Undeterred by a slowing retail sector, CVS Lane Capital Partners and Consolidated Properties Group has expanded its retail portfolio purchasing the Arndale Shopping Centre south of Brisbane for $35.5 million.
The partners say they have plans to invest up to $25 million in structural and cosmetic upgrades of the Coles-anchored centre located in Logan suburb of Springwood, around 20-kilometres south of Brisbane CBD.
Consolidated Properties Group, led by Don O’Rorke, described the buy as a “strategic fit” for the partnership, eyeing the centre as an underperforming neighbourhood centre in a growth area.
“The previous owner of Arndale Shopping Centre held the asset for 24 years and we saw the opportunity to create a contemporary retail environment with a high quality grocery, food, medical, health and wellbeing offering,” O’Rorke said.
The centre, which opened in 1974, spans a 3.4-hectare site, and fronts the M1 Freeway.
Colliers International’s Stewart Gilchrist brokered the transaction.
O’Rorke said that renovation work is expected to take 12 months with plans to kick off later this year.
“Springwood is the central business district of Logan and therefore retail demand is underpinned not only by a growing resident population but also a thriving business community,” he said.
The retail partnership has invested in four neighbourhood centres across South East Queensland and northern New South Wales over the past five years, including shopping precincts in Ipswich’s Karalee, Toowoomba’s Wilsonton and Gold Coast’s Palm Beach.
“All of which are fast growing areas with a need for updated retail amenity, much like Springwood,” CVS Lane Capital Partners chief executive Lee Centra said.
The duo are currently delivering an $850 million development project, Yeerongpilly Green, which spans a 14-hectare site five-kilometres south of Brisbane CBD.
O’Rorke’s Consolidated Properties is also on the proposal behind Kelly Slater’s $100 million surf ranch in a move that would see it partner with the World Surf League for the major project at Coolum on the Sunshine Coast.
Jerry Schwartz Snaps Up Ralan’s Paradise Resort for $43m
Hotel mogul Jerry Schwartz has secured the Gold Coast’s Paradise Resort, a former asset of collapsed property developer Ralan Group, for $43 million.
Ralan Group, which went into administration in August, paid $75 million for the hotel in 2015, and had plans to bulldoze the resort for three towers of Ruby apartments.
Schwartz says he plans for a major refurbishment to upgrade the 360-room hotel which spans a 2.5 hectare site in Surfers Paradise.
“I am very optimistic about the Gold Coast market, despite new supply coming on stream,” Schartz said of his latest purchase which settles in February next year.
The latest buy marks Schwartz second hotel on the Gold Coast following the acquisition of the five-star Hilton Surfers Paradise for $70 million from Chinese Group Ja Feng in January.
Speaking on his refurbishment plans, Schwartz said the resort offered “upside potential”.
“I know that previous owners planned to knock down the resort and redevelop it for apartments,” Schwartz said.
“But we believe there is tremendous demand for quality family-friendly resorts, especially in such prime locations as Surfers Paradise.
“I have taken over two other resorts – the Fairmont Resort Blue Mountains and Crowne Plaza Hunter Valley – and revived them as a result of diversifying their markets.”
Schwartz is Australia’s largest private owner of hotels, with the latest buy expanding the Schwartz Family Company’s portfolio to 15 hotels.
The portfolio also includes the Four Points Sheraton at Central park in Sydney, the Sofitel Darling Harbour, and Rydges World Square.
Ralan Group, led by director William O’Dwyer, went into voluntary administration earlier this year leaving apartment buyers at risk after investigations found a shortfall of $277 million in the developer’s trust account for deposits.
Last week, Ralan’s receivers put the Sapphire site, a whole city block located on the fringes of Surfers Paradise, on the market.
Ralan had purchased the 11,470sq m city block site also in 2015 for just under $20 million.
Vacant investment development draws southern buyers to Queensland
The entire retail component of The Mill Central Precinct’s first mixed-use development has been sold.
Brocke Hambrecht of the Ray White Commercial Northern Corridor Group managed the sale.
All units were purchased off-plan by southern investors.
The complex, comprising 28 residential units and five strata retail tenancies, is the first of its kind within the new Mill Central Precinct.
Ray White Commercial Northern Corridor Senior Investment Analyst Ashley Rees believed this was a sign of a new trend in commercial investment for the region.
Mr Rees said, “we expect to see more of this speculative investment into vacant properties.”
“Competition is just too fierce for the traditional secure investments,” he concluded.
The Oasis, Broadbeach listed for sale
The Oasis, Broadbeach, one of South East Queensland’s biggest mixed-use buildings, has been listed.
The 1989 built property features 24,399 square metres of net lettable area.
It underwent substantial renovations in late 2018.
The three-level centre features 16,909 square metres of food and beverage-based retail, 7,490 square metres of commercial space, and 998 car spaces.
The property has been listed by JLL in conjunction with McVay Real Estate.
They noted the area was experiencing a significant wave of residential apartment development with nine projects totalling 1,288 apartments either approved or under construction.
Offers close November 7.
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