Deals of the week – 29 June 2020

Victoria

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MELBOURNE - Undisclosed
The settlement by Japan’s Daisho of the W Hotel (the hotel component of Collins Arch) in Melbourne’s CBD is now complete, forming part of Cbus Property’s $1.25 billion mixed use development which also includes 184 apartments and 49,000sqm of office space.

Known as W Melbourne, the luxury hotel at 408 Flinders Lane comprises 294 rooms across 15 levels and is scheduled to open in December 2020.

The deal was negotiated by Savills Australia.

COLLINGWOOD - $43 million
A Malaysian developer has spent $43 million to secure a prominent Melbourne car dealership with plans to turn it into an apartment tower.

The asset is located at 21-53 Hoddle St, Collingwood, and is currently operating as a Honda, Nissan and Hyundai dealership.

New owners, UEM Sunrise Berhad, have recently finished building Melbourne’s third-tallest tower, the $800 million Aurora Melbourne Central tower, which stands more than 270m tall in the CBD.

The deal was brokered by Colliers International’s Oliver Hay and Peter Bremner and ICR Property Group’s Raff De Luise.

BOX HILL - $9.5 million
An established local developer has snapped up five separate medical suites on a large landholding, directly opposite the Box Hill Hospital for $9.5 million.

Located at 21-23 Arnold Street, the 1,483sqm site is currently occupied by a fully operational Medical Centre, which is subdivided into five separate medical suites, all separately owned by 16 individuals – including doctors and medical professionals. There are 24 car spaces on site and the five suites total 420sqm. The property is zoned Residential Growth Zone 3 and is positioned for major residential and/or mixed-use redevelopment, with a 14-level height precedent set directly next door.

The sale was negotiated by Clinton Baxter, Jesse Radisich and Benson Zhou of Savills Australia who confirmed that most owners had purchased their medical suite for a price ranging from $180,000 - $300,000 over the years, many in partnership.  So, by combining to sell altogether to a developer – each suite has pocketed $1,900,000.

OAKLEIGH - $8 million +
A premium childcare property in Melbourne’s Oakleigh East – tenanted by the country’s largest early learning operator, Guardian Early Learning – has sold for over $8 million prior to hitting the market.

Completed in 2012, the 1,415sqm General Residential zoned property is located at 82 Ferntree Gully Road and has capacity for 106 children and 20 on-site parking spaces. A Chinese investor secured the asset, which transacted on a 5.4% yield and will accrue an annual rental of $440,072. 

CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto negotiated the deal.
 

New South Wales

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PARRAMATTA - $40 million
A local investor has splashed out nearly $40 million to purchase a half vacant commercial office block in Parramatta.

The property, situated at 16-18 Wentworth Street, was built in 1991 and was last sold around eight years ago, fully leased and for just $18 million. Despite being half empty, the 1,333sqm property, which offers a total NLA of around 6,408sqm, secured a strong result as buyers saw potential to add value, despite the COVID-19 overall blanket effect covering the market.

Ray White Commercial’s Jai Sethi managed the deal.

NORTH BONDI - $25.4 million
An iconic retail strip in North Bondi has successfully transacted for an incredible $25.4 million at auction, resulting in $8.4 million above the $17 million price guide.

The complex holds address at 286-294 Campbell Parade, with longstanding tenants The Depot cafe, Doughboy Pizza, Sage Beauty and Nio & Tony’s local grocery sitting underneath six apartments.

The sales campaign was handled by William Manning of McGrath in conjunction with Miron Solomons and Matt Pontey of Colliers International.

PRESTONS - $8 million
A local Sydney investor has purchased a BP service station for $8 million at 14 Bernera Road in Prestons, as the asset class continued to fuel interest in the commercial market.

The south-west Sydney asset, that came with a site area of 3,612sqm and great access to major arterial roads, was sold on a 5.5 per cent yield.

The property was marketed and sold by Ray White Commercial’s Stephen Kidd, Elliot Kidd and Joseph Assaf.

AUBURN - $4.2 million
A Sydney hotel developer has secured a large industrial site in Auburn for $4.2 million at auction.

The 2,074sqm warehouse and showroom facility, located at 211-217 Parramatta Rd, is surrounded by major brands including Costco, Harvey Norman, Bunnings Warehouse, Fantastic Furniture, Adidas and Nike. The asset comprises a 1,000sqm building with a ground floor showroom area, clear span warehousing, roller door access and two street frontages.

CBRE’s Robert Dowdy and Alex Mirzaian marketed the asset.
 

Queensland

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GREENSLOPES - $2.45 million
A local Sydney/Brisbane private syndicate has beaten a slew of competitive locals to secure a residential development site in the inner-southern Brisbane suburb of Greenslopes for $2.45 million.

Located at 100 Nicholson Street, IVIE Residence is a boutique townhouse development site with the opportunity to develop Stage 2, which comprises 21 premium townhouses offering 9 x 3 bedrooms and 12 x 4 bedrooms, serviced by 43 car parks.

The approximate 3,489sqm site is zoned LMR2 low medium density residential (2 or 3 storey mix) and has strong connectivity to Greenslopes Private Hospital, Greenslopes Shopping Mall and public transport with bus services available within 300 metres.

Robert Dunne and Will Carman of Savills Australia handled the sale.
 

Western Australia

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PADBURY - $4.61 million
A Padbury child care facility 23 kilometres west of Perth, found new owners under the hammer, trading for $4.61 million as part of a recent portfolio auction event conducted by agency Burgess Rawson.

Located at 1 Forrest Rd, the 1,737sqm landholding presents a newly constructed, 1,017sqm double-storey complex licensed for 82 children. The asset returns an annual rent of $298,287.

Also part of the portfolio; located at 2 Shimmer Street in Epping, a 150-place complex marketed as one of Melbourne’s best performing because of its high average occupancy rate, traded for $6.97 million; West of Melbourne, at 24 Azolla Avenue in Werribee, a new centre rented to Imagine Childcare and Kindergarten, traded for $5.7 million; the third Melbourne childcare centre in Noble Park, failed to reach its reserve at the auction event.