Portfolio
SYDNEY - $95 million
Bob Ell and his Leda Holdings investment and development company have sold a portfolio of three properties to the recently established Pittwater Industrial, with the deal being headlined by the $66.75 million sale of 247 King Street in Mascot. The King Street site is home to nine office and warehouse buildings over two-storeys, and its sale reflects a 2.7% yield. Additionally, the transaction includes a 3,993 sqm Eastern Creek property, and a 5,771 sqm in the western suburb of Smithfield. Colliers’ Gavin Bishop, Sean Thomson, Trent Gallagher and Paul McGlynn brokered the off-market deals.
South Australia
TORRENSVILLE - $85 million
Charter Hall’s Retail REIT and Telstra Super have sold the Brickworks Marketplace shopping centre in Adelaide’s Torrensville to FRP Capital, in a deal that equates to a 6.07% yield. The Woolworths-anchored large format retail investment was completed in 2015 by Woolworths, who then sold the site on to Charter Hall. The centre contains 17,160 sqm in NLA and features major national tenants like Woolworths, Big W and Dan Murphy’s. With a strong occupancy of 96% working in tandem with a lengthy WALE of 9.28 years, FRP have developed the Brickworks Marketplace Fund, which is now open to wholesale investors.
Victoria
NORTH MELBOURNE – Undisclosed
Melbourne-based BRC Developments have acquired the 5,463 sqm site at 189-203 Arden Street in North Melbourne, in their first foray into the world of real estate. The group’s parent entity, BRC Capital, have been active in the medical technology sector, having recently collaborated with the University of Melbourne to establish Australia’s preeminent medical technology innovation facility: the Joint Research and Training Centre. This partnership will likely move into the Arden site as part of BRC’s ongoing expansion of their medical technology capability.
Colliers’ Trent Hobart and Robert Papaleo brokered the ‘Arden Central’ deal, and are confident that the site will play a significant role in the development of the local area. “The Arden Central precinct will become a key destination for Victoria and integral employment, education, medical and innovation precinct,” stated Mr. Hobart. The vendor, Nick Theodossi, expressed an intention to remain in the area. “We have been in business in this precinct for 52 years and have every intention of staying in the precinct in our current Nick Theodossi Prestige Cars showroom for the long term,” Mr. Theodossi explained.
BEACONSFIELD - $24.5 million
Cardinia Park Hotel in Beaconsfield has sold for $25.4 million, thanks to the efforts of JLL’s Will Connolly. The property was acquired by the Deborah Mathieson-Tomsic and Dave Tomsic-helmed Black Rhino Group, and features 48,976 sqm that contain 45 electronic gaming machines, a family bistro, and renovated public bar. “The sale of the Cardinia Park is a perfect example of the aggression shown within our market for hotel assets of this ilk, with a balanced mix of departmental revenue, an incredibly well-maintained and presented venue and a solid reputation within the area,” stated Mr. Connolly. “What cannot be underestimated though... is the land-banking aspect, with close to 5-hectares of land within one of of metropolitan Melbourne’s most rapidly expanding locations.”
MELBOURNE CBD - $18.02 million
The prestigious Swanston House, situated at 163 Swanston Street in the heart of Melbourne’s CBD, has sold at an auction for $18.02 million. Over 150 people attended the sales event, with a local investor serving as the successful acquiring party. Colliers’ Leon Ma, Daniel Wolman, and Oliver Hay, in conjunction with Alexander Robert’s Kristian Peatling and Warwick Bramich, were responsible for managing the campaign for the property, on behalf of the Conos family. The building was constructed in 1922 by well-known architect Nahum Barnet, and has served an integral role in characterising Melbourne’s popular Swanston Street ever since its initial opening.
“Despite current interest rate rises, we have witnessed a strong demand for quality commercial property across all asset classes in Melbourne,” stated Mr. Ma. “The recent sale of Swanston House demonstrates just that.”
New South Wales
CHATSWOOD - $30.5 million
The freehold going concern interest in Chatswood’s popular Chelsea Hotel has been divested by Patrick J. Gallagher and his Gallagher Hotels vehicle, thanks to Ben McDonald and John Musca of JLL’s Hotels & Hospitality Group. The hotel sits opposite the entrance to Chatswood Station, and offers 30 gaming machines, a bistro, and both a bistro bar and public bar. Additionally, the property has DA approval for a beer garden deck; this comes in tandem with the local council’s recent approval to extend the trading hours from 1am to 4am, demonstrating major upside for the new owners.
“Chelsea Hotel presents as an ideal ‘bolt on’ acquisition given the low-cost operating model and is sure to provide the incoming purchaser with an opportunity to capitalise on the enormous near-term growth prospects of Chatswood’s town centre and railway precinct,” stated Mr. McDonald.
WEE WAA – Circa $150 million
Hancock Agriculture has acquired three properties in Wee Waa, including the 2,982-hectare Cudgewa landholding, as well as Pindara and Pian Plain. The aggregation, which totals a collective 6,856-hectares, was purchased from the Findley family, and features a sizable water entitlement, empowering cotton production on the sites. Hancock Agriculture owns approximately half a dozen assets in the Wee Waa locality, including the 3,900-hectare Warrabah Station. The business is run by one of Australia’s most wealthy individuals, Gina Rinehart.
Queensland
BRISBANE CBD - $141.1 million
A 23-storey Brisbane office tower has been acquired by Real Estate Management (RAM), in a $141.1 million transaction that sees the ASX-listed real estate investment trust Growthpoint offload the 16,301 sqm NLA commercial asset for a yield over 7%. 333 Ann Street is fully occupied, and features tenants like the federal government and a variety of superannuation groups.
RAM’s Head of Real Estate, Matthew Strotton, emphasised the allure of secure properties when asked for comment. “We are at a point in the cycle where taking a position in pre-existing, well-let assets with long-term contracted income is very attractive,” Strotton explained. CBRE's Bruce Baker and Peter Chapple helped commandeer the marketing campaign.
BROOKWATER - $3.35 million
Childcare continues its upwards ascendance after the impressive sale of a 2,000 sqm property at 2A Tournament Drive to Raw Property Studio Services Pty Ltd. Given the site’s proximity to the Woolworths-anchored Brookwater Village Shopping Centre and the Brookwater Office Park, the new owner has declared an intention to construct a two-storey retail development on the site, which is to include a childcare centre. Busy Bees Early Learning Australia have already committed to the 130-place childcare centre for a total of 25 years.
“Brookwater is a prestigious and sought-after area, considered to the ‘jewel in the crown’ of Greater Springfield,” stated Knight Frank’s Christian Sandstrom, who arranged the sale. “This site offered a blank canvas for buyers with a multitude of development outcomes, including commercial, educational and childcare, and a retail and childcare development will cater to growing demand in the area.”
