Deals of the Week - 4th November 2024

Victoria

MELTON - $100 million 

Privately owned Melbourne-based developer, 888 Property Group, purchased a 48-hectare development site for $100 million.

Located at  562 to 600 Leakes Road, Bonnie Brook, Melton, the site will support the development of up to 1,000 homes. The Bonnie Brook site is part of the “Warrensbrook PSP. 

Located within the thriving Melton region, this site positions 888 Property Group to address Melbourne’s escalating housing demand, particularly in the west, where population growth continues to surge.

The deal was managed by RPM Group's Zaynoun Melham.

TRUGANINA - $100 million

Simultaneously, 888 Property Group purchased a second site at 687 Hopkins Road, Truganina, for $100 million. 

This 42-hectare site, acquired in an off-market transaction, will undergo rezoning as part of the Chartwell East Precinct Structure Plan (PSP). The land will be transformed into a major industrial hub, meeting Melbourne’s industrial supply needs as demand continues to outstrip availability.

The deal was brokered by X-Commercial's Andrew Macqueen and Cameron Hunter.

PRAHRAN - $4.5 million

Property Developer Kincrest purchased a 500 sqm commercial office development site at 43 Porter Street, Prahran.

The property features an approved planning permit for an eight-storey office building with 2,169 sqm of permitted NLA.

Kincrest is underway with planning for a $100m mixed use project, featuring retail, commercial office and large residential apartments, leveraging off it’s connectivity to retail and public transport amenity.

Kincrest has engaged Cheah Saw Architecture to incorporate the site at 43 Porter Street into an amalgamated adjoining site at 3-7 Grattan Street, Prahran. 

The off-market deal was managed by Colliers Ben Baines.

Queensland

RICHLANDS - $26.75 million

A Queensland-based private investor has purchased a 13,763 sqm office/warehouse facility at 616 Boundary Road in Richlands for $26.75 million.

The facility was sold on behalf of a listed REIT, which acquired the property off-market in 2018 for $15.9 million in a three-year leaseback deal with logistics group, Border Express.

CBRE’s Matthew Frazer-Ryan and Jack Hardy managed the recent sale, which represents an improved building rate of $1,953/sqm.

Leased to Grays E Commerce Group Ltd, the facility is positioned on the corner of Boundary and Archerfield Road on an expansive 3.13ha site. It has been used as a manufacturing and transport facility.

UNDERWOOD - $3.5 million

Four adjoining commercial strata lots providing modern office situated in the corridor between Brisbane and the Gold Coast have been snapped up by an investor following a highly competitive marketing campaign. 

The properties, consisting of lots 3105 to 3108 at 2994 Logan Road in Underwood, were purchased by an interstate investor for $3.5 million, with the final price reflecting a yield of 7.99%

The sale followed an Expressions of Interest campaign run by Knight Frank's Jacob Heinke and Hayden Ryan on behalf of the vendor, Properties & Pathways. 

The commercial offering of 699 sqm is fully leased to Uniting Care Queensland, which has been occupying the property for 15 years and has a lease in place for at least another five years, with options after that time. 

Northern Territory

DARWIN - $6.6 million

A private investor has purchased a childcare asset in Darwin.

In a sales campaign managed Burgess Rawson’s Beau Coulter, Natalie Couper and Andrew Havig in conjunction with Craig Inkster of McGees Property, the investor purchased a  Zuccoli Early Learners at 17 Ginger Street, Zuccoli (Darwin), NT for $6.6 million. 

Mr Coulter highlighted the asset's strong appeal to the purchaser, noting the absence of land tax in the Northern Territory as a key advantage. 

Mr Inkster said the Top End is a hotspot for investment– with a $50 billion pipeline of major projects buyer confidence remains high. 

Zuccoli Early Learners, an established operator with three successful locations, occupies the premises on a 10-year net lease through to 2028, with options extending to 2048. The asset has a net income of $477,620 per annum. Rent increases are fixed at 3% annually with ratchet provisions at market reviews, providing continual rental growth.