New South Wales
SYDNEY CBD - $210.5 million
Sydney’s Sir Stamford at Circular Quay has been divested by Stamford Land Corporation to private principal investment firm JDH Capital via an exercisable option agreement between the two organisations. In a statement to the Singapore Stock Exchange, Stamford Land stated that the sale price was $120.5 million above its most recent company valuation of $90 million. The hotel is a 1,631 sqm freehold 10-storey hotel that contains 105 bedrooms, a restaurant, bar, roof-top fitness centre, a pool, and parking for 109 cars.
JDH Capital are redeveloping the Sirius building in the Rocks, as well as the former Vibe hotel in Rushcutters Bay.
LANE COVE – Circa $50 million
After 93 years of ownership, the Campion family has offloaded “the Longy” - the colloquial name for Lane Cove’s Longueville Hotel, a staple hospitality destination for Sydney’s lower north shore. The respected venue operator Gallagher Hotels secured the property off-market, after a campaign steered by JLL’s John Musca and Ben McDonald. The 852 sqm landholding is considered a gateway site at the entry point of Lane Cove Village, and contains 27 gaming machines in conjunction with a 3am trading approval, enabling it to produce weekly revenue in excess of $160,000.
“Transaction activity in the asset-class is at a two-decade high nationally, not surprising given the superior weighting attributed to hotel earnings and the very limited number of assets per capita that will ever be available to acquire – we are witnessing never before seen consolidation,” stated Mr. Musca.
MACKSVILLE – Undisclosed
Forster-based investor, Ross Simpson, has offloaded the waterfront Star Hotel on New South Wales’ north coast. The freehold passive investment pub enjoys annual rent of approximately $273,498, and the current lease has 20 years remaining. The purchaser, a local investor, is attracted to the stability of the investment, as well as the 10 gaming entitlements afforded by the site.
According to HTL Property Director, Blake Edwards, whose agency was appointed to market the property, “We are finding that pub sale prices continue to defy both expectations and some challenges being met by other property indexed asset classes, with excellent trading conditions reported across NSW and values underpinned by rising entitlement prices.”
Victoria
SOUTH MELBOURNE – Undisclosed
Build-to-rent platform, Local, has acquired a 40-storey tower project in a transaction with private developer Michael Dib. Local was founded by Dan McLennan and Matthew Berg, and secured its first project last year with a 500-unit development in the north-west suburb of Kensington. This purchase serves as their second project, with a third expected to be revealed later this year. Local have announced that the site could start construction as early as October, with a 2025 completion date being anticipated.
“The scale of this particular project supports our model of incorporating ‘salt and pepper’ impact housing in our developments and is just one of many build-to-rent projects currently in the Local pipeline,” explained Mr. McLennan. While BTR has previously been considered a peripheral sector in the development world, groups like Local are contributing to the activation of more projects within the field than ever before.
MELBOURNE PORTFOLIO - Circa $4.165 million
At CBRE's maiden Healthcare & Childcare Portfolio Auction, two healthcare facilities in Melbourne have been purchased by high-net-worth private investors, in what serves as Australia's first auction event specifically dedicated to the sector. A domestic investor purchased 530-532 Melton Highway, Sydenham, in Melbourne’s north-west, for $2.345m. With the 339sqm building occupied by Capital Radiology on a five-year lease with an additional five-year option, the sale price reflects a yield of 5.07%.
A 252 sqm building in Montorse was also purchased by another domestic investor, who put aside $1.82 million for the property at 10 Leith Road. The building is occupied by Sia Medical on a seven-year lease with two five-year options. The sale price reflects a yield of 5.5%.
CBRE’s Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto, Harry Einarson and Mitch Curnow developed and managed the auction event. Mr. Peluso stated that, "The auction was a great success, especially against the backdrop of the struggles many in the broader market are facing trying to sell."
ARMADALE – $1.91 million
Investors continue to pursue opportunities within Melbourne’s high-performing shopping strips, as another High Street, Armadale retail property sold under the hammer on a tight yield at a competitive auction. Fitzroys’ Lewis Waddell and Chris Kombi sold 1208 High Street, Armadale for $1.91 million, at a 3.9% yield on behalf of a private vendor. The 130sqm building is leased until 2026 plus options to Melanie Grant, which has four boutique skin studios in Melbourne, Sydney, Paris and Los Angeles, and services a number of high-profile clients.
According to Fitzroys’ latest Walk the Strip report, High Street, Armadale has again retained single-digit retail vacancies in 2022. “The result reaffirms the strength of High Street, Armadale, which has again shown it is one of the top few strips in Melbourne,” stated Mr. Waddell. “It services one of Melbourne’s most prized catchments, which has continually supported strong trading, and new developments are further activating the strip and further attracting tenants.”
TULLAMARINE - $1.4 million
Fitzroys’ Brent Glassford and Marco Sandrin sold 7 Dib Court at a hotly-contested auction for a vacant industrial land parcel in Tullamarine. The site is zoned Industrial 1, and strategically located in Melbourne’s industrial north-west with access to Melbourne Airport, Port of Melbourne, and major road arterial networks including Tullamarine Freeway and M80 Ring Road.
“Industrial land availability across Melbourne is at historic lows, and strategically located sites are all the more highly sought-after. Owner-occupiers and developers showed huge interest in this property,” stated Mr. Glassford.
IVANHOE – Property Swap
Samma Property Group and Vasey RSL Care have exchanged landholdings in a property swap of significant proportions. Vasey RSL Care is sending Samma a 7,235 sqm Ivanhoe development site which currently features 17 older-style villa units over nine suburban-sized blocks, along with the planning permit for the site. In return, the not-for-profit Vasey RSL Care will receive 27 one-bedroom apartments on 85-131 Bell Street.
According to Vasey’s Janna Voloshin, the property swap will help enable the group to provide more affordable housing for veterans specifically. “One of the goals set out in our white paper is to increase our capacity to support veterans especially the growing proportion of younger veterans needing housing,” Voloshin said. “From a strategic perspective, acquiring 10 additional homes for veterans, war widows or partners is a very exciting stride forwards, providing state-of-the-art housing for our community.”
Queensland
RAINBOW BEACH - $4.43 million
The Rainbow Beach Shopping Centre in Rainbow Beach, QLD, has sold for $4.43 million at an auction, generating a 7.32 per cent fully let net yield. The centre is anchored by a high-traffic IGA supermarket, which has had its lease renewed for a further five years to 2027. Alongside the IGA outlet, the supermarket offers six specialty stores, five of which are currently leased. The site was brought to market by Ray White Commercial agents Michael Feltoe, Paul Butler, Lachlan O’Keeffe, and David Brinkley.
When the property was first announced as being for sale, Mr. Feltoe explained why the opportunity to purchase such a landholding should be considered exciting for prospective buyers: “IGA’s in Queensland have performed exceptionally well since the beginning of the pandemic, with average sales growth in excess of 15 per cent across the state.” Mr. Feltoe’s colleague, Lachlan O’Keeffe, stated subsequent to the auction that “despite the recent economic volatility, the centre commanded strong interest,” indicating that the market recognised the value in the offering.
