Deals of the Week - 24th June 2024

Queensland 

WEST END - $42 million

The Soda Factory in Brisbane’s West End has been sold by the listed Region Group for $42 million, representing a premium to book value. 

CBRE’s Joe Tynan and Michael Hedger negotiated the sale to a HNW private investor.

The Soda Factory has a rich history spanning back 100 years and was originally used as a soda and bottling facility – something the previous developer paid homage to.

Anchored by a strong performing Coles Supermarket and further supported by 21 additional retailers with a focus on food and beverage and allied health retailers, the centre is located in a strategic location approximately 1.5km from the Brisbane CBD. 

The buyer, an awarded commercial and residential group, is highly active in the market and has a deep connection to the West End precinct.

New South Wales 

BONDI BEACH - $19 million

Another unit block in Sydney has sold in a deal negotiated by Knight Frank, taking the agency’s total recent sales for the property type in the city to nearly $19 million.  

An art deco block of four units 88 Francis Street, known as ‘The Pines’ sold for $6.9 million, equating to $1,7250,000 per unit.

The property was purchased by an international investor purchaser from the Hersch Family, a deal negotiated by James Masselos, Adam Droubi and Demi Carigliano of Knight Frank.  

The property sold on a 2.85% gross yield with a current income of $197,600. However, the total market gross income is estimated at 270,400 per annum, with potential for rental reversion. 

CONCORD - $13.2 million 

A trophy Sydney-based facility at 173 Majors Bay Road was offloaded by Healthco HealthCare & Wellness REIT. 

The property sold after only 7 days on the market and represents a market-based yield of 4.92%. The 100-place childcare centre is set across a 1,625 sqm site and carries a lease to a local private operator, Endeavour Early Education, through to 2034 + options.

The deal was managed by Stonebridge's Kevin Tong, Michael Collins and Tom Moreland. 

WODONGA - $6.4 million

A New South Wales-based private investor has purchased a prime commercial asset at 38-40 High Street, Wodonga, Victoria for $6.4 million. 

The sale was managed by Burgess Rawson’s Beau Coulter, Justin Kramersh, and Sam Mercuri, in conjunction with Dixon Commercial’s Andrew Dixon and Oscar Dixon. 

Mr Coulter said the sale highlights the continued demand for high-quality commercial properties in strategic locations. 

The two-level building spans 3,811 square metres and is situated on a 2,811 square metre corner site with a 107-metre combined street frontage.

WOLLONGONG - $4.59 million

A former NAB in Wollongong’s prized Crown Street Mall has transacted for $4.592 million through Burgess Rawson’s Kieran Bourke and John Ingui in conjunction with Knight Frank’s Ben Churven and Luke Field. 

Mr Bourke said the partially leased property was sold to a local who will potentially occupy the premises in the short term with a view to a future mixed-use development.

Positioned at 147 Crown Street, the 1,025 sqm development site features double retail frontage. The E2 Commercial Centre zoning allows for the redevelopment of a number of future uses with a building height of 48 metres.

Victoria

DRUMMOYNE - $7.5 million 

Three neighbouring commercial freehold buildings commanding a prime corner position on Sydney’s iconic Victoria Road at Drummoyne have been sold in one line. 

The properties at 66 – 72 Victoria Road in Sydney’s inner west occupy 961 sqm with two street frontages – Victoria Road and Day Street – and have future development potential with views over the Parramatta River and Sydney Harbour.  

A mix of local retail and office premises currently occupy the buildings, with Concept Lighting and Concordia Legal amongst various occupants.  

The three freeholds were sold by Yazzy Ptd Ltd to an offshore private high-net-worth investor, in an off-market deal negotiated by Knight Frank’s James Masselos, Anthony Pirrottina, Demi Carigliano and Harrison Burcher, with buyers’ agency Costi Cohen representing the buyer. 

NUNAWADING - $2.61 million 

A prime industrial property at 13 Metropolitan Avenue was sold to a local occupier after a sales campaign managed by CVA's Jarrod Moran and Stan Dawidowski.

The successful buyer, a local occupier who had been identified prior to the campaign launch, secured the property under vacant possession. The buyer’s pre-auction interest underscores the desirability of Nunawading’s commercial amenities and strategic location. 

The property’s exceptional location, combined with its versatile layout and proximity to key infrastructure, made it a highly attractive investment. With zero similar industrial assets currently available on the market, the sale sets a new standard for future transactions in the area.

BROADMEADOWS - Undisclosed

Icon Developments, wholly owned by Japanese property and construction giant Kajima, has exchanged contracts to acquire a strategic logistics site located at 1 Broadfield Road. The 4.4-hectare site will be developed into a $90m+ multi-unit logistics estate with a proposed NLA of 28,000 sqm.  

This marks the first acquisition under a strategic joint venture with Elanor Investors Group, to establish a high-quality industrial and logistics portfolio. The strategy for the JV is to grow a $250M+ medium to large-scale industrial platform along Australia’s east coast.