Deals of the week – 11 May 2020

Victoria

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MELBOURNE - $72 million
A Melbourne CBD property has reached a successful settlement, transacting for $72 million. Sydney-based investment manager Realmont Property Partners represented 200 VS Pty Ltd, owned by Japanese domiciled NTT Urban Development Corporation a subsidiary of Fortune 500 company Nippon Telegraph & Telephone Corporation (NTT). 

Holding address at 200 Victoria Street, the property comprises a high quality modern A Grade office tower 67% leased to the State Government on behalf of the Environmental Protection Authority Victoria and 29% leased to Trinity College, Melbourne University’s oldest college. 

The building was completed in 2008 and is one of the most sustainable in Melbourne being just one of only three to achieve a 6.0 Star Green Star rating and 5.5 Star NABERS Energy rating. The vendor, the Australian Unity Diversified Property Fund, purchased the building from for $42.3 million in October 2014.

Trent Preece from Colliers International brokered the transaction off-market.

MELBOURNE - $62.15 million
The St Kilda Road home of Flight Centre has been sold for $62.15 million, following the firm’s announced plans to unlock equity and continue operating. The travel retailer has been hit hard by the recent pandemic.

Flight Centre paid $31.3m for the building, located at 436 St Kilda Road, Melbourne, in 2008 before undertaking a renovation. The 11-storey property is comprised of 7,506sqm of NLA on a 2,317sqm block and was sold with a pre-commitment for three quarters of the lettable office space. The purchaser is Shakespeare Property Group.

Paul Burns from Fitzroys Property managed the off-market campaign.

SORRENTO - $14.5 million
Sorrento’s Continental Hotel’s continues its long redevelopment story with the recent changing of hands from Melbourne developer Stellar to Trennery Property for a reported $14.5 million.

The Ocean Beach Rd property went back up for sale in March, following the end its previous contract of sale which resulted from complex issues with its $100 million redevelopment plan. The property sits on a 4,482sqm land holding across two certificates of title.

Colliers International agents Guy Wells and Trent Hobart brokered the new deal.

EMERALD HILL/SOUTH MELBOURNE - $2.94 million
One of South Melbourne’s historic Emerald Hill Terraces on Clarendon Street has changed hands for $2.94 million.

The 203sqm landholding, situated at 336 Clarendon Street, consists of a ground-floor retail space leased to the Red Cross and a first-floor apartment. It is one of 15 Victorian era shops in the strip, on the west side of Clarendon Street between Bank and Park Streets, that date back to the 1880s and were progressively subdivided for individual sale from 2016.

The vendor had purchased the property in late-2018 for $2.63 million, representing a $310,000 uplift in value in an 18-month period.

Rorey James, Nic Hage and JJ Heng from CBRE managed the off-market campaign.

SOUTH MELBOURNE - $2 million +
The Balazo family has achieved a record price of more than $2 million from the sale of a mixed-use South Melbourne building which once housed their popular Baked in South Melbourne pizzeria.

A local investor has snapped up the 170 York Street property in a deal which highlights ongoing buyer demand for well-leased Melbourne commercial assets in the face of COVID-19. The 112sqm corner site features a fully leased, three-level building offering 301sqm of office and retail space. The one-time ground floor pizzeria is now occupied by the Spit Roast Catering Company.

CBRE’s Dylan Kilner, David Minty and Chao Zhang managed the transaction.
 

Queensland

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YEERONGPILLY - $35.25 million
After a fourteen month long listing period, the City of Brisbane Investment Corporation has reached an agreeable settlement for its South Regional Business Centre in Yeerongpilly, trading for $35.25 million.

The green commercial building was completed seven years ago and was picked up Ascot Capital. Located at 665-681 Fairfield Road, the asset was purpose built for the council, and encompasses 4,198sqm of A-graded office area over three floors, across a total landholding of 3,600sqm.

The campaign was handled by Cushman & Wakefield’s Mike Walsh, Peter Court and Nick Spiro with Savills Australia’s Greg Woods and Peter Chapple.

BANYO - $11.5 million
A modern office warehouse around 13kms north of Brisbane’s CBD has sold successfully in spite of the current business environment.

Located at 25 Buchanan Road, Banyo, the site sold for $11.5 million and retains a lease to Ergon Energy, who have occupied the space since 2008. The two storey, 5,156sqm complex presents a high-bay warehouse on a 1.4 hectare site with 54 car parks.

CBRE’s Dan Munnich and Edward Bull with Cushman & Wakefield’s Michael Callow and Bevan Galloway handled the transaction.

RICHLANDS - $3.15 million
A private Gold Coast-based development group has snapped up an approved townhouse development site for $3.15 million at 340 Freeman Road in Richlands.

The mortgagee in possession property, that comprised of 1.57 Ha of land, held development approval for 70 townhouses over four stages, comprising 60 three-bedroom, and 10 four-bedroom properties.

The site was marketed and sold by Ray White’s Mark Creevey, Tony Williams and Matthew Fritzsche who received 60 enquiries and seven offers during the campaign.

BRENDALE - $2.05 million
A local developer has purchased an 8,367sqm vacant block of land in Brendale (around 20km north of Brisbane) from a private company for $2.05 million.

Located at 8 Cutler Court, the benched and serviced land zoned ready for construction is in the New Base Industrial Estate. The sellers had originally intended on building their new facility on the site, but they have recently elected to relocate elsewhere.

The deal was negotiated by Shaw Harrison of Savills Australia.
 

Western Australia

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MIRRABOOKA - $8.9 million
A Centrelink office in Mirrabooka, approximately12km north of the Perth CBD, has traded for $8.9 million.

Situated at 24 Chesterfield Road, the 3,696sqm building is predominantly occupied by Centrelink, who continue on a six-year lease due to expire in late 2024 - 8% currently remains vacant.

Colliers International’s Wayne Lawrence and Tory Packer managed the off-market campaign.

Note: While NSW and SA experienced little significant actiivity over the past week, the other states remained strong and active!