Victoria
MELBOURNE – Circa $100 million
One of the country’s biggest venue operators, Australian Venue Company, have followed up the blockbuster acquisition of nine Perth pubs by purchasing eight of Melbourne’s most well-renown hospitality assets. The sites have been acquired from Melbourne-based group, Sand Hill Road, in a deal that “goes back three-to-four years,” according to AVC’s Paul Waterson. The venues include St Kilda’s The Espy, one of the most prominent entertainment complexes in the city, as well as the Garden State Hotel, the Prahran Hotel, the Bridge Hotel in Richmond, and the Terminus Hotel in Abbotsford, amongst others.
The freehold titles for all eight properties will be retained by their respective owners, including Sand Hill Road’s ownership of the freehold for The Espy.
FITZROY – Circa $9.3 million
A significant triple-fronted 900 sqm site on Fitzroy’s Gore Street has sold to prominent high-end boutique developer Neometro, at a land rate of $10,350 per sqm. The site was sold by Fitzroys’ Chris James and Chris Kombi, on behalf of a private family. The site possesses favourable Mixed Use zoning, and is situated within the Fitzroy East and Johnston Street North planning precinct.
“Developers looked past inflationary pressures and growing construction costs, recognising this was an unrivalled opportunity to deliver a project in the heart of one of Australia’s most liveable locations,” Mr. James stated. “We’ve seen prudent, highly-qualified developers compete strongly for the few recent offerings in the area and, as expected, this was no different.”
FERNTREE GULLY - $4 million
A standalone industrial offering in Ferntree Gully has sold to an established tile importing business who have been seeking a suitable space for some time. The warehouse/office comprises an overall building area of 1,910 sqm with a total land area of 3,136 sqm, that includes a clear span warehouse with 3 container roller doors, ground floor and first first-floor office, kitchenette, amenities. Additionally, the site is enhanced by 12 on-site car spaces.
Jarrod Moran and Stan Dawidowski of CVA Property Consultants facilitated the sale of the property.
BENTLEIGH - $2.26 million
A flexible 135 sqm property in the prime of the Centre Road shopping strip in Bentleigh has sold to an investor for an extremely sharp yield of 3%. 448 Centre Road is called home by popular fish and chips specialists Hunky Dory on a substantial seven-year lease that holds options for an additional seven years. The landholding was marketed by Fitzroys’ Tom Fisher and David Bourke, who also just recently sold 434 Centre Road, for $1.98 million.
“Investors are showing huge faith in bricks and mortar assets,” commented Mr. Bourke. “Well-located properties with secure leases are delivering consistent, reliable cash flows amid share market and residential market volatility.” According to Fitzroys’ forthcoming Walk the Strip report, Centre Road, Bentleigh has one of the lowest vacancy rates of all of Melbourne’s famous shopping strips, tightening further in 2022 after already sitting lower than its pre-pandemic rate in 2021.
FERNTREE GULLY - $2.94 million
A warehouse/showroom currently leased to national brand Clark Rubber has been sold at auction by CVA’s Stan Dawidowski and Jarrod Moran. The landholding is comprised of 1,524 sqm of land, and 910 sqm of building space, and its lease has recently been renewed for five years, with a further five-year option available. The auction attracted three strong bidders, who pushed the yield of the property down to 4.58%.
New South Wales
MACQUARIE FIELDS - $28 million
The Glenquarie Tavern has sold for a record-breaking $28 million, after a competitive sales process facilitated by Kate MacDonald and Ben McDonald of JLL Hotels & Hospitality. The Tavern is situated on a 5,574 sqm parcel of land, and contains a public bar, bistro, gaming room, bottle shop, outdoor terraces, and a two-bedroom manager’s flat. “This was an incredibly rare opportunity to acquire a family operated Top 100 gaming asset with over 25 years remaining on the lease,” stated MacDonald. “[It includes] ownership of the 30 gaming entitlements, with passing rent reflecting only 14% of EBITDA.” This was only the first time the property had been offered up to the market, after it was built initially in 1975 by the Radford and Cullen families.
PETERSHAM – $4.25 million
The Uniting Church has sold a 1,601sq m land holding at 32 & 32a Railway Street to a local value-add purchaser. The property consists of a large single-storey heritage church – Petersham Uniting Church – and neighbouring dilapidated two-storey terrace.
The competitive on-market expressions of interest campaign for the property resulted in 150 enquiries, 14 inspections and five first round EOIs. Anthony Pirrottina and Demi Carigliano of Knight Frank, and Adam Bodon of Adam Charles negotiated the sale.
ALEXANDRIA - $15.2 million
Developer group Aqualand has divested 55-99 Belmont Street in Alexandria, after a successful marketing campaign that delivered 127 enquiries from qualified purchasers, and 7 bids. The site represented a DA approval for 23 luxury apartments and townhouse/terrace product, and possesses a total land area of 1,883 sqm. Notably, the transaction represented the highest sale $/sqm on gross floor area for a residential development site in South Sydney. Knight Frank’s Demi Cariliano, Anthony Pirrottina, and Dominic Ong were responsible for brokering the deal.
WOODCROFT - $2.698 million
A rare 18-year net lease to 2039 with options helped encourage a tight yield for the sale of 8 Lakewood Drive in Woodcroft, which is leased by Young Academics ELC; a highly experienced Sydney childcare operator that operate 32 centres nationally. Sold on a sharp 4.51% yield, the site offers fixed 5% annual rent increases to 2025, and fixed 3% annual increases thereafter, and possesses a net income of approximately $121,800 pa. The site was sold by Sophie Herdegen and Yosh Mendis of Burgess Rawson, at the Sydney leg of the agency’s 154th portfolio auction.
Queensland
IPSWICH - $21.1 million
Quanta Investment Funds have announced the settlement of the acquisition of Yamanto Village in Ipswich, Queensland, for a reported $21.1 million. The convenience retail centre is Quanta’s first property acquisition under its new banner, having undergone a rebrand earlier this year. Yamanto Village is a fully leased, modern convenience centre constructed in 2016 with over 65% of gross income underpinned by national brands. It benefits from a complimentary mix of tenants including an Ampol service station, three national fast-food drive-throughs, a gym, a dentist and seven specialities. As part of the acquisition, Quanta successfully raised $9.9 million to complete the purchase.
“We are asset-specific buyers, so we consider all markets where there is opportunity to find value,” stated Quanta CEO, Stacey Jones. “We then rely on the team’s active asset management expertise to add value to these properties. This means we purchase properties with the aim of unlocking value through our hands-on approach.”
Northern Territory
WALHALLOW - $250 million
The adjoining NT properties of Walhallow and Creswell Downs have been offloaded by retail billionaire Brett Blundy to an asset manager from Sydney, in a deal that would constitute a price record for an Australian cattle station. Blundy initially bought the property in 2015 alongside Adrian and Emma Brown for approximately $100 million. With beef and grain prices rising considerably in recent years, rural property values have been increasing, contributing to this major transaction. The Walhallow aggregation was offered with 61,000 cattle, and was marketed by Colliers’ Rawdon Briggs, Jesse Manuel and James Beer.
DAVENPORT – Circa $30 million
Queensland’s Pickersgill family have purchased Neutral Junction Station through their family-owned Australian beef operation, Bunderra Cattle Co. The site was purchased from former Rabbitohs rugby league star, Charlie Frith. The Pickersgill family operate 10 properties throughout Queensland and the Northern Territory, and Neutral Junction will add substantially to their portfolio of property. Olivia Thompson from Nutrien Harcourts was appointed to handle the marketing process.
