Deals of the Week - 24th February 2025

New South Wales

VILLAWOOD - $330 million

Brookfield Asset Management has entered into an agreement to sell its newly completed Connect Central Sydney Logistics Estate at Villawood, Sydney.

The estate, located at 2 Christina Road, spans 12.6-Ha and features over 69,000 sqm of NLA  across 12 buildings. The spaces range from 2,000 to 18,000 sqm, with the development completed in 2024.

Targeting small and medium-sized businesses needing last-mile storage, the estate is 75% leased to tenants including Kerry Logistics and Honest to Goodness. This sale is part of Brookfield's strategy to expand its logistics portfolio.

The asset was purchased by Gateway Capital Urban Logistics Partnership, a joint venture between the Ontario Teachers' Pension Plan, an Asian Sovereign Wealth Fund, and Gateway Capital, with the deal being managed by CBRE's Chris O'Brien and Jason Edge.

ORANGE - $37.4 million

Centennial and its retail joint venture partner, Parkstone, have started the year by purchasing their second high-performing regional shopping centre asset.

The Village on Summer Street is a prominent neighbourhood centre situated on a 21,090 sqm site, the largest landholding in the city's CBD. The retail space spans 4,974 sqm, representing over 23% of the total site area. The Village is anchored by Supa IGA, one of Australia’s top performing Dan Murphy's, ten specialty retailers and is supported by 268 car parks. The partnership is proposing to develop a further 1,800 sqm of retail space in the short term on the back of current demand from national retailers.

The asset was acquired from Bill Gravanis and architect Paul Saunders, allowing Centennial and Parkstone to enhance the centre's tenancy mix, with their closed-end 'Village on Summer' fund targeting an IRR of 15% to 17% p.a. comprising a healthy income component based on the centre's dominant position in the region. 

The purchase was partly funded through a $20m capital raise that closed early and was oversubscribed.

Victoria

WARRNAMBOOL - $20 million

ASX-listed Region Group has offloaded East Warrnambool Shopping Centre. The centre achieved a benchmark result representing a yield of 5.50%, the sharpest yield for a Victorian neighbourhood shopping centre in 2024. 

 According to Colliers' latest 'Australian Real Estate Investment Review and Outlook 2025', the neighbourhood shopping centre market continues to demonstrate robust performance, driven by a strong focus on non-discretionary retail. The total volume for Neighbourhood assets reached an impressive $1.37 billion nationally in 2024, marking an 18.0% increase compared to 2023.  

The fully-leased East Warrnambool Shopping Centre, located 222km from Melbourne CBD, features a defensive 94% weighting to national tenants, including anchor tenant Woolworths. 

The deal was managed by Colliers Tim McIntosh.

SPRINGVALE - $4.55 million

A brand-new KFC in Springvale has been snapped up for $4.8 million, reflecting a sharp 4.19% yield. 

The sale, brokered by Burgess Rawson’s Matthew Wright, Zomart He, Justin Kramersh, and Beau Coulter, was secured by a private investor at Investment Portfolio Auction 174. 

Located at 98-106 Westall Road, the high-profile asset attracted significant interest due to its long-term lease to KFC, one of Australia’s most recognisable fast-food brands. With a 10-year lease extending to 2034 and options to 2064, the property offers strong security under the Southern Restaurants Group, the nation’s largest private KFC franchise operator. 

BRAYBROOK - $4.55 million

A private investor has paid $4,550,000 for an industrial property in Braybrook, reflecting a sharp 5.51% yield. 

The sale of 188 Duke Street and 62 Burke Street was handled by Burgess Rawson’s Jamie Perlinger and David Napoleone and attracted significant interest, generating 65 enquiries. 

The property, occupied by AMA Group Limited, was offered as part of Auction Investment Portfolio 174. It benefits from a renewed five-year net lease to AMA Group Limited until October 2028, with an additional five-year option extending to 2033. The lease structure ensures AMA Group Limited is responsible for all outgoings, including single-holding land tax, while fixed annual rent increases of 3% provide built-in income growth. 

Queensland

LOGAN CENTRAL  - $5.5 million

Two neighbouring, fully leased to government-funded social service businesses, and premium commercial buildings in the heart of Logan have transacted for a combined $5.5 million to a NSW-based private investor looking for solid holding income and a strong redevelopment future. 

The 2533 sqm freehold centre-zoned properties located at 7-9 Station Road in Logan Central were transacted by Colliers' Philip O’Dwyer and Harry Higgins on behalf of Brisbane-based OzMob Pty Ltd. 

ASHGROVE - $4.1 million

A suburban retail property in Brisbane has sold in an off-market deal for more than $4 million.

The fully-leased property at 498 Waterworks Road in Ashgrove has 402sq m of net lettable area on a 556sq m site.

This two-storey Art Deco building, designed by Walter Kerrison, was constructed in 1937 for Sydney George Hughes. It opened as the Victory Cash Store and has since housed a variety of retail businesses.

Today, it is leased by three tenants – Ashgrove Cycles (Giant Ashgrove), which has occupied the space for more than 25 years; Our Sun Room, which sells affordable fashion, accessories and homewares and has occupied the space for seven years; and Corn Street Café, which has occupied the space since 2023.

The property has been purchased by a private investor in an off-market deal negotiated by Jacob Heinke and Hayden Ryan on behalf of the vendor, Pennant Pty Ltd.