Deals of the Week - 2nd April 2024

New South Wales

SYDNEY CBD - $364 million 

Property development and management firm Mirvac has sold its half stake in a 29-storey building at 255 George Street, representing a 17% discount to the building's peak book value.  

The stake was purchased by Singapore's Keppel REIT, with the final price reflecting a yield of circa 6%. Mirvac still holds 50% ownership of the building, which forms part of their Wholesale Office Fund, which moved from AMP to Mirvac in 2022. 

WOLLONGONG - $70 million 

Billionaire Bruce Gordon has successfully offloaded his WIN Grand development site to Sydney-based development and construction firm, Level 33. 

Sold on the basis that the development would still carry out Gordon's original vision, which encompasses three residential towers, a commercial building, a mixed-use building and an entertainment precinct.  

The deal was managed by Colliers' Simon Kersten and Taleah Thomas. 

Queensland

BRISBANE CBD - $13.2 million 

Local Asian developer Capricorn Asset Management has successfully offloaded a centrally located commercial property.  

Remarkably, the sale price of the asset reflects a capital growth of 43% in three years. Located at 33 Herschel Street, the 100% occupied 911 sqm freehold site proved attractive to investors, with the successful purchaser being a local Asia-Pacific Education Operator.  

The deal was brokered by Colliers' Tony Wang and Troy Linnane, in conjunction with Cushman & Wakefield's Andrew Gard and Michael Gard. 

NORMANTON - Undisclosed 

Selectability, one of Queensland’s largest NDIS mental health providers has purchased the freehold going concern interest in the Gulfland Motel and Caravan Park. 

Located at 11 Landsborough St, Normanton, the 1.56 ha land parcel comprises 28 self-contained accommodation rooms, a caravan park with 55 sites, a four-bedroom manager’s residence, and guest facilities including the licensed Gulflander Bar & Grill Restaurant, the ‘Big Barra’ tourist attraction, and a swimming pool. Selectability plan to use the motel and caravan park for staff accommodation while operating in nearby locations. 

CBRE’s Hotels’ Hayley Manvell and Jay Beattie managed the sale, on behalf of receivers and managers, BRI Ferrier.

Victoria

BALWYN -  $13 million 

A notable consortium of investors including Gersh, James Packer and Todd Nisbet have purchased a vacant seniors living asset in Melbourne's South East. 

In a deal brokered by CBRE's Sandro Peluso, Marcello Capani-Muti and Jimmy Tat, in conjunction with NSL Property Group, the property located at 23 Maleela Avenue, Balwyn was formally known as Aveo’s Balwyn Manor.  

SOMERTON - $2.25 million 

A private investor has purchased a fully leased office/warehouse located at 30 Somerton Road. 

In a sales campaign managed by Gross Waddell ICR's Raff De Luise and Julian Materia, the highly visible showroom complex holds a rental income of over $140,000, which garnered tremendous interest from investors.

ESSENDON - $2.24 million 

An iconic former bank building turned popular local café located at 104 Fletcher Street was offloaded by a private family reflecting a yield of 3.9%.  

Purchased by a local investor, the building spans two levels and occupies a prime corner position, which currently houses the renowned Assembly Ground café. 

The sale was conducted by Gross Waddell ICR's Raff De Luise and Julian Materia. 

NEWPORT - $1.725 million

A strip retail property at 25 Mason Street was sold under the hammer reflecting a yield of 2.4%, in a deal managed by Gross Waddell ICR's Andrew Greenway and Raff De Luise. 

Situated in the heart of Newport Village, the property is surrounded by amazing lifestyle amenities including cafes, shops, Newport Train Station, and more. This popular inner-city suburb is renowned for its community vibrance and thriving retail and entertainment opportunities.  

The tenant, Cellarbrations of Newport pays a current rental of $45,600 p.a. on a short-term basis and was purchased by a local investor.