Deals of the week – 24 SEPTEMBER 2018

September 2018
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Deals of the week – 24 SEPTEMBER 2018


Search for more development sites in Victoria here.

MELBOURNE - $160 + $70 million
Two neighbouring properties at the top end of Melbourne’s prestigious Collins Street, belonging to separate owners, have been sold to Dexus for a combined purchase price of $230 million.

The buildings at 60 and 52 Collins Street are set to be amalgamated for a $650 million new office development spanning the combined 35,000sqm.

Dexus’ Darren Steinberg has said, “These acquisitions provide us with a presence in the tightly held 'Paris end' of Collins Street in the Melbourne CBD," 

"They also present us with a unique opportunity to undertake an office development creating long term value for investors in the next supply cycle, in a prime location where we receive significant enquiry from our customer base."

BURWOOD EAST - $25.5 million
An offshore Chinese investor has secured a VicRoads Office Building in Burwood East for $25.5 million.

The property at 12 Lakeside Drive, Burwood East, was previously owned by the Myer family and includes a three-level office building of 4,509sqm. It sits on a large 1.7 Ha site within the Tally Ho business park with VicRoads recently committing to a new three-year term to mid-2021.

“Investors are choosing to put additional equity into deals of this nature, given their confidence in the long-term prospects for the Melbourne office market," CBRE's Scott Orchard, one of the agents responsible for the sale, has said.

Mr Orchard brokered the deal with CBRE colleagues Kiran Pillai, Josh Rutman, and Lewis Tong.

CREMORNE - $7.1 million
A local private purchaser secured four adjoining terrace houses in Cremorne in a hotly contested auction that started bidding at $6.3 million and ended at $7.1 million. The property at 102-106 Stephenson Street in Cremorne comprised of 546sqm and zoned Commercial 2.

Ben Baines, one of the Colliers International agents responsible for the sale, said that "Interest for the site was extremely strong with a mix of prominent Cremorne developers, emerging development groups as well as owner occupiers looking to construct a new premises for themselves."

Mr Baines also noted that Melbourne’s city fringe commercial office market was one of Australia’s best-performing commercial markets. “This is largely due to the considerable rental growth we have seen in this precinct, combined with yield compression that is being driven by the demand outweighing supply”

Mr Baines managed the sale at auction with Colliers International agents Ted Dwyer and Andrew Ryan.

RICHMOND - $5.85 million
A commercial property at 45 Vere Street in Richmond has recently sold for $5.85 million to a local private developer.

The 1,560sqm site was originally held by a local family for 25 years and houses two properties; a 323sqm warehouse/office and an older 1,000sqm building. The property was marketed with redevelopment potential.

Teska Carson's George and Larry Takis handled the sale.


New South Wales

Search for more development sites in New South Wales here.

ALBURY - $5.18 million
The last of a 15 Good Guys outlet portfolio has been sold by Andrew Muir for $5.18 million to a NSW Central Coast investor. This sale rounds out the collection which reached a combined total of over $150 million in sales.

"Investors are desperately seeking well-located retail properties with long leases and attractive rental yields, and are prepared to look beyond the major metropolitan areas to meet their purchase objectives," lead agent Clint Baxter said.

The 2,910sqm property at 437 Young Street in Albury is reported to bring in $440,000 in net rent.

Mr Baxter sold the properties with Savills colleagues Nick Peden and Jesse Radisich.

REDFERN - $2.985 million
A recently refurbished Victorian terrace boarding home has recently sold for just shy of $3 million. In April 2017, the same property sold for $2.3 million.

The four-storey property at 773 South Dowling Street, is approved for use as an 11-room boutique student home. Three of the 11 rooms have ensuites and is anticipated to draw approximately $175,760 of GAR on a fully leased basis.

The property was sold at auction by Dominic D’Ettorne of D’Ettorne Real Estate.



Search for more development sites in Queensland here.

FORTITUDE VALLEY (QLD) & Wetherill Park (NSW) - $282.4 million ($170 million & $112.4 million)
Arkadia Capital Group's Greg Karedis has recently purchased a Homemaker centre in Brisbane's Fortitude Valley for $170 million as part of a $282.4 million divestment of homemaker centres from Altis Property Partners on behalf of First State Super.

The subsequent Homemaker Greenway and Greenway Plaza in NSW was sold to a private investment mandate managed by Aventus Property Group for $112.4 million.

JLL's Australasian head of retail investments, Simon Rooney, handled the sale of both homemaker centres – referred to as ‘large format retail’ (LFR) – and said,

“Investors are attracted to LFR because of the gradual evolution of the sector as tenant profile diversifies and for the long-term future redevelopment potential that the sector offers. In addition, key tenants that occupy space in large format retail centres are expanding, which is driving leasing activity and supporting income returns.”


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