Victoria
FITZROY – c$32 million
The international real estate developer Greystar has announced their acquisition of 155 Johnston Street in the popular suburb of Fitzroy. The 2,556 sqm site is intended to be developed into a unique and locally contextual residential building that will offer an elevated experience for future residents. The company will look to work in collaboration with the Yarra City Council to progress the project through town planning.
“This was a rare opportunity to secure a site suitable for BTR in the heart of Fitzroy,” stated Chris Key, Greystar’s Managing Director for Australia. “It is undoubtedly a suburb that is full of some of the city’s best retail stores, galleries, bars, pubs, restaurants, and cafes, and we look forward to being able to extend the lifestyle options in the area with an exciting rental proposition for future residents.”
CAMBERWELL – c$21 million
697 Burke Road, in the middle of one of Melbourne’s most in-demand shopping strips, has been offloaded by Vantage Property, who had held the refurbished office building since 1999. Sold to a private investor, the building is comprised of six stories of office accommodation over 2,791 sqm of NLA. It generates a fully-leased annual net income of $1,247,455.
CBRE’s Tom Ryan and Scott Orchard negotiated the sale on behalf of the vendor, and attributed the sale to persistence in spite of the current economic landscape. “With market uncertainties resulting in some buyer hesitation through the middle part of the year, we took a strategic position on the strong investment fundamental and the asset’s future growth story to achieve this sale outcome,” stated Mr. Ryan.
BRUNSWICK - $4.85 million
Fitzroys’ Brent Glassford, Marco Sandrin, and Mark Talbot have helped the Priwler family divest 160-164A Victoria Street, which contains five independent warehouses worth 1,921 sqm of building area. The site, which contains a total of 2,679 sqm of land, is zoned Neighbourhood Residential 1 and Industrial 3, and is fully-leased to a variety of established tenants with highly flexible lease profiles.
“The purchaser is a passive investor who will landbank the site for many years to come,” stated Mr. Talbot. “Large-scale landholdings in Melbourne’s inner north are particularly rare to find at the moment, especially those so close to a busy lifestyle and hospitality strip.” Talbot is referring to Lygon Street, which according to the recently published Walk The Strip report, has experienced a substantial uptake in new hospitality operators recently, including Miss Frankie, Karen’s Diner and La Cabra, which has contributed to a 9.1% improvement in vacancy.
ACT
HUME - $11.015 million
A 12,707 sqm industrial asset in Hume, currently occupied by Australia’s largest glass producer, has been sold at the Sydney leg of Burgess Rawson’s 156th Portfolio Auction. 2 Paspaley Street contains a purpose-built 4,060 sqm industrial facility that was constructed in 2016, and the property’s security is supported by a 10-year lease to tenant Viridian that features options to 2042. The site’s marketing campaign was run by Burgess Rawson’s Rhys Parker, Guy Randell, and Geoff Sinclair.
Commenting on both the sale and the overall success of the Sydney instalment, Mr. Parker celebrated investor interest in industrial. “The industrial sector is highly regarded by private investors, property syndicates, and institutional investors,” Mr. Parker explained. “They are particularly focused on large land holdings, improved by functional buildings, in strategic commercial locations close to major arterials and complementary businesses.”
New South Wales
SMITHFIELD – c$9 million
The independent property development vehicle REVELOP has purchased Smithfield Square in the west of Sydney, for a reported $9 million. The 5,500 sqm neighbourhood shopping centre is currently anchored by a full-line Coles supermarket that contains 15+ specialty retailers and over 200 parking spaces. The group’s press release declared an intention to transform and reposition the asset, so as to cater “to the needs of the local and broader community.”
“On completion, the centre will be home to a 100-place childcare centre, swim school, gym, medical centre,” the press release reads. “[It will] include kids entertainment venues alongside food and speciality retailers, with further service-based tenants [expected] to meet the daily needs of its customers.”
DORRIGO MOUNTAIN – Undisclosed
One of the country’s most picturesque hospitality offerings has been sold to Anthony Parmenter, a local owner who also operates Lodge Bellingen. Lookout Mountain Retreat is a twenty-six room hotel, that contains an eighty-seat restaurant with conference event capability and stunning views across its six-hectare land holding. HTL Property’s James Carrick and Nic Simarro were responsible for facilitating the Expressions of Interest campaign.
“Accommodation offerings that provide their clients with an experience or list of outdoor activities are high on the agenda for a number of investment groups we are currently dealing with,” commented Mr. Carrick. “Since the COVID-19 related lockdowns, we have seen an overwhelming number of these parties seeking to reposition current regional accommodation in order to take advantage of experiences, or pursue properties such as this one.”
Queensland
CAIRNS NORTH - $17 million
A 2,155 sqm two-storey building at 420-422 Sheridan Street in Cairns North has sold, following an Expressions of Interest campaign arranged by Knight Frank and CBRE Cairns. The building was purpose-designed and built for the Australian Federal Police, and is leased to the AFP on a fifteen-year lease, with multiple options to 2039. The purchaser was a New South Wales-based investor, whilst the offloading party was from Victoria. Knight Frank Queensland’s Christian Sandstrom and Greg Wood worked in conjunction with Danny Betros of CBRE Cairns to bring the property to market.
“This investor already owns a portfolio of government-leased assets and was attracted by the calibre of the Commonwealth tenant, high quality of the building, and the fact that the property was purpose-designed for the AFP’s specific accommodation needs,” Mr. Sandstrom explained.
MORANBAH - $8 million
Sentinel Property Group’s busy year continues, thanks to the acquisition of a hotel/motel complex in the township of Moranbah, west of Mackay. The Black Nugget at 81 Mills Avenue is the sixth asset in the Sentinel Northern Australia Investment Fund, and was sold by a private investor who was represented by Pat O’Driscoll Real Estate. The complex contains five buildings, including the hotel, three motel buildings comprised of 28 rooms, and a manager’s house. The pub features a public sports bar, gaming room, function room, beer garden, bistro and commercial kitchen, amongst other amenities. According to Sentinel, an experienced hotel/motel corporate group will operate the hotel and motel’s leasehold under a 20-year triple net lease.
South Australia
EDWARDSTOWN - $1.3 million
An industrial facility in Adelaide’s Edwardstown has been purchased after just four days on the market, demonstrating continued interest in Adelaide’s stock of industrial property. The 415 sqm office/warehouse at 5 Woodlands Terrace is fully leased to perforated metal sheet manufacturer Rapid Perforating, with the tenant occupying the facility since construction was completed in 2020.
A private buyer bought the property, thanks to a private treaty campaign managed by Knight Frank’s David Ludlow and Marco Onorato. “The sale price equated to a 4.5 per cent return, highlighting that industrial yields are holding firm, particularly in the sub-$5 million price bracket,” Mr. Ludlow stated.
Western Australia
FREMANTLE - $3.8 million
A private investor from Western Australia has acquired 108 Marine Terrace in Fremantle; a well-positioned site with access to one of the area’s preeminent commercial, tourism, food & beverage precincts. The property’s Mixed Use – R35 zoning allows for future development and value creation opportunities, and possesses 1,924 sqm of space. The site was presented for sale by JLL’s Ross Palframan and Sean Flynn, on behalf of the vendor, Vantage Property Investments.
“108 Marine Terrace represented a genuinely rare opportunity to acquire an asset in one of Perth’s most sought-after urban renewal locations,” explained Mr. Palframan. “The flexible use profile allowed purchasers to either invest, owner occupy, repurpose, or redevelop a strategic and high-profile site in the centre of Fremantle’s ever growing commercial precinct, where we continue to see significant investment and development in the suburb.”
Vantage’s Matt Spring credited the sale with the quality of the improvements made over the years that the organisation owner the building. “The property has been a dependable asset over the years, and the strong result is no surprise given we had positioned the building on behalf of a small group of investors to perform in the modern market despite continual economic and market challenges,” Mr. Spring divulged.
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