Deals of the week – 2 August 2021

National

HOTEL PORTFOLIO - $620 million

A portfolio of 11 Travelodge hotels has been picked up by a joint venture involving Salter Brothers, Singaporean sovereign wealth fund GIC, and leading private markets investment firm Partners Group, for $620 million. The vendors were Mirvac and NRMA.

Located across Sydney, Melbourne, Brisbane, Perth and Newcastle, the portfolio includes approximately 2,032 midscale hotel rooms under the Travelodge brand. There is potential that the hotels will come under a new brand once settlement has been reached.

SERVICE STATION PORTFOLIO - $113.9 million

A portfolio of 31 service stations has traded hands from Waypoint REIT (WPR) to Fawkner Property trusts for a total of $113.9 million. The final total sits at 10.1% above the December 2020 book values.

21 of the asset are located in regional locations, with the stations spread across all mainland states.

New South Wales

SYDNEY - $575 million

A partnership between Mirvac and M&G Real Estate has helped secure 50% of Sydney’s EY Centre from AMP for $575 million; the highest office deal of the year so far. The price hits an 11% premium to its 30 June 2021 book value.

The building rises 33 storeys and offers 38,650sqm of NLA, with Mirvac and AGL Energy both tenants.

HORSLEY PARK - $124 million

NextDC has recently scooped up a 12.4-hectare parcel in Sydney’s west for $124 million, which it will use to develop a data centre.

The Horsley Park property will make way for a 300MW capacity facility, intending to service Hyperscale Cloud Providers, and will feature offices and collaboration spaces.

CBRE’s Cameron Grier and Jason Edge managed the sale on behalf of the vendor, CSR.

CHATSWOOD - $56 million

A B-grade office building in Chatswood has recently changed ownership, moving from Linfield Developments to a local investor for $56 million.

Located at 815 Pacific Highway the 13-storey building offers 6,765sqm of NLA and was sold 94% occupied with a two-year WALE.

BATHURST - $11.187 million

A Dan Murphy in Bathurst has traded hands for $11.187 million. Holding address at 57 George Street, the 1,282sqm building sits on a total site area of 3,952sqm.

The asset was sold by Savills Australia’s Steven Lerche and Andrew Palmer.

NEWCASTLE – Undisclosed

The Grand Hotel in Newcastle has recently transacted, trading from long-term owner Mike Angus to a local investor.

The pub, which is positioned on the east end of Newcastle around 200m from the beach, offers 17 recently renovated and ensuited accommodation rooms, 6 GMEs, under-utilised 3am trading approval and distinct food and beverage trading options.

JLL’s Ben McDonald and Kate MacDonald managed the deal in conjunction with Moore & Moore’s Deane Moore.

Victoria

GISBORNE - $100 million

A 266 hectare parcel in Gisborne has recently been snapped up by ID Land for $100 million.

Located at 189 Ross Watt Road, the site will allow for 700 dwellings on the 85.91-hectare Lot A, with the remaining two-thirds set to be utilised for rural conservation.

Biggin & Scott Land’s Frank Nagle, Andrew Egan and Callum Williamson managed the deal.

PUB PORTFOLIO - $99 million

The Zagame Group has divested from four Victorian hotel leaseholds, securing $99 million from IPR Hotels for the portfolio.

The list includes assets in Berwick, Reservoir, Boronia and Ballarat, each costing $41 million, $22 million, $19 million, and $17 million respectively. All properties are branded Zagame’s but will be renamed.

MULGRAVE - $30.08 million

NZ operator Ryman Healthcare has secured a development site in Mulgrave, opposite Mirvac’s master-planned Waverley Park, for $30.8 million.

The 4.7 hectare property, located at 62-94 Jacksons Road, is set to make way for more than 80 villa units, 110 independent and serviced apartments and a 60-bed aged care complex. The site was sold with a permit for 216 units, a 128-bed home and an integrated medical centre across four buildings.

Colliers’ Shalain Singh, Hamish Burgess, Joe Kairouz and Chris O’Driscoll managed the transaction.

MELBOURNE - $25 million

175 Flinders Lane has traded hands from Helen Sykes to a local private investor group in a deal worth $25 million. The vendor originally paid $9.8 million for the building in 2014.

The building offers eight floors, each of which are strata titled, with the sleek Japanese restaurant Kisumé taking up the lower three levels.

The deal was managed by Colliers’ Daniel Wolman, Oliver Hay and Leon Ma with Killen Thomas’ John Camilleri.

TRUGANINA - $2.9 million

An off the plan land site (Unit 1, 48 National Drive) in Truganina has sold for $2.9 million, representing a building rate of $1,798 per square metre.

The vendor was also the developer, with a local investor taking over ownership. Spanning 2,400sqm there are two remaining lots available - construction is scheduled to commence shortly and due for completion in 2022. Each warehouse will comprise a total building area of 1,613sqm inclusive of a clear span warehouse with dual level offices, dual container height roller doors, private driveway, security gates and 26 on-site car spaces. 

CVA’s Leo Mancino managed the deal.

Queensland

SOUTHPORT - $80 million

The unbuilt Proxima building in Southport has recently changed hands, from Evans Long to Home Consortium (HomeCo) thanks to a funds-through deal worth $80 million.

The eight-level building, located at 16 Nexus Way, was sold 60% leased to Queensland Health, Griffith University and Sanctuary Early Learning

Proxima marks the first essential services investment asset situated in Lumina (the Gold Coast’s Health & Knowledge Precinct), which is replacing the ex-Commonwealth Games Athletes Village.

CBRE’s Michael Hedger, Joe Tynan, Mark Witheriff and Peter Chapple managed the deal.

Western Australia

PERTH - $339 million

Dexus is set to pick up a 49% share of Woodside Energy’s Perth headquarters, following a deal with Malaysia’s AAIG worth $339 million.

The office building, located at 98 Mounts Bay Road, is one of three towers that make up Capital Square. Capital Square 1, as the building is referred to, offers an NLA of 60,635sqm across 32 storeys.

WELSHPOOL - $23.3 million

Arrow Capital Partners has snapped up a multi tenanted industrial estate in the heart of the Welshpool industrial area from APIL Group for $23.3 million with a 2.43 year WALE.

Located at 59-87 Pilbara Street, Welshpool, the 19,090sqm estate sits on a 3.1 Ha corner site and is set on one of Perth’s most high-profile corner locations, on the corner of Orrong Road and Pilbara Street. The estate was developed between the 1970’s and 2000 and provides a multi-tenanted estate with repositioning opportunities. Major tenants include GPC, Forest One, All Pet, DIAB Engineering and Scania.

The off-market transaction was brokered by Savills Australia’s Matthew Hopkins, Michael Wall and Michael Fenton.

Australia Capital Territory

PHILLIP - $83 million

Canberra’s Scarborough House has traded hands, moving from Centuria to Sentinel for $83 million. The vendors originally purchased the asset in 2016 for $72.3 million.

Located at 8 Atlantic Street, the 14-level A-grade office offers 16,755sqm of NLA and was sold fully occupied, with the Department of Health taking up 99% of the space. The Weighted Average Lease Expiry by income is 4.1 years.

The sale was overseen by Colliers’ Paul Powderly and Matthew Winter in conjunction with JLL’s Tim Mutton and Luke Billiau.