Deals of the Week - 11th December 2023

Victoria

SOMERTON - $48.25 million

Property development and investment manager Cadence Property, has purchased an over 121,000 sqm industrial asset at 125-175 Patullos Lane.

Situated in an area poised for significant growth, the asset consists of a large-scale manufacturing facility leased to a single tenant on a long-term basis. The asset was purchased through Cadence Property's Cadence Australia Real Estate Partnership I, with this purchase marking their second purchase through the partnership.

SOUTH WINDSOR - $22.21 million

Isaac Property Developments has sold a premium fast food and childcare investment property, with the final sale price reflecting a yield of 4.98%. 

Located at 752 George Street, the deal was managed by Burgess Rawson’s Yosh Mendis, Darren Beehag and Geoff Sinclair. 

Mr Mendis said there was strong interest in the asset from investors across Australia, with the campaign attracting over 160 enquiries and resulting in a sale to a Sydney-based investor. 

MILDURA - $2.18 million

A purpose-built facility leased to Country Hearing Care has sold under the hammer for $2.18 million against a reserve of $1.75 million.

Located at 203 Ontario Avenue, Mildura, the property was sold through Burgess Rawson’s Matthew Wright and Rick Jacobson.  

The asset is leased on a new 10-year lease with two five-year options at a net annual rental of $108,000 with fixed 3% annual rent increases, ensuring income growth.

New South Wales

SMITHFIELD - $27 million

A fully leased Smithfield industrial warehouse has been sold to a migrating local owner-occupier for $27 million.

The 7101 sqm building at 63 Britton Street has a short-term lease and sold on an initial passing yield of 3.29%. The property has low site coverage of 38% with a total site area of 18,900 sqm and value potential with the ability to expand the existing improvements.

CBRE’s Elijah Shakir, Jason Edge and Chris O’Brien together with Collier’s Gavin Bishop and Sean Thomson brokered the deal on behalf of the institutional vendor.

GULGONG - Undisclosed

Kelly & Co Hotels has offloaded the Centennial Hotel as the group continues its strategic portfolio consolidation mandate.

Colloquially known as 'The Cenny', the hotel is situated on a prominent corner site with excellent street frontage, the venue enjoys average weekly sales exceeding $53,000 ex. GST, comprising of gaming, food and beverage and accommodation income.

The deal was brokered by JLL's Greg Jeloudev and Edward Browne, with the hotel being purchased by new hoteliers, Deb and Glen O'Brien.

 Queensland

MOUNT PLEASANT - $12.3 million

Real estate investment firm, Arcana Capital, purchased a large format retail asset 3km from the Mackay CBD.

The asset holds a GLA of 6,241 sqm and came fully leased to tenants including Clark Rubber, Reds R Us, Betta Home Living and Intersport.

CBRE's Joe Tynan, Michael Hedger and Harrison Coburn negotiated the deal on behalf of a group of high-net-worth private Melbourne-based investors.