Deals of the Week - 10th July 2023

Pictured above: Novotel and ibis Hotel, Melbourne Central

Victoria

MELBOURNE - $170 million

In one of the largest hotel deals of the decade, the Novotel and ibis Melbourne Central has been sold by CBRE Hotels' Wayne Bunz and Scott Callow on behalf of Singaporean firm, Well Smart Investment Holdings in an off-market deal.

The double-branded hotel was purchased by Worldwide Hotels Group subsidiary and also Singaporean firm, Legend Land, and was built in 2018 as Australia's first double-branded hotel. The hotel comprises of 259 lower-level ibis rooms, and a 213 Novotel room component, along with guest amenities including two restaurants, a bar, conference and meeting spaces.

CBRE Hotels’ National Director Wayne Bunz said the latest Melbourne deal evidenced the confidence international capital sources had in Australia’s hotel market, given its safe-haven status and ability to provide a strong inflationary hedge. 

ALTONA - $14.6 million

Colliers’ Daniel Telling, Nick Saunders and Hugh Gilbert have, together with Transaction Advisor David O’Callaghan from O’Callaghan Commercial, successfully transacted a 6,733 sqm industrial property in Melbourne’s Altona for $14,600,000 on a 4.8% yield. 

Purchased by a private investor, the modern distribution centre is fully leased to the leading design and manufacturer of high-quality workwear, footwear and PPE, Portwest Pacific, who have committed to a 5-year lease, generating a passing net income of $706,955.

CRANBOURNE EAST - $7.425 million

RPM's Zaynoun Melham and Ed Wright sold a 2.92Ha land site at 4 Nelson Street on behalf of a private Victorian family in an off-market transaction.

The site was purchased by property development firm, Solovey, and came with PSP approval within the Cranbourne East PSP for residential, with a permit approval for 54 lots.

COLLINGWOOD - $1.7 million

The home of a late-night mainstay on Smith Street has sold for $1.7 million, on a sharp 3.7% yield. 

Fitzroys agents Shane Mills and Ervin Niyaz sold 74 Smith Street, home to Smith Kebabs, on behalf of a private investor. The sale price reflected a rather high land rate of $11,258/sqm. A local private investor was the purchaser.

The property comprises a three-storey 170 sqm freehold building with a ground-level takeaway kebab restaurant, basement preparation and storage and bedrooms on the upper level. It was offered with more than five-and-a-half years remaining on the lease with a five-year option to longstanding tenant Smith Kebabs, currently returning $67,237 p.a.

MALVERN - $1.65 million

Fitzroys Lewis Waddell and David Bourke sold 260 Glenferrie Road, for $1.65 million on a tight 4% yield and a high building rate of $9,700 per sqm. 

Waddell and Bourke generated more than 70 enquiries during the campaign and managed on behalf of local business partners that were long-term owners of the property. 

Located in a high-profile spot, near the intersection of Glenferrie Road and High Street, the 170 sqm double-storey building was offered with a ground-floor lease to The Master Cobbler and the first-floor lease to Malvern Psychology. A local investor purchased the property. 

NORTH MELBOURNE - Undisclosed

An overseas investor has purchased a heritage-listed church built in 1879, as well as its manse, terraces, halls and office building. 

The 4,882 sqm landholding at 49-61 Curzon Street & 579-599 Queensberry Street was sold by JLL's Jesse Radisich, Josh Rutman, MingXuan Li and Nick Peden on behalf of the Uniting Church of Australia. Interestingly, this church is where the Labor Party split for the third time in 1955.

Queensland

NOOSA - $12 million

Trident Property Advisory, in a joint venture with Cancer Care Associates, has purchased a premium Noosa medical development site for $12 million.

The 8,000 sqm Hofmann Drive site has approval for a major medical precinct, which will provide a large cancer care clinic including radiation oncology, along with a range of specialist medical services. 

CBRE Sunshine Coast’s Louisa Blennerhassett brokered the deal in an off-market transaction, achieving a sale price of $1,500/sqm.

Western Australia

 COCKBURN CENTRAL - $6 million

A medical centre in Perth’s southern corridor has sold for $6 million.

The property at 850 North Lake Road in Cockburn Central consists of a significant landholding of 9,242 sqm occupied by a purpose-built medical centre constructed in 2005 with a total lettable area of 705 sqm, 55 parking bays and approximately 5,650 sqm of excess developable land to the rear.

The property was purchased by the Tseriotis Family from Australia’s east coast from a private West Australian family in the medical industry in a deal negotiated by Tony Delich and Cory Dell’Olio of Knight Frank. 

KEWDALE - $5.7 million

An owner-occupier has snapped up a prime industrial site in Perth via an off-market deal.

The property at 15 Hodgson Way in Kewdale, in Perth’s east, was purchased by a state-wide transport and logistics business for $5.7 million plus GST from a private investor in a deal negotiated by Knight Frank's Tom Iredell.

The business is planning to move from its current location at Welshpool, which it currently rents, to the Kewdale property.