Australian market leading the way for CBRE
The Australian operations of CBRE were so far one of this year’s best performers for the international commercial agency, which last week posted first-quarter earnings.
The Pacific business reported strong gross revenue growth of 22% for the first three months of this year, compared with the same period in 2013.
Australia and New Zealand chief executive Tom Southern said highlights of the quarter included growing demand for CBD apartments, major office tower campaigns and strong sales and leasing results in the industrial market.
He said the very strong appetite for city dwellings was demonstrated by the rolling launches of new space at the Greenland Centre in Sydney.
“Last year, we sold over $300 million in apartments in the first stage and fielded around 4000 enquiries in the four to five weeks leading up to the launch.
“Earlier this month, a further 120 units were released for sale with the majority sold in the first weekend to a mix of local and overseas buyers.”
The standout office deal in the first quarter was the $161.3 million sale of AM-60 tower in Brisbane to the Dexus Wholesale Office Fund.
A key industrial deal was the $50 million sale to Sydney-based fund manager CorVal of a Montague refrigerated logistics facility in Melbourne’s Truganina.
On the leasing front, the highlight was a pre-lease to TNT of a 32,000 sqm distribution and transport terminal in Sydney’s west, to be developed by GPT Group.
Bunnings hammers out a sale
CBRE has sold the land and buildings at Hastings Bunnings Warehouse to a Victorian private syndicator for $15.2 million, reflecting a tight yield of 6.49%.
The 9000 sqm warehouse at Frankston Flinders Rd is leased to Bunnings on a 12-year term.
“There are limited opportunities to secure new Bunnings asset, and when they do become available we are experiencing unprecedented demand,” said CBRE’s Mark Wizel, explaining the appeal of strongly leased retail space.
He said yields had compressed around 200 basis points in the past 18 months, making deals such as the Bunnings sale a real draw card for those with a long-term investment strategy.
Bidders keen on Southport
Colliers International has sold three spaces at Pivotal Point in Southport, Queensland, to Gold Coast-based investors at an auction fielded by 11 bidders.
The centre’s ground retail space at 2 Nerang St was bought for $1.26 million or $6000 per sqm and is leased to Galaxy Seafood restaurant.
A second ground retail tenancy sold for $645,000, also recording $6000 per sqm, and is leased to Japanese restaurant Hanazono. Both properties were marketed on behalf of Insolvency Turnaround Solutions.
A 86 sqm commercial office space, occupied by Pivotal Point Medical and Dental, sold for $417,500 representing $4850 per sqm.
Property council changes at the top
After a brief stint leading the Tourism and Transport Forum, Ken Morrison will return to the commercial real estate lobby group the Australian Property Council, this time as chief executive.
Current CEO Peter Verwer is leaving to take the helm at the Asia Pacific Real Estate Association in Singapore.
Mr Morrison had previously been chief operating office at the council and takes up his new position in June.
