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QIC Carves Off 50pc Stake in Westfield Helensvale

QIC

Fund manager QIC will test the retail market by offloading its 50 per cent share in a Gold Coast shopping centre.

The half stake in Westfield Helensvale is expected to be worth more than $200 million with Scentre Group owning the other share.

The centre was built in 2005 on a 17.27ha site in the Gold Coast growth corridor at 1-29 Millaroo Drive, just off the Pacific Highway.

Major retailers Woolworths, Coles, Aldi, Kmart and Target account for 88 per cent of the total GLA which is approximately 44,800 square metres.

QIC

▲ Westfield Helensvale is located in the Gold Coast’s growth corridor, just off the Pacific Highway. 

CBRE’s head of retail capital markets Simon Rooney said retail fundamentals were continuing to improve so this offer would test the market.

“We expect this strategic 50 per cent stake in Westfield Helensvale to be competitively contested, as regional assets of this nature are traditionally tightly held and rarely traded,” Rooney said.

“The centre’s high productivity, robust performance and solid rebound after Queensland’s Covid lockdowns will help drive competitive investor interest, as will the asset’s strategic growth corridor location, high customer spend and surrounding significant transport infrastructure.”

The latest large-scale shopping centre transactions involved the Lederer Group’s $300 million NSW portfolio and YFG’s two-stage purchase of Mt Ommaney shopping centre in Brisbane for $380 million, which finalised in early 2020.

In 2019 Scentre Group acquired a 50 per cent stake in Western Australia’s Garden City centre for $575 million.

 

Article Source: www.theurbandeveloper.com

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Brisbane

Ascendas Sells $125m Australian Logistics Portfolio

Ascendas

Singapore’s largest listed owner of industrial and office property, Ascendas’ Real Estate Investment Trust, has sold three assets in Queensland and Victoria for $125 million.

A Coles warehouse and a neighbouring warehouse at Heathwood, south of Brisbane, were sold for $101.6 million to Arrow Capital Partners’ $1-billion logistics investment fund, Strategic Industrial Real Estate with Altis Property Partners.

The latest acquisition, which is due to complete later this year, comes in the wakes of two logistics asset acquisitions in the Irish capital Dublin recently.

The Heathwood warehouses are in the Brisbane South Industrial Park. The 35,000sq m Coles logistics warehouse at 82 Noosa Street will be vacant later this year as the retail giant moves its operations to a purpose-built facility at Redbank.

Ascendas also divested a 16,134sq m warehouse and office space at 1314 Ferntree Gully Road in Melbourne via a unit sale agreement to China Tube and Haelram worth $23.5 million.

In a statement to the Singapore Exchange Ascendas REIT said: “The proposed divestments are in line with the Manager’s proactive asset management strategy to improve the quality of Ascendas REIT’s Australian portfolio and optimise returns for unitholders”.

“The total sale price of $125.1 million is approximately 16.8 per cent higher than the total market valuations of the properties of $107.1 million as at 31 December 2020.”

The proposed divestments are expected to complete in the third quarter of 2021.

Ascendas REIT is part of CapitaLand, which owns industrial assets in Singapore, Australia, the United States and Europe.

 

Article Source:www.theurbandeveloper.com

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Brisbane

Hong Kong investor splashes out $19.5m on office

investors

Who says the office is dead? Despite the many obituaries written for the office in the past 12 months, investors are undeterred.

This week, a Hong Kong investor splashed out $19.5 million on Beams Projects’ new office in Richmond.

The freshly leased building at 45 Wangaratta Street was snapped up in a deal reflecting a highly competitive 3.7 per cent yield with only a 21 day settlement.

Records show Cheerich Property, the local subsidiary of Hong Kong ragtrader Cherry Body Fashions, slapped a caveat on the property during the week.

The boutique 1413 sq m office project was built over the old Duchamp clothing warehouse in the old ragtrade precinct behind Richmond railway station and the Corner Hotel.

It’s now called the Richmond Interchange Precinct. The property sits on just 368 sq m reflecting a building rate of $13,829 a sq m and a land rate of $53,100 a sq m – new benchmarks for the city fringe office investment market.

A year ago, an old double-story factory at 32 Wangaratta Street on 629 sq m sold for $8.8 million. Records show it was bought by the Benjamin Duncan Property Group.

JLL agents Josh Rutman, Piers Jalland, Tim Carr and MinXuan Li ran the campaign which attracted more than 150 enquiries from local private investors, syndicates, and owner occupiers.

“The fact that the building continued to lease up well during the height of pandemic last year resonated well with buyers given the continued debate about the return to the workplace,” Mr Carr said.

Family Court

A cashed-up private investor has agreed to pay $12 million for the Dandenong Family Court building, despite the court’s lease expiring in 2023.

The uncertainty over the lease, especially as the court recently merged with the Federal Court, kept the yield comparatively high at 6.5 per cent.

Sources say it can be difficult to get bank financing at that kind of yield so the buyer is likely to have deep pockets.

The 2729 sq m office at 53-55 Robinson Street has been a family law court since the mid-1980s.

The Commonwealth government’s lease runs out in July 2023 and there are no further options. Annual rent is $782,413 a year.

The deal was done by Gross Waddell ICR’s Alex Ham and Michael Gross with CBRE’s Scott Orchard, Scott Hawthorne and Jimmy Tat.

Mr Orchard said the uncertainty stopped the transaction achieving the sharp yields usually obtained by government-leased buildings.

A Family Court representative told Capital Gain there were no plans to move.

City fringe

A family-run boutique student accommodation building on the city fringe has been listed for sale as the flow of international students dries up.

 investors

57-65 Drummond Street, Carlton 

It is understood the 43-room property, known as Albert House, has just four students living in its dorms.

The 1600 sq m three-storey building at 57-64 Drummond Street was configured into accommodation in the 1990s but it started out as offices for the Australian Workers Union.

Records show the AWU sold up in 1997 for $1.05 million. It’s expected to fetch more than $10 million.

Expressions of interest, closing on July 1, are being handled by Gross Waddell ICR agents Raff De Luise, Julian Materia and Danny Clark.

The property is on a 604 sq m site near the corner of Queensberry Street and has room for 10 car parks.

Meanwhile, bigger players like Scape are planning towers for the Carlton precinct to house the students expected to return in the future.

Wizel buys

Former CBRE agent Mark Wizel, who struck out on his own last year, establishing the Wizel Property Group, is ramping up his activities.

Two shops opposite Fairfield railway station owned by Mr Wizel have been leased to Burgertory and the Bean Smuggler.

CBRE agent Jason Orenbuch said the 92 sq m and 98 sq m shops at 7-9 Railway Place, the foot of a new apartment building, were leased on 10-year terms.

Mr Wizel has been a keen investor in new strata title retail and confirmed he also owns around 150 sq m of space in Caulfield.

In Prahran, Wizel Property Group’s Lewis Tong made the winning bid of $5.2 million for a two-storey shop at 257 Chapel Street on the corner of Greville Street – a sharp yield of 3.35 per cent yield.

Mr Wizel did not return calls so it’s not clear if the group was acting as buyer or buyer’s representative.

Gross Waddell ICR agents Michael Gross and Andrew Waddell handled Thursday’s auction on the eve of lockdown.

The sale was struck at a building rate of $8228 a sq m and a land rate of $10,505 a sq m. There are offices on the first floor and the long-running discount store Supa Bargains on the ground. It returns $230,000 a year from leases expiring in 2026.

Two bidders competed in front of a crowd of around 40 for the property.

By Friday, auctions were back online and the Oreana Group paid $13.15 million for a row of faux Tudor shops at 169-175 Toorak Road. It adjoins South Yarra Square which it purchased for $35 million last month.

Faux Tudor

Speaking of faux Tudor shops and Prahran, a row opposite Prahran Market at 182-194 Commercial Road is expected to sell for $8 million.

investors

The faux Tudor shops at 182-194 Commercial Road are expected to sell for $8 million. 

The shops, leased to Red Cross, Mediterranean Butchers, Rare Earth Hair, Eugenie French Cake Shop and Carpe Diem Bar, are on 1130 sq m of activity centre zoned land which could allow for a five-to-seven level tower.

They return $380,000 a year in rent. Sonebridge agents Rorey James, Julian White, Nic Hage and Chao Zhang are handling the auction.

Castlerock sale

A regional syndicate associated with fund manager, Castlerock, is selling a Spotlight store in Sale.

The Gippsland Spotlight, has been held by the syndicate since 2004. It’s managed by Castlerock whose founder, Gippsland born-and-bred Hank Bronts, is also a member of the syndicate

Spotlight, a tenant of 30 years, has signed a fresh 10-year lease on the 216-228 Raymond Street property. Total income is $287,000 a year.

The 1908 sq m building is on a 6774 sq m site in the middle of town and expected to sell for more than $3.5 million.

Expressions of interest close on June 23 through Stonebridge agents Rorey James, Nic Hage, Kevin Tong and Justin Dowers.

 

Article Source: www.brisbanetimes.com.au

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Brisbane

Inner-Brisbane Development Site Hits The Block

A substantial blue-chip block of land in inner-city Brisbane has hit the block for the first time in 60 years.

The Alex Gow Funerals property is a 5272sq m mixed-use development site at 56 Breakfast Creek Road, Newstead.

Savills national director Peter Tyson said the site was a “high-profile gateway location” to the city in Brisbane’s affluent inner-north.

“The Newstead—Teneriffe—Fortitude Valley axis has arguably become the most desirable development destination in inner Brisbane and is within walking distance to the Gasworks retail and restaurant precinct,” he said.

“Sites of this scale with wide-ranging mixed-use potential in such prime locations are increasingly rare and this site will be seen as a trophy opportunity by residential and commercial developers alike.”

Brisbane

▲ Alex Gow Funerals was originally based in Queen Street, but moved to the site at Newstead in 1963. Image: Alex Gow Funerals 

Savills director of commercial sales in Brisbane Robert Dunne said the site occupied a commanding position on the corner of Breakfast Creek Road and Dunlop Street with “enormous exposure” to passing traffic.

He said the site was close to public transport and offered a high level of amenity for future development projects.

“Newstead has an industrial-chic vibe featuring stylish bistros, dates and craft breweries including other landmark precincts such as James Street and Brisbane’s new Mercedes headquarters,” Dunne said.

Breakfast Creek is undergoing substantial urban renewal of the former industrial hub. Churchill Developments recently lodging an application to develop an eight-storey mixed use building further down the road.

It is understood Alex Gow Funerals, Queensland’s first funeral business, bought the site and moved there in November, 1963.

The “ultra-prime” site offers building potential for residential apartments, retirement and aged care, education and health care, commercial and retail development.

Savills will market the site via an expressions of interest campaign that will close on July 15.

 

Article Source: www.theurbandeveloper.com

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