Deals of the Week - 6th June 2022

Victoria 

WEST MELBOURNE - Circa $35 million 

The high-powered consortium behind the Hotel Continental in Sorrento has offloaded a near-new hotel, amid legal proceedings with its former operator, TFE Hotels. What was formerly known as the Adina Hotel has been purchased by a Tasmanian-based investor who intends to continue operation of the venue as a hotel. The vendors included developer Trenerry Property, the Victor Smorgon Group, and the Kanat Family.  

The sale of the landholding was brokered by Paul Jones of Jones Real Estate, in conjunction with Anthony Kirwan of Colliers International. 

MILL PARK - $20 million 

A Mill Park warehouse currently leased to ASX-listed juice maker, The Food Revolution Group, has sold for $20 million, only three years after the same landholding was purchased by a group of private investors for $12.75 million. The 2.44-hectare property at 20 Heaths Court was sold for a 4.25% net passing yield, and comes with a tenancy agreement that calls for 3% annual rent rises.  

The sale was arranged by Jones Real Estate’s Paul Jones.  

BALWYN - $5.6 million 

The Belmore Plaza, at 399 Belmore Road in Balwyn, has sold to a local investor backed with Asian capital. Encompassing eight titles, Belmore Plaza is comprised of a two-storey, 867 sqm building on a 1,205 sqm land parcel with flexible Commercial 1 zoning. With a diverse range of tenants, the campaign proved popular, as the property generated over 110 enquiries from investors and value-add buyers prior to being sold at auction. The sale was brokered by Fitzroys’ Shawn Luo, Chris James and David Bourke.   

CREMORNE - $19 million 

The Salta Property Group have acquired a building block in the Yarra River-adjacent suburb of Cremorne, purchasing 122-128 Dover Street off of City Ford Properties. This comes as Salta are concluding development on their Industry Lanes mixed-use project in Richmond. The 1,786 sqm Commercial 2 zoned plot is currently occupied by two warehouses that were formerly home to a service centre and a Burson Auto Parts outlet. The sale was conducted by Sutherland Farrelly’s Paul Sutherland and Paul Farrelly. 

CAMPBELLFIELD - $41 million 

The US-based Cabot Properties has purchased 131-149 Somerton Road in Campbellfield, representing Cabot’s fifth acquisition in Australia, alongside two projects in Truganina and two projects in Melbourne’s south east. The property is a 9.32-hectare industrial site, and was purchased from Milemaker Petroleum founder, Nick Andrianakos, who has held the landholding since 1993. Cabot intends to replace the largely vacant space with a $130 million business park comprised of approximately 55,000 sqm across three buildings.   

The off-market deal was brokered by Daniel Eramo and Joe Brzezek of CBRE. 

New South Wales 

NORTH SYDNEY - $75 million  

The Singapore boutique investment and asset management company High Street Holdings has purchased Rydges North Sydney. Located at 54 McLaren Street, the 167-room, 4 star hotel occupies a 2,549 sqm freehold in one of Australia’s largest corporate catchments, and sits in close proximity to the upcoming Victoria Cross Metro Station, which will better connect the hotel directly to the Sydney CBD.  

CBRE Hotels’ Michael Simpson and Wayne Bunz negotiated the sale on behalf of Event Hospitality & Entertainment. 

BATHURST - Circa $6 million 

Jack Duggan’s Irish Pub in Bathurst has sold to a regional-based hotel group for more than $6 million, reportedly reaching its guide price. The vendors, Glyn and Helen Daunt, owned the venue in conjunction with Peter and Shannon Barrett, and took the property to market with Leonard Bongiovanni, the director of Sydney-based MQ & Associates. The pub is a period-style facility with a lively front bar, large bistro and commercial kitchen. The new owners intend to conduct minor upgrades before leasing out the property.  

NEWCASTLE - $60.25 million 

ASX-listed Centuria have continued their strategy of aggressive acquisition by purchasing the Cameron Park Plaza in Newcastle, from the Woolworths Group’s development business, Fabcot. The 7,037 sqm shopping centre is anchored by a Woolworths outlet, alongside a variety of specialist stores and two kiosks. The site comes with flexible B2 Local Centre zoning, and attracted over 180 purchaser enquiries during an on-market Expressions of Interest campaign. The sale was secured by James Wilson and Alex James-Elliott of Colliers.  

The acquisition comes as Centuria consolidated their industrial portfolio in Perth's Canning Vale and Adelaide’s Direk, with purchases of two separate development blocks.   

Queensland 

BRISBANE CBD - $82.2 million 

The luxury watch retailer, The Hour Glass, has purchased a freehold property in the Brisbane CBD. The vendor, Dexus, originally acquired the building at 171 Edward Street back in mid-2019. The two-storey retail and office building a total net lettable area of 2,030 sqm on a site of approximately 1,521 sqm, and is situated at the junction of Edward Street and Elizabeth Street, within the main luxury retail precinct in Brisbane’s CBD. 

TOOWOOMBA - $16.3 million 

In an off-market transaction, a Melbourne-based private investor has purchased Highfields Plaza in Toowoomba. The William Silverman-led Whistle Funds Management divested the property for a passing yield of 4.86%. Housing a Coles supermarket and 11 specialty tenancies, the centre contains 4,253 sqm of retail space, and is poised for continued success, as the Highfields suburb experiences steady growth. The deal was handled by the Savills team of Peter Tyson and Jon Tyson.  

ACT 

BARTON - $41 million 

Quintessential Equity has sold an office tower in the central Canberra suburb of Barton for $41 million, after having secured the same six-level building for $14 million in 2012. The property at 39 Brisbane Avenue was purchased by the ASX-listed IOOF Investment Services Limited, which is part of the Insignia Financial Group. The 4,800 sqm landholding contains three levels of office space above a ground floor and podium car park, and was refurbished extensively recently following Quintessential Equity purchasing the property in 2017. The deal was brokered by Matthew Winter and Paul Powderly of Colliers, in collaboration with Tim Mutton of JLL.  

South Australia 

ADELAIDE CBD - Price Undisclosed 

Multi-billion-dollar developer Gurner has struck a deal with Kennards Self Storage for a 1.37-hectare site at 237 Grote Street, Adelaide, for an undisclosed amount. Gurner has plans to transform the former Australia Post facility into more than 750 residences with six-star amenities over four towers. Additionally, they are intending to develop a retail establishment with over 15,000 sqm in retail, commercial and entertainment space. 

Kennards had purchased the six-level Australia Post building in 2020, and then subsequently approached Gurner as part of a small EOI process.