Deals of the week – 20 September 2021

New South Wales

CHIPPENDALE - $68.5 million

Private investment group, Intera Group have swooped on a city fringe office asset, acquiring 39-47 Regent Street, in a deal worth $68.5 million. The vendors were a private family investor from Melbourne in conjunction with IB Property’s Steffan Ippolito and Karbon Property’s Joshua Watts.

The asset was sold on a yield of 3.8% with a 10.5-year lease remaining. Located in Sydney’s burgeoning Tech Central precinct, 39-47 Regent Street is a fully refurbished B-Grade office building. The seven-storey property has a highly specialised fit-out, in a prime location adjacent to Sydney’s busiest station.

JLL’s Mitch Noonan and James Aroney handled the sale.

PARRAMATTA - $64 million

City of Parramatta Council will soon have a new administrative headquarters following the recent purchase of an office building in the heart of the growing Parramatta CBD for $64 million.

The seven-storey building, located near the $2.7 billion Parramatta Square at 9 Wentworth Street, will be home to Council’s corporate services, Customer Contact Centre, Councillor and Lord Mayor’s offices.

The building has 7,650sqm of office space, a 5.0-star NABERS Energy rating, and basement parking. Council’s administration facilities, which will be relocated from 126 Church Street in 2023, will occupy part of the building, with the remainder being leased.

BILAMBIL HEIGHTS - $13.5 million

Two low density residential sites located in Bilambil Heights, between Byron Bay and the Gold Coast, have been scooped up by Clarence Property for $13.5 million.

The 16-hectare block, situated between Stott Street and Walmsleys Road, was sold with a permit for 100 lots, ranging in size from 542sqm to 3 Ha.

Victoria

CRAIGIEBURN - $135 million

The two-year old Craigieburn Junction homemaker centre has traded from New York based PGIM to QIC for $135 million.

Located at 420-440 Craigieburn Road, the 6.05 Ha property presents 25,086sqm of NLA with a WALE of 7.29 years. Some notable tenants include Freedom, Nick Scali, Supercheap Auto, a Caltex service station and Hungry Jack’s restaurant supported with 600 car parks.

The property was sold by Stonebridge’s Justin Dowers and Philip Gartland with JLL’s Nick Willis, Sam Hatcher and Stuart Taylor.

PORT MELBOURNE - $81.6 million

An offshore investor has paid $81.6 million on what is believed to be a 3.6 per cent yield for a Melbourne industrial office and warehouse property in a structured off-market deal. The 262 Lorimer Street property was sold by a Melbourne family which purchased the property in 2014 for $31 million.

The property was sold with a commencing annual net rental of just over $3 million including fixed annual rental growth of 2.75% on a new 13 year lease extension to longstanding occupier Rathbone Wine Group.    

Positioned on a 1.69 hectare corner site (Sabre Drive) overlooking the Yarra River, the property comprises a 15,246sqm (GLA) building including a temperature-controlled warehouse/distribution facility, a four level office component, a ground level public cafe, and a multi storey carpark. The location affords quick access to the West Gate Freeway and CityLink as well as the Port of Melbourne.

The off-market deal was brokered by Dawkins Occhiuto’s Chris Jones.

MELBOURNE - $72.625 million

HThree City Australia has acquired Melbourne’s 446 Collins Street office tower for $72.625 million, marking their maiden acquisition in Australia.

Strategically located near the corner of Collins and Queen streets, in the western core of Melbourne’s CBD, the 12-storey freehold building accommodates an NLA of over 5,500sqm and features a 4-star NABERS energy rating.
 
Anchored by the newly completed Collins Arch, the rejuvenated western core provides excellent surrounding amenities such as the W Melbourne hotel, Market Street Park and quality restaurants and cafés within a short walking distance.
 
The off-market deal was brokered by CBRE’s Kiran Pillai, Scott McGlone, Mark Coster and Stuart McCann.

RESERVOIR - $28 million

The Edwardes Lake Hotel Reservoir has recently changed hands to Hotel Property Investments for $28 million, within 24 hours closure of EOI.
 
Previously known as Zagame’s Reservoir, the hotel was offered with a 60-year, triple net lease returning a commencing net annual income of $1.4 million.

The property was sold by JLL’s John Musca, Will Connolly and Stuart Taylor in conjunction with Cropley Commercial’s Steve Cropley and George Iliopulos.

RICHMOND - $8.3 million

A Melbourne based investor has paid $8.3 million for 335-341 Bridge Road, Richmond. 

The two storey, 685sqm retail building has been recently refurbished and internally subdivided to provide two self-contained tenancies which are occupied on a five year lease from October 2018 by Australia Post and on a monthly lease basis to NAB for a combined annual return of circa $285,000. 

Teska Carson’s George Takis managed the sale.

SOUTH MORANG - $6.42 million

A 13,840sqm infill site in South Morang has sold for $6.42 million through a hotly contested expression of interest process that generated over 130 registered parties and multiple offers.

The property has been purchased by a local townhouse developer who will apply for a permit for greater density on the site beyond the current 36 lot subdivision.

The deal was negotiated by Savills Australia’s Clinton Baxter, Julian Heatherich and Nick Garoni.

Queensland

WACOL - $16.1 million

An industrial investment property located in Wacol has been picked up by Westbridge Funds Management for $16.1 million.

Located at 72 Formation Street, the 1.89-hectare property is comprised of a 9,704sqm office/warehouse, with car and truck parking. The asset was sold leased to Penske Commercial Vehicles on a lease expiring in 2025, with a 10-year option.

CG Property’s Mark Gilbride and Michael Callow with CBRE’s Jack Pershouse and Peter Turnbull managed the deal.

NAMBOUR - $15.5 million

A 13.5-hectare Sunshine Coast greenfield development site has recently been sold to Ingenia, in partnership with Sun Communities, for $15.5 million.

Situated near the Big Pineapple in Nambour, the property was sold permit-ready for a 230-unit retirement village. Home construction is expected to commence in early 2023.

Simon Owen, CEO of Ingenia Communities, said he was pleased to announce the continued expansion of the Joint Venture pipeline, which has over 850 approved development sites across four projects.

Western Australia

OSBORNE PARK - $4.9 million

A fully-leased warehouse building with future development opportunities in Osborne Park has sold for $4.9 million.

Located at 33 Hector Street West, the 6,883sqm site comprises a 4,309sqm concrete building with nine separate units, each leased by small to medium commercial/industrial tenants.

The property was originally listed for auction in 2020, but the auction was cancelled due to the pandemic.

Ray White Commercial’s Brett Wilkins managed the sale.

MANDURAH - $2 million

Mandurah’s ex-Australian Sailing Museum has recently changed hands for $2 million.

ASX listed co-work office provider WOTSO Property (WOT) is the incoming owner, announcing plans to repurpose the property for occupation.

Located at 22 Ormsby Terrace, the 1,813sqm waterfront site has until recently been occupied as a church and function centre.

The asset was sold by Colliers’ Henry Vu and Tim Scott.