Deals of the Week - 18th November 2024

Victoria 

MELBOURNE - $115 million 

One of the largest Melbourne CBD development site transaction in five years has transpired, with Malaysian property giant Sime Darby purchasing 380 Queen Street following a sales campaign managed by Cushman & Wakefield's Oliver Hay, Daniel Wolman, and Leon Ma. 

Commenting on the sale, the agents noted, "CBD car parks are highly sought after, particularly by international developers, due to the potential for high-rise tower development on the underlying land. The Queen Victoria Market precinct has become one of Melbourne’s most significant urban redevelopment areas, attracting substantial interest and investment."

The property spans 3,218 sqm*, and the sale price of $115 million reflects a land rate of $35,736/sqm* and a price per car park of $209,854. 

BURNLEY - $20.5 million 

Salta has successfully offloaded a prime development site located at 173-177 Barkly Avenue. 

After initially purchasing the site in 2019, the site has an approved permit for a seven-storey commercial office building designed by award-winning architect Gray Puksand.  

The property currently comprises the iconic Rogerseller building, featuring a single-level heritage-style warehouse converted into a showroom and office space. The building boasts a total Net Lettable Area of approximately 1,685 sqm, including 23 at-grade car bays.  

The property was sold with a passing rent of $516,250 per annum, leased to Winning Appliances, trading as Rogerseller, until August next year.  

Following a sales campaign managed by Colliers' Ben Baines, Rob Joyes and Alex Browne, the asset was purchased by StorHub, a leading self-storage platform in Asia which has rapidly grown its footprint to 11 facilities in Australia. The group plans to leverage the high socio-economic location for high-density self-storage development, according to StorHub Australia CEO, Simon DeGaris.  

BAYSWATER - $17.56 million 

Up Property Group has added another highly sought-after site to its expanding property portfolio purchasing 836 Mountain Highway Bayswater from Brix Property Group for $17.56 million. 

Brix in a joint Venture with Robert Costa led Costa Asset Management to purchase the site three years ago. The Industrially zoned property was sold via an EOI campaign with an 11-year lease in place to the existing tenant Rosebank Engineering. The deal was brokered by Dawkins Occhiuto and JLL.   

This strategic investment aims to enhance Up Property's commercial and industrial holding portfolio, with plans to land-bank the site for future development.  

RICHMOND - $3.15 million 

A double-storey freestanding commercial property at 242 Bridge Road in Richmond has sold via public auction. 

Jones Real Estate's Luke Peric and Paul Jones brokered the transaction for the 566 sqm property on Richmond’s resurgent Bridge Road arterial, which has experienced a 3.5% drop in vacancies in that past 12-months, currently sitting at 7.5%. 

Sold under vacant possession, the versatile double-fronted property has modern interiors, private offices and kitchen facilities. The building sits atop flexible Commercial 1 Zone land and maintains its period facade, an increasingly sought-after attribute of properties in the area.

Queensland 

HERITAGE PARK - $29.965 million 

The Land Lease Community trend is not looking to slow with the transaction of a 27.99ha development site located at 257-341 Green Road to a Queensland-based LLC developer.  

Colliers Queensland Residential Development Sites division has teamed up with the Healthcare and Retirement Living division to transact a significant Land Lease Community site on behalf of Pointcorp.  

With a critical housing supply shortage, against a backdrop of significant immigration and population growth and low residential vacancy rates, land lease communities have become a key affordable part of the housing supply solution and demand for these sites has skyrocketed.  

Colliers Queensland Residential Development Sites Director Brendan Hogan said there was high demand for land lease communities, being driven by Australia’s aging population and baby boomers reaching retirement age and wanting to downsize.  

Colliers' Brendan Hogan, Chris O’Driscoll and Adam Rubie the large site is located within the fast-growing Logan area.  

FERNY GROVE - 19.25 million 

A Melbourne-based private investor has purchased the Coles-anchored Ferny Grove Shopping Village from Kerching Capital for $19.25 million in an off-market deal brokered by CBRE’s Michael Hedger and Joe Tynan, reflecting a 5.72% passing yield. 

Located at 51 McGinn Road, the 4,423 sqm shopping centre is anchored by Coles and includes tenants such as BWS, Domino’s, Terry White Chemist, and Jett’s Fitness, with additional space for health and food & beverage retailers. 

The property sits on a 9,098 sqm corner site, offering 200m of frontage along McGinn Road and Archdale Road, and is located between Ferny Grove State Primary and High School.