Abacus sells four sites worth $31m - Queensland Property Investor
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Abacus sells four sites worth $31m

Abacus sells four sites worth $31m

Abacus Property Group is making good on its promise to exit residential projects.

The Steven Sewell-led funds manager has offloaded three residential development projects and a development site with a combined book value of $31 million.

The deal, expected to settle in June, has resulted in Abacus offloading the three sites in Melbourne and one in Queensland to an offshore developer.

The properties include an eight storey, $180 million apartment complex at 512-544 Spencer Street in West Melbourne on which Abacus was undertaking a joint venture with Lechte Corporation and Crema Group that included a 2100 square metre supermarket.

Another property offloaded was a controversial development in the Brisbane suburb of Alderley which Abacus successfully got rezoned from industrial to residential despite significant opposition from residents.

The 4.6 hectare Newmarket Brickworks site at 95-117 Mina Parade will be bulldozed to make way for 51 two-storey townhouses and 287 units across a building between two and five storeys.

Another permitted site is at 410 Smith Street, Fitzroy, one of Melbourne’s trendiest inner-city enclaves.

The group has also offloaded a site at 10-12 Hampstead Road, in the inner-west Melbourne suburb of Maidstone, itself undergoing a gentrification-led renaissance.

“This divestment demonstrates delivery of Abacus’ strategic objective of reducing exposure to residential,” Abacus said in a statement.


The settlement proceeds will be used to reduce debt, the group said.

Mr Sewell, who took over last year from industry veteran Frank Wolf, has said Abacus will grow its exposure to the self-storage sector and reduce its reliance on residential.

The deal reduces its residential holdings to just two remaining assets.

Last year it purchased an office tower at 464 St Kilda Road in Melbourne for $47.7 million in a 50-50 joint venture with Singapore’s Wing Tai group.

Other recent purchases include Sydney’s oldest cinemas, the historic Metro Theatre at 28-30 Orwell Street in Potts Point, which Abacus settled for $19.8 million.



Source: www.brisbanetimes.com.au

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Canute Retires $140m Cross-Country Portfolio

Canute Retires $140m Cross-Country Portfolio

Family-owned Canute Investments Limited has listed a range of properties in Queensland and Western Australia for $140 million citing retirement as the reason for the divestments.

The assets include three fully-leased neighbourhood shopping centres – Logan Village shopping centre and Ormeau Village in Queensland as well as Carramar Village in WA – a commercial building in Perth, and an 84 property residential portfolio in WA.

The 4,700sq m Woolworths Ormeau is located 35 kilometres north-west of Surfers Paradise. It comprises a Woolworths supermarket and six specialty stores and sits on an 8,607sq m site.

Logan Village, also with a Woolworths Supermarket, is 48 kilometres south-west of Brisbane and sits on a 1.2-hectare site.

Both centres are currently on separate 20-year leases drawing fully leased net incomes of $926,000 a year for Logan Village and $1,715,000 a year for Ormeau Village.

Canute Retires $140m Cross-Country Portfolio 1

The 5,294sq m Carramar Village shopping centre, in Perth’s northern suburbs, is anchored by a Woolworths supermarket and has parking for 300 vehicles. It has a fully-leased net income of $2,050,000.

The WA residential portfolio comprises 84 residential properties, featuring a fully-leased gross income of $1,536,000 – all available in one-line and alongside an aligned property management business.

Canute’s 2,591sqm office building at 13-15 Rheola Street in West Perth offers medium-term redevelopment opportunity and a fully-leased net income of $975,400 per annum.

CBRE’s Richard Cash, Anthony Del Borrello, Ben Younger and Derek Barlow have been appointed to market the WA assets while Joe Tynan and Michael Hedger have been appointed to market the Queensland shopping centres.

“These market conditions, combined with the compelling investment fundamentals of these properties, are expected to ignite interest from local WA investors, national groups and offshore parties,” Cash said.

Hedger said the Queensland shopping centres, with long weighted average lease expiries of more than 12 years each, offered potential investors good income security.

“Both investment opportunities are located in two of Brisbane’s highest-growth residential corridors, which are expected to see double digit growth within their respective main trade areas while also allowing opportunity for development and expansion.”



Source: theurbandeveloper.com

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Brisbane CBD Tower Approved for $25m ‘Repositioning Play’

Brisbane CBD Tower Approved for $25m ‘Repositioning Play’

Brisbane city council has approved a $25 million redevelopment of a 28-storey Brisbane CBD tower located near central station.

Since settling on the 288 Edward Street asset, joint venture partners Brisbane-based Marquette Properties and offshore partners Heitman and EGW embarked on a major refurbishment to reposition the tower.

The Edward Street asset changed hands for the first time in 25 years in March when the JV team settled on the property for $113.6 million.

The new BVN-designed redevelopment will see the building repositioned from a B-grade asset to an A-grade commercial tower known as Highpoint.

Brisbane CBD Tower Approved for $25m ‘Repositioning Play’ 1

Hutchinson builders have already commenced work on the tower’s refurbishment slated for completion in 2020.

Under its business model to buy, fix and sell, Marquette Properties along with Moelis Australia Asset Management recently sold its 164 Grey Street property in Brisbane’s South Bank to Sydney-based VennCap for $44.6 million after purchasing the asset for $30.3 million in 2017.

Marquette managing director Toby Lewis described the Edward Street project as another “repositioning play” building upon the group’s experience on recent CBD projects.

“The architecture and new branding both aim to ensure the asset will be very different from what we bought, to when we go to sell the asset in the medium term,” he said.

Lewis said more than 90 per cent of the building has been leased with CBRE appointed as the exclusive leasing agents, and anchor tenant Concentrix committing to 13 floors of the building.

Marquette manages more than $300 million of commercial and retail assets across South East Queensland.

Property investment giant Heitman, headquartered in Chicago, picked up the K1 office tower in Brisbane’s Fortitude Valley from Melbourne syndicator Impact Investment Group in 2018.



Source: theurbandeveloper.com

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Brisbane Office Market Vacancy at Six Year Lows

Brisbane Office Market Vacancy at Six Year Lows

Solid demand for office space continues to see vacancy rates fall, with the Brisbane CBD now at its lowest level of vacancy since 2013.

Brisbane recorded approximately 16,000sq m of commitments across its CBD and metro regions in the first half this year.

Vacancy across the CBD dropped from 12.9 per cent to 11.9 per cent over the first half of 2019.

While vacancy in Brisbane’s fringe fell from 15.7 per cent to 13.8 per cent over the same period, reveals the Property Council of Australia’s latest Office Market Report.

A-grade stock located on Brisbane’s fringe has seen increasing demand over the first half-this year, particularly for A-grade assets.

“The Brisbane office market is clearly in the midst of a good recovery, with confidence that demand will continue to grow and strong investment underway in new office projects,” Property Council Queensland executive director Chris Mountford said.

Flexible working

Despite the lack of available large scale space, flexible workspace operators are expected to add to the reduction of Brisbane’s vacancy rate through 2019 and 2020.

Colliers International forecasts that co-working operators could take up approximately 28,250sq m of space in the CBD this year.

“Major players in this space such as IWG and WeWork are expanding within Brisbane as the competitive rents allow them to make a bigger footprint for less capital expenditure,” Colliers International associate director Nick Davies said.

“With a substantial number of new office developments which have been approved or looking for pre-commitment, operators will be looking to take pre-commitment for this space that is due for completion around the late 2021 to late 2022, such as Midtown Centre, 80 Ann Street and 360 Queen Street.”

US co-working operator WeWork secured its third Brisbane location last week, with two floors of 25 King Street on Brisbane’s city fringe suburb Fortitude Valley.



Source: theurbandeveloper.com

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