premium retail assets in the city centre.

The 12-storey Elizabeth Street building will David Jones as a tenant on a 20-year lease with five 10-year options.

SYDNEY - $95 million
Both the Hyde Park Inn on Elizabeth Street and a small office building located behind it have traded hands from RSL NSW to Sydney developer Central Element for $95 million – a 77% premium to the independent fair valuation of the two properties as of June 2020.

The deal comprised of the four-star hotel at 271 Elizabeth Street, which offers 97 rooms across 15 floors, as well as the three-level office building located at 262 Castlereagh Street.

The incoming owners intend to pursue a luxury apartment development in its place.

SEVEN HILLS - $56 million
A Bunnings warehouse in Sydney’s Seven Hills has secured a handsome payout for Rugby League club the Canberra Raiders, with Home Consortium's newly floated Daily Needs REIT picking up the asset for $56 million. The sports club paid just $29.55 million in 2011.

The Home Consortium Daily Needs REIT made the move as it looks to diversify its portfolio, which floated on the ASX in November with a $900 million portfolio of metropolitan convenience malls.

"This Bunnings asset ticks all the boxes: excellent Sydney metro location in high growth corridor, high quality tenant and the acquisition is immediately accretive to funds from operations,” Home Consortium CEO and executive chairman David Di Pilla said.

AUBURN - $21.08 million
The Western Sydney suburb of Auburn has continued to prosper with a private Asian investor purchasing a prized former Aldi site for $21.08 million.

Positioned at 6-10 Harrow Road, the property encompasses a 3,889sqm landholding with B4 Mixed-Use zoning and potential to increase the height cap from 38 to 55 metres. Aldi ceased to trade on the site on 25 November 2020. The purchaser is a private Asian investor who plans on holding the asset for five to ten years and redeveloping the property later down the track.

The asset was marketed and sold by Ray White Commercial’s Peter Vines, Victor Sheu and Joseph Assaf.

SURRY HILLS - $12.3 million
A leased office in Sydney’s inner-city Surry Hills has sold for $12.3 million.

The asset, known as Johnston’s Buildings and holding address at 252-256 Cleveland Street, presents 683sqm of NLA across two floors, mezzanine, a rooftop terrace and parking for up to eight cars. The property with a lease to Afterpay and a permit to add on a nother storey.

IB Property’s Steffan Ippolito and Dimitrios Franze managed the sale off-market.

BONDI JUNCTION - ~$9 million
A permit-ready site in Bondi Junction has traded between developers for circa $9 million.

The asset, holding address at 110-116 Bronte Road, was being marketed prior to the sale as the Metropolitan, a five-storey apartment building. The incoming owner will proceed with the approved project, which presents 20 dwellings, two shops and basement parking designed by Bureau SRH.

Metro Commercial’s Zorick Toltsan managed the deal.
 

Victoria

HAWTHORN - $17.5 million
An office building on Burwood Road in Hawthorn has recently transacted for $17.5 million.

Holding address at numbers 11 – 23, the four story plus basement asset office was sold 100% leased to NIIIM with a net rental of $962,760 per annum. The building presented 2,403sqm of net lettable space on a 1,521sqm landholding.

The property attracted significant interest, with 13 offers being received at the close of the first round. The property was subsequently sold at the end of the second-round process, with unconditional contracts of sale being exchanged on Christmas Eve.

Knight Frank’s Tim Grant, Ed Wright and Tom Ryan managed the campaign.

BRUNSWICK - $13.82 million
Lasting just four days on the market, the Bunnings and Australia Post assets on Sydney Road in Melbourne's Brunswick successfully traded at a record low yield, achieving $13.82 million. 

Located at 409-419 Sydney Road, the 3,697sqm property was sold with holding income of $396,420 per annum.

Melbourne Acquisitions' James Latos and Dominic Gibson led the campaign, which exchanged contracts prior to the official open-market launch, stating that the sale "reflects current high investor demand for well located property with income."

SPRINGVALE - $7 million
A Springvale development site has sold for $7 million to an occupier proposing an office development.

The 5,186sqm site is located 2-10 Springvale Road and 1690 Centre Road. The vendors, PE Capital had originally secured Hyatt to occupy a planned 200-key, nine-storey hotel – but this plan is no longer moving ahead.

Gross Waddell’s Michael Gross and Danny Clark sold the property in conjunction with Savills Australia’s Clinton Baxter and Jesse Radisich.

Queensland

CRESTMEAD - $70.3 million
Goodman Group have sold a yet-to-be-built industrial investment in a major distribution centre hub 32km south of Brisbane to Ascendas REIT for $70.3 million.

500 Green Road Crestmead encompasses a 6.25-hectare landholding and upon completion will present a 38,650sqm warehouse with the potential to be offered as four tenancies.

The vendors have offered a 2.5-year rental guarantee, with Goodman Property Services (subsidiary) set to finish construction by the end of 2021.

STAPYLTON - $65.52 million
A multi-tenanted industrial investment on Brisbane’s southern outskirts has changed hands from GPT Group and APN Industria REIT for $65.52 million.

Located 40 kilometres north of Surfers Paradise at 16-28 Quarry Road in Staplyton, the 8.15-hectare asset offers 40,970sqm of NLA across two buildings, with Woolworths sitting in as the anchor tenant.

The property was sold by Colliers International’s Simon Beirne and Gavin Bishop along with JLL’s Tony Iuliano and Gary Hyland.

CARRARA - $20.95 million
City of Gold Coast have secured two adjoining Carrara sites, on which it will build a water and sewage plant, for just shy of $21 million.

The 5.1-hectare parcel forms part of Gordon Corp’s City Link Industrial Estate, located six kilometres south west of Surfers Paradise.

Colliers International’s Pat Cavanagh and Marlon Crawford managed the deal.
 

Western Australia

WEST PERTH - $2.075 million
Leading Perth plastic surgeon, Guy Watts, has purchased a vacant character building with future development potential in West Perth for $2.075 million.

Located at 8 Ventnor Avenue, the asset came with 262sqm of building area on a 612sqm block. The asset had previously been owned and operated by two high-profile obstetricians for over 30 years.

The property was marketed and sold by Ray White Commercial’s Brett Wilkins.



A new drive thru Starbucks in Queensland selling at a record yield of 4.2% set the tone of commercial property agent Burgess Rawson’s final Portfolio Auction of the year in Melbourne today.
Lendlease have secured another 25% of 1 Farrer Place, a Sydney CBD landmark, from GPT Group for $584.6 million (in line with its most recent book value); a deal that demonstrates the resilience of trophy towers; Perth-based property syndicator Kerching Capital has realised $12.6 million from the sale of the Sandstone Point Village neighbourhood centre in Brisbane’s north; The Elanor Healthcare Real Estate Fund has acquired a new asset for its portfolio, this time splashing out $22.9 million for a multi-tenanted medical facility in Rockingham; plus more.
National commercial property agent Burgess Rawson is concluding 2020 with its largest Portfolio Auction campaign on 8 and 9 December.