This article originally appeared in Australian Property Journal.
Office
Glenelg, SA
A fully leased commercial property at 6 & 8 Moseley Street has sold for $5 million, reflecting a yield of
4%, amid renewed interest in the Jetty Road retail precinct.
The property is located on two titles within the beachside suburb, on a combined landholding of
approximately 1,300sqm and includes 30 metres of frontage to Moseley Street, reach access from
Milton Street and on-site parking.
The asset offers significant redevelopment potential, due to its zoning allowing for development up to
five levels (STA).
While the asset is currently fully leased to three tenants including a gymnasium, café/restaurant and
residence, generating a net income of $197,847 per annum.
JLL’s Simon Hilmgard and Claudia Brace brokered the sale, fielding strong levels of interest
throughout the marketing campaign.
Bankstown, VIC
Employment provider, Jobs R US has signed on to a new office space with a three-year lease term at
Suite 906 of Civic Tower at 66-72 Rickard Road in Bankstown.
Maria Mangcoy from JLL negotiated the deal for the 282.6sqm space, with the rent reflecting a rate of$460 per sqm gross.
Civic Tower is surrounded by amenities including Bankstown Central Shopping Centre, Hoyts Cinema,Paul Keating Park, Town Hall, library complex and further retail offerings.
The commercial building also offers access to all parts of Greater Sydney via the Bankstown rail andbus interchange, as well as access to the Hume Highway and M5 Motorway.
Industrial
Hallam, VIC
An industrial warehouse asset has sold in Melbourne’s Hallam for $1.95 million to a local owneroccupier looking to grow their business in freehold headquarters in a strong arterial location.
Located around 34km south-east of the CBD, the building comprises 751sqm with 601sqm ofwarehousing that includes loading space and truck accessibility in addition to 150sqm of dual leveloffice and showroom space.
The premises further features a modern kitchenette, with bathroom amenities including a shower and10 on-site car spaces.
Daniel Philipp and Tom Cooney from CVA negotiated the sale of the property via private sale withvacant possession, after managing 135 registered enquiries and 20 enquiries.
Retail
Westlake, QLD
Despite volatility in the market, Real Asset Management has divested The Hub Westlake inQueensland for $11.46 million to a private investor.
RAM’s executive director and head of real estate Matthew Strotton said the sale demonstrates theresilience of well-positioned essential services retail property assets, showing a $1.4 million increase invalue from acquisition.
“This is good momentum for the REP portfolio. Despite an unpredictable economy and high-interestrates, investors consistently seek exposure in assets that house non-discretionary retail and healthcare.Executing this sale at book value is a pleasing result,” he added.
Located in Westlake, 20km south-west of the Brisbane CBD, the centre is anchored by SPAR and othertenants include dental surgery, a GP clinic, a pharmacy, a coffee shop, a swimming school, and aswimming pool equipment retailer.
The asset was formerly part of the listed RAM Essential Services Property Fund (ASX: REP).
RAM director of funds management Doug Rapson said the property’s robust leasing dynamics as apivotal factor in its valuation.
“The diverse revenue streams derived from both essential services retail and healthcare tenants,coupled with long-term leases, undoubtedly piqued the market’s interest. The Hub boasts an 8.3-yearWALE by income and has traded at a circa 6% yield. Such stable returns are attractive to investors inthe current financial landscape,”
Rapson added that the sale is part of REP’s proactive capital management initiative.
“We have moved to a more active ‘capital recycling’ stance, preparing to move nimbly on growthopportunities as they emerge. In addition to the sale of The Hub, we are in advanced stages ofdiligence for the divestment of two more portfolio assets at a combined book value of $20 million,”Strotton said. “This will enable the progression of our 2024 agenda which was flagged to our investorsduring last week’s results roadshow.”
Meanwhile this is the second retail investment this week, after Vicinity Centres sold itsBroadmeadows Homemaker Centre in Melbourne’s north for $20 million on a 7% yield.
Sunshine Coast, QLD
After a three-year hunt, one of the Sunshine Coast’s most well-known watering holes is set to expandby opening a bigger flagship premises.
10 Toes Brewery will open The HUB North Buderim in early October, the former home of a locallyowned IGA. The boutique brewery has signed a five-year lease with a five-year option.
The current address of 10 Toes at Unit 4/127A Sugar Rd in Alexandra Headland will remain as a nano-brewery after the new location becomes operational.
Rupert Hall, the Director of 10 Toes Brewery, has officially confirmed that the brewery’s commitmentto a long-term lease underscores its enduring commitment to the Buderim region.
“We plan to be here for a longtime,” he said. “We are not looking to expand our footprint with thisexpansion, just our density,”
David Smith, Director, Raine & Horne Commercial Sunshine Coast, negotiated the deal after theindependent IGA was forced to close due to the development of the Coles Buderim across the road.
“I saw the potential for a perfect match and seized the opportunity to put the site up to the localbrewery,” Smith said. “After such an exhaustive search for a new site, it is a momentous occasion forthe passionate team at 10 Toes Brewery Road as they reach a significant milestone.”
Burwood, NSW
Hakiki Ice Cream has secured a new retail space in Sydney’s inner west at 1a Railway Parade.
Stephen Panagiotopoulos and Maria Mangcoy from JLL negotiated the deal for the café and outdoorspace.
With Hakiki Ice Cream committing to five-year lease at the 60sqm premises, with rent reflecting a rateof $1,333 per sqm gross.