Portfolio
ESR AUSTRALIA - Circa $158.6 million
ESR Australia continues to express interest in the industrial property sector, as they have closed out their second EALP fund with the acquisition of two logistics portfolios. The first of the pair contains sites in Melbourne, Perth and Brisbane, with the collection's most notable landholding being a landmark 4.88-hectare business park in Melbourne’s Laverton North. For this portfolio, ESR paid fund manager MRS Property’s Harmony Investments $97 million, representing a blended yield of 4.9 per cent. Chris Jones of Dawkins Occhiuto was responsible for the sale.
Additionally, ESR also acquired a Brisbane-based portfolio from Direct Commercial Property that contains five assets. Three of the properties are located in Hemmant, and cover a combined 5.3-hectares, with the final two sites at Eagle Farm and Wacol. For this sale, Direct Commercial Property was represented by CBRE’s Jack Pershouse.
New South Wales
THE ROCKS – Circa $100 million
The Rydges Sydney Harbour hotel has been divested by New Landmark Hotels in a sale to Crystalbrook. The hotel, situated on a 1,825 sqm site, is comprised of 176 rooms spread across two buildings, and brings Crystalbrook’s total room count to approximately 1,500. “Our group has been seeking a Sydney flagship property to complement our growing portfolio,” explained Crystalbrook’s CEO, Geoff York. “The prime location, coupled with an ability to reposition the property to our demanding design standards, made this an ideal acquisition for us.”
The sale was negotiated by Colliers’ Gus Moors, Karen Wales, and George Hudson. “This sale represents ongoing investor confidence in the Sydney hotel market, which is showing excellent signs of recovery,” stated Mr. Moors. The property will continue to be operated by Event Hotels and Resorts under the Rydges brand for the foreseeable future, or until Crystalbrook finalises plans for revitalising the hotel.
ALEXANDRIA - $110 million
The City of Sydney has successfully transacted for The Woolstores complex in Alexandria. The site is comprised of three restored heritage-listed wool sheds that have been reinvented as creative office spaces. The council purchased the property from the specialist property fund manager RF CorVal as part of their broader investment strategy. “The income from this type of investment helps to fund the City’s services and capital works projects, easing the burden on ratepayers,” a spokesperson from the City of Sydney stated.
The transaction was conducted by Cushman & Wakefield’s Steven Kearney and Mark Hansen in conjunction with Colliers’ Michael Crombie and Adam Woodward.
PORT MACQUARIE – Circa $10 million
Hospitality and resort sales specialists ResortBrokers have managed the sale of Port Macquarie stalwart Mantra Quayside, generating a reported $10 million sum for the landholding. With waterfront and CBD views, the property contains a total of 42 units, and attracted major interest. “The Mantra Quayside provided a compelling investment opportunity on many levels and attracted strong interest from a range of industry players,” according to Northern New South Wales broker, Greg James. His colleague, ResortBrokers’ Managing Direct Trudy Crooks, affirmed this assessment, stating, “This is a big sale for Port Macquarie and is in line with other sales of record per-key rates that haven’t been seen outside the Sydney CBD.”
Victoria
COBURG - $5.09 million
One of the more prominent landmark buildings in Coburg’s major retail and commercial precinct has been sold by Gross Waddell ICR’s Alex Ham and Danny Clark for an exceptional passing yield of 1.68%. Featuring a high profile 1,193 sqm mixed commercial freehold building, the 753 sqm landholding on the corner of Sydney Road and Bell Street is zoned Activity Centre, and offers significant scale and flexibility, with the configuration boasting eight shops as well as a range of first floor offices. With high exposure frontages to both Sydney Road and Bell Street, this well-presented property drew significant interest prior to the conclusion of its Expressions of Interest campaign on the 17th of August.
PRESTON - $1.801 million
A tenanted investment site at 273 Dundas Street in Preston has sold via an auction after a marketing campaign that generated significant interest, including 69 enquiries prior to sale and 90 bids at auction. Gross Waddell ICR’s Alex Ham and Julian Materia were responsible for taking the property to the market, and the sale price they procured stands at a building rate of $3,958 per sqm, with a yield of 2.8 per cent. The 629 sqm landholding contains 455 sqm of building area and is zoned Industrial 3, whilst offering short term income of approximately $50,750 annually.
South Australia
NETLEY - $10.25 million
Property development and construction company Buildtec has unveiled plans to develop a new industrial estate after purchasing a Netley site near Adelaide Airport for $10.25 million. The 17,000 sqm site is situated in a prominent inner west industrial location at 336-346 Richmond Road, close to South Road and 6km from the Adelaide CBD. The off-market sale was brokered by CBRE’s Anthony De Palma and Jordan Kies on behalf of the vendors.
“We saw a strong level of buyer interest in this site,” explained Mr. De Palma. “The high-profile surrounding tenants such as IKEA, TNT, Australia Post and the State Opera of South Australia proves that the inner west is a sought-after location for industrial and logistic facilities and we expect significant demand for the planned estate, which will provide turnkey solutions with quick build times.”
Queensland
TENERIFFE - $28.65 million
Melbourne-based property investor Vantage Property Investments has secured an iconic near-city heritage office building in Brisbane, after a successful campaign conducted by CBRE’s Jack Morrison and Adelaide O’Brien in conjunction with Cushman & Wakefield’s Mike Walsh, Peter Court, and Frederic Le Fanue. Located in the heart of Teneriffe, one of Brisbane’s most affluent suburbs, the Willoughby and Co. Woolstores building at 130 Commercial Road offers 4,097 sqm of character office and retail space occupied by high calibre tenants, including one of Brisbane’s preeminent radio stations, NOVA 106.9. The asset was acquired from an unlisted fund managed by Centuria Capital Group subsidiary Primewest, who originally acquired the building in 2018 for just over $19 million.
“The office market has seen a shift towards quality office accommodation in key locations,” stated Vantage’s Director of Acquisitions and Investment, Paul Henley. “The Brisbane near-city Teneriffe Urban Renewal precinct is one of the most desirable areas with the riverfront suburb being amenity rich and within walking distance of the CBD. It is a location Vantage expects will continually grow and thrive in a city we believe has an extremely strong future.”
FLAGSTONE - $25.35 million
A retail centre at 8-12 Wild Mint Drive in Queensland’s Flagstone has sold to a local investor for $25.35 million, reflecting a 5.4 per cent net passing yield. The complex resides on 1.27-hectares, and is comprised of three adjoining properties that include a convenience retail centre, 7-Eleven and Red Rooster outlets, and a health precinct. Altogether, the property features a lettable area of 2,878 sqm. Representing an offshore investor, the Savills team of Peter Tyson and Michael Harcourt were responsible for brokering the deal subsequent to an Expressions of Interest sales campaign.
On the sale, Mr. Harcourt stated, “The demand for daily needs assets, especially medical based, remains strong as investors look for stable assets with income growth to withstand rising interest rates... The master planned community of Flagstone is one of the fastest growing areas in the country and assets such as these provide solid investment attributes.”
Western Australia
SUBIACO – $4.225 million
A property situated in the heart of Subiaco has sold for a sizable sum after an off-market transaction was finalised this past week. LJ Hooker Commercial Perth’s Jack Bradshaw secured $4.225 million for the vendor, Beachwalk Pty Ltd, who sold 335 Churchill Avenue to Page Performance Pty Ltd. With 695 sqm of land area and 720 sqm of building area, the property contains a notable allocation of space. It was sold half vacant to an entity which includes soon-to-be partial owner occupiers, Performance Property Advisory, who are relocating their Perth office from the CBD. Existing tenants include Ticketek, Zephyr Wealth and a new incoming tenant – FS8.
“This result indicates Subiaco’s resurgence is well and truly here as reflected by the improved land rate in excess of $6,000/sqm,” stated Mr. Bradshaw. “This type of asset is always going to be sought after with key fundamentals such as a zoning that allows various uses together with a prominent location and excellent natural light.”
