Deals of the week – 10 May 2021


Deals of the week – 10 May 2021

National

 

COLD FOOD & FOOD DISTRIBUTION PORTFOLIO - $269.4 million

Charter Hall’s $6 billion wholesale industrial and logistics fund, CPIF, has announced the acquisition of a portfolio of 25 cold store and food distribution centres with an average 13.8-year sale and leaseback to leading food business, PFD Food Services for $269.4 million.

 

The Portfolio is located across Australia, with the majority of income derived from Victoria (55%) followed by Queensland (23%) and South Australia (10%) - 90% of the Portfolio (by value) is located in metropolitan industrial precincts. The Portfolio has a site area of approximately 292,665sqm and ~82,331sqm of GLA with a low overall site coverage ratio of 28% thereby providing CPIF with future expansion capability.

 

Charter Hall continues to be extremely active in the industrial market acquiring more than $2.5 billion in industrial and logistics facilities so far in FY21 and $6.3 billion in the past 3 years. Charter Hall’s total industrial portfolio now stands at $12.7 billion with a $2.3 billion development pipeline.

 

CPIF Fund Manager, Richard Mason, said “The portfolio provides access to a secure and growing income stream over the long term which is underpinned by a 13.8-year WALE with a double net lease structure and annual rent reviews of 2.8%. The acquisition also increases CPIF’s sector leading weighted average lease expiry (WALE) to 10.7 years.”

 

SELF-STORAGE PORTFOLIO - $147.7 million

Abacus Property Group has recently secured four additional Self-Storage facilities for $44.2 million and has also acquired and completed the purchase of the remaining 60% interest in The Oasis Centre, Broadbeach QLD from an affiliate of KKR for $103.5 million.

 

Three of the four self-storage centres were sourced via Storage King with one facility sourced off market, bringing their portfolio to a total of 962 locations, valued at approximately $1.3 billion. The newly acquired facilities are located in Adelaide (Windsor Gardens and Woodville North) and Sydney (Kirrawee and Revesby) and have an aggregate occupancy of 91.5%.

 

The Oasis Centre was originally acquired by Abacus (40% interest) and KKR (60% interest) in March 2015 for $103.5 million, with Abacus engaged to provide property management, leasing and development services at the asset. Since that time the asset has undergone repositioning that sees it now established with a diversified income stream, an occupancy of 96% and a weighted average lease expiry of 5.2 years.

 

 

New South Wales

 

THE PONDS - $26.035 million

A 2.5-hectare low density housing site within the Sultonesi Estate in Sydney’s western suburb, The Ponds, has recently traded under the hammer for $26.035 million.

 

Holding address at 54 Hambledon Road is master planned to allows for 51 individual lots; one plot is allocated to commercial development with the remaining 50 set for residential.

 

Cushman & Wakefield’s Yosh Mendis managed the deal in conjunction with Next Commercial’s Anthony Bray.

 

DARLINGHURST - $17 million

Darlinghurst’s The Strand Hotel has traded hands from Oscars Hotels to JAGA Group for a speculated $17 million.

 

Located on the corner at 99 William Street, the venue offers 25 accommodation suites, a gaming room with 21 electronic gambling machines and a 24-hour liquor licence. The premises were recently renovated receiving a $3 million upgrade. The incoming owners are reportedly going to pursue an application to build more rooms.

 

The deal was handled by JLL’s John Mosca and HTL’s Dan Dragicevich, Andrew Jollife and Sam Handy.

 

CRONULLA - $3 million

An investor has purchased a ground-floor trophy asset offered to the market for the first time since it was constructed in 2005 - 4/103 Ewos Parade in Cronulla sold under the hammer for $3 million.

 

This asset is located on the blue-chip South Cronulla peninsula, directly across the road from Shelley Beach. The winning bid went to a local investor as an addition to their existing portfolio.

 

The sale was handled by Ray White Commercial’s Brad Lord.

 

 

Victoria

 

PARKVILLE - $138.7 million

Dexus has splashed out $138.7 million for two mid-rise office buildings in Melbourne’s inner north.

 

Located on Royal Parade and Mile Lane, Building 404 and the Manning Building form part of a Monash University Parkville campus, servicing the Pharmacy and Pharmaceutical Sciences faculty. The buildings generate close to $6.24 million in annual rent and were sold with a WALE of 12.4 years.

 

CBRE’s Mark Coster oversaw the deal.

 

SOUTH YARRA - $35 million

A South Yarra retail and office complex has been picked up by Oreana Property Group in an off-market transaction worth near $35 million.

 

Known as South Yarra Square and located at 177 Toorak Road, the property was sold by 11 parties and contains two Victorian-style villas and a five-storey commercial building. The incoming owners are said to be pursuing a proposal for a luxury hotel, offices, wellness centre and retail, including restaurant spaces.

 

The off-market deal was negotiated by Emmetts’ Charles Emmett.

 

ABBOTSFORD - $27.3 million

A B-grade office in Abbotsford, situated on the banks of the Yarra River, has been picked up by EG Managed Property Funds for $27.3 million

 

Located at 675 Victoria Street, the three-storey building presents 3,743sqm of floor area with 115 car parks, and Icon as the anchor tenant.

 

Dawkins Occhiuto’s Andrew Dawkins managed the sale.

 

HEALTHCARE PORTFOLIO - $13.86 million

Owner occupiers have swooped on three vacant healthcare properties in Melbourne in the past three weeks. The sales in Ivanhoe, Brighton and St Kilda East amount to a combined $13.86 million, amid significant interest in sector.

A 5,345sqm residential facility at 405-413 Upper Heidelberg Road, Ivanhoe, headlined the sales at $8.62 million, sold by BlueCross Aged Care to an undisclosed international healthcare and residential services provider.

 

Clinics at 390 Bay Street, Brighton, and 338 Dandenong Road, St Kilda East, also changed hands, purchased by a local vet and GP respectively.

 

Each property was purchased by an owner occupier with plans for immediate occupation, or future occupation pending minor refurbishment and repositioning works.
 
CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto managed the transactions.
 
TARNEIT - $4.5 million

A 2.6-hectare low-density housing site with development approval for a 35-lot subdivision in Melbourne’s west has sold to Empire Properties for $4.5 million.

 

Holding address at 1273 Dohertys Road in Tarneit, the landholding sits between two prominent housing developments Dahua’s Orchard and LLT’s Verdant Hill. One lot will comprise of 3,094sqm and allows for a commercial project, including a childcare centre, gym, medical complex or small aged care community, while the remaining will be allocated for residential development.

 

The property was sold by NSL Property Group’s Guy Naselli.

 

LALOR – Undisclosed

A premium early learning investment has recently sold for an undisclosed amount in the high growth Melbourne suburb of Lalor - 18km north of the Melbourne CBD.

 

Located at Level 1, 53 Mosaic Drive (Mosaic Village) in Lalor, the investment features a 15-year lease to Nino Early Learning Adventures to 2033 plus options to 2048. The centre is located in the Mosaic Living Estate, a fully developed 650 lot estate with an expansive Baptcare Aged Care Facility and Retirement Living Community. 

 

Nino Early Leaning Adventures are currently located in 17 Melbourne locations.

 

CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat & Marcello Caspani-Muto managed the deal.

 

Mr Peluso said; “This is the 13th consecutive Nino Early Learning Adventures sale handled by our team. The lease covenant is always well received by investors as are most premium early learning offerings, meaning an established proven with multiple centres and a proven track record of success. “

 

 

Queensland

 

BRISBANE - $117.5 million

A Brisbane CBD office building has traded hands from Axis Capital to a Cromwell fund for $117.5 million. Located at 545 Queen Street, the A-grade 10-storey tower was originally purchased by the vendor in 2017 for $70 million.

 

Axis spent six months refurbishing and repositioning the tower after their purchase, ultimately filling the tenancies with Flight Centre, CSC International, McPherson Group and Sonic Healthcare. The tenancy structure has changed since with more than 90% emanating from government, as well as listed and multinational groups.

 

CBRE’s Peter ChappleBruce BakerFlint Davidson and Stuart McCann brokered the deal.

 

MACGREGOR - $17.5 million

A large format retail complex in Brisbane’s Macgregor has been scooped up by A-Mart Furniture founder John Van Lieshout for $17.5 million.

 

Located at 520 Kessels Road, the 1.11-hectare property holds 125 car parking bays and was sold fully leased, with a WALE of 3.84 years, secured by nine national and international tenants including Snooze, Mercedes Benz and Oz Design Furniture.

 

Knight Frank’s Christian Sandstrom and Justin Bond managed the deal.

 

NEWSTEAD - $5.7 million

Unison Projects has purchased a DA approved boutique residential scheme, just 2.5km from the CBD at 14 Maud Street, for $5.7 million. The incoming owner is the private property investment and development company of Queensland-based billionaire founder of Super Amart furniture John Van Lieshout.

 

The asset offered a prominent 1,821sqm site with 30m street frontage and has a mixed-use (centre frame) zoning under Brisbane City Council. The property was sold with a pre-approved DA for a nine-storey residential tower providing 52 apartments.

 

The property was transacted by Ray White Commercial’s Tom Barr.


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