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Deals of the week – 14 December 2020
Posted by Commercial Ready on Dec 14, 2020

New South Wales

Search for more development sites in New South Wales here.

NORTH SYDNEY - $212 million
Charter Hall has traded 65 Berry Street in North Sydney for $212 million following a direct offer from local fund manager Intera Group. The sale of the office tower achieved a 10% increase on its 30 June 2020 book value.

The 34-year old building offers the new owners development potential with a number of taller skyscrapers surrounding it. Currently extending 17 stories, the asset also offers 262 car parks and 14,500sqm A-grade space, with just 1.4%pc vacant.

Cushman & Wakefield’s Josh Cullen, Mark Hansen and Steve Kearney managed the sale.

EDGECLIFF & DOUBLE BAY - $38 million
Fortis is set to end the year on a high with the acquisition of two new sites in Sydney’s East. Located in Edgecliff and Double Bay respectively, the sites will go on to offer luxurious commercial and retail space in the sought-after city fringe locations. 

The Edgecliff site is located at 80-84 and 90 New South Head Road and was purchased for $24 million. It will undergo a $12 million upgrade, which will be used to refurbish the existing building and add additional levels.

The second site is located at 2 Guilfoyle Avenue in the neighbouring suburb of Double Bay and was purchased for circa $14 million. The existing building will be refurbished for $6 million and will include three floors of high-end, boutique offices along with a retail-focused ground floor.

CHATSWOOD - $4.55 million
Rohani Investments has sold a 1,200sqm childcare development site at 401 Mowbray Road, in Chatswood to a private investor for $4.55 million. The property is DA & CC Approved for a 92 childcare place site.

The hotly contest property received multiple bids at the auction, spearheaded by Knight Frank’s Anthony Pirrottina, Demi Carigliano and Arland Domingo.

MOSMAN - $4.425 million
In another successful auction result, a private family sold their 480sqm 6-apartment residential block at 16 Clifford Street in Mosman to a private investor for $4.425 million. The apartment block is fully leased equating to a gross yield of 3.4%.

The campaign received over 300 enquiries, 70 groups inspected and 8 bidders at the final Auction, conducted by Knight Frank’s Anthony Pirrottina, Demi Carigliano and Arland Domingo.

RANDWICK - $3 million +
A private investor has settled a 438sqm Randwick property to the Zin Family for just over $3 million. Located at 117 Alison Road, the site was offered for sale with an approved DA for the construction of a 16 self-contained studio apartments.

The property was sold by Knight Frank’s Anthony Pirrottina and Demi Carigliano achieving a $188,000/site rate the day prior to the scheduled auction.

STRATHFIELD - $2.6 million
Knight Frank’s Anthony Pirrottina and Demi Carigliano again secured a positive result under the hammer this time for the Seeto Family who traded their 494sqm DA Approved 41-room boarding house at 494-496 Liverpool Road in Strathfield to a private local developer for $2.6 million.
 

Victoria

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SOUTHBANK - $70 million
The Melbourne Square Shopping Centre has changed hands from OSK Group to Primewest’s Daily Needs Retail Trust (PWG) for $70 million. The site forms a part of OSK’s $2.8 billion master-planned residential-based village in Southbank.

Located on the corner of Kavanagh and Power streets, the site includes an 87 place childcare centre, 120 car parks, and a two-storey supermarket encompassing a BWS and five specialty stores.

JLL’s Stuart Taylor, Tom Noonan and Sam Hatcher managed the deal.

CAMPBELLFIELD - $13.3 million
A Centennial Industrial Logistics managed partnership has purchased a 35,719sqm industrial site in Campbellfield for just shy of $13.3 million. The acquisition takes the value of assets managed nationally under the Centennial industrial and Logistics platform to in excess of $400 million, as the group continues to execute on its niche acquisition strategy.

The property at 40 Decco Drive has low site coverage and includes a 9,361sqm, recently built generic distribution centre with expansion potential.

Previously owner-occupied, the strategic landholding was sold off-market with vacant possession and once repositioned and built out, is forecast to be valued at approximately $30 million.

CBRE’s Daniel Eramo and James Jorgensen negotiated the sale.

GLEN WAVERLEY & BERWICK - $6.346 million
A pair of medical centre investments has transacted in Victoria’s highly sought-after suburbs of Glen Waverley and Berwick for more than $6.346 million.

The Berwick establishment, the Woodleigh Waters Medical Clinic located at 137 Moondarra Drive, was sold for $5.050 million. The asset offers multiple income streams, including GP, pathology, dental and pharmacy allowing for a total passing income of $293,000.

The second property - the Kingsway Medical Clinic - situated at 5/40-42 Montclair Avenue in Glen Waverley, is occupied by long-term tenant Hippo Medical Group, in addition to Sonic Healthcare and transacted for $1.296 million.

CBRE’s Jimmy Tat, Marcello Caspani-Muto, Sandro Peluso & Josh Twelftree mamaged the deals, with Mr Tat stating that the transactions underlined the strengthening interest in healthcare as an asset class.

“Demand for both healthcare property and businesses has been strong for a number of years, however, appetite levels have climbed to new heights in 2020, with investors appreciating the essential service nature of the operation. Healthcare is one of few industries that has kept its doors open over the entirety of 2020.”

CARNEGIE - $5.3 million
A Carnegie residential development property was sold within 24 hours of closing to an offshore backed developer for $5.3 million.

Located at 1254-1258 Glen Huntly Road, the 2,017sqm site was offered to the market with an existing planning permit and stamped plans for a 6-level mixed use development comprising 59 apartments, representing $89,830 per dwelling.

Gross Waddell’s Danny Clark and Alex Ham managed the campaign, which received in excess of 95 enquiries.

WANTIRNA - $5 million
A Melbourne medical precinct in Wantirna has changed hands for $5 million – the latest in a spate of transactions in the strengthening healthcare sector.

The 1,630sqm property, which has an Urban Growth Zoning, is situated at 169-171 Stud Road. It was purchased by a Hong Kong-based investor.

The asset comprises two multi-level buildings occupied by five healthcare tenants, including physiotherapist, dentist, rehabilitation clinic, lymphoedema clinic and specialist medical group. It provides a passing income of $220,000 per annum.

CBRE’s Jimmy Tat, Sandro Peluso, Marcello Caspani-Muto and Josh Twelftree negotiated the sale on behalf of private owners.

TULLAMARINE - $1.49 million
An established freight forwarding company has purchased a 772sqm Tullamarine industrial warehouse off market from a private vendor for $1.49 million.

Located at 32-34 Butler Way, the high-clearance warehouse features a two-level office and reception area, with onsite parking and an automatic gate.

The deal was negotiated by Colliers International’s Corey Vraca and Mitch Purcell.

WEST FOOTSCRAY – Undisclosed
Cadence Property Group has purchased a value-add 2.07 Ha industrial property from a local owner occupier in West Footscray on a sale and leaseback. The acquisition marks Cadence Property Group’s fourth purchase since the beginning of the COVID-19 pandemic, in addition to the completion of Visy’s $80m distribution centre in Penrith, NSW.

The property comprises of a 7,821 sqm warehouse and office, representing a site coverage ratio of approximately 38%, and will be leased by the vendor for a period of 2.5 years.

The deal was negotiated by Colliers International’s Charlie Woodley.
 

Queensland

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CALOUNDRA - $15.3 million
A brand-new integrated Health Hub has sold on a yield of 5.39%, highlighting the strong market mandate for quality investments in the “in demand” health sector. The newly constructed Ochre Health Hub at Caloundra in the rapidly growing Sunshine Coast was presold on a 15-year lease-back to a private Sydney-based investor for $15.3 million.

The purpose-built facility comprises a 1,964sq m, two-level integrated health hub, 100% leased to Ochre Health on a long term, 15 year net lease.

Savills Australia’s Peter Tyson and Michael Harcourt handled the off-market transaction.

SPRING HILL - $2.3 million
A private investor has purchased a 620sqm office at 3/101 Wickham Terrace, Spring Hill, from a private vendor for $2.3 million.

Situated in a Core Medical Specialists precinct with 16 secure undercover car bays included in the sale, the property boasts views across the CBD.

The deal was negotiated by Savills Australia’s Gregory Woods, Daniel Pepper, Jason O’Meara and Sam Mountford.
 

Western Australia

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EAST PERTH - $4.42 million
A private investor/developer has purchased both 272 and 274 Hay Street in-one-line in East Perth for $4.42 million following a successful on-market private treaty campaign.

The 1,348sqm site with 25.59 metre Hay Street frontage has the potential to be developed to 18 levels with a neighbouring site having already received DA approval for that height.

The property was marketed and sold by Ray White Commercial’s Stephen Harrison.
 

South Australia

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OSBORNE - $48.25 million
Prime Space Projects (Defence Project Pty Ltd & Techport Development Pty Ltd) has sold Osborne’s Centre of Defence office with an adjoining tract to The Trust Company for $48.25 million.

The 8,006sqm property sits on 2.51 hectares within the Osborne Naval Shipyards precinct at 620 Mersey Road, and was sold leased to Australian Naval Infrastructure on a 10-year lease with 2 x 5-year options. The office is just 10-years old and offers considerable future development prospects, being well positioned at the epicenter of Australia’s prominent defense precinct.

Knight Frank’s Guy Bennett and Oliver Totani managed the deal with CBRE’s Ian Thomas and Alistair Laycock.



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.