Chinese load up on commercial property
Chinese developers have swooped on a series of major buildings and sites across the country’s west and east coast markets as they stock up on properties ahead of the next market cycle.
In one of the largest plays, Chinese property developer Zone Q has purchased a pair of office towers on the prime Perth boulevard, St Georges Terrace.
The group has bought at 55 St Georges Terrace and 182 St Georges Terrace in deals worth about $45 million and $25 million respectively.
Commercial Insights: Subscribe to receive the latest news and updates
The properties were sold by Aberdeen Standard Life in a deal brokered by JLL’s John Williams and Nigel Freshwater and Knight Frank’s Andrew Woodley-Page and Todd Schaffer.
The agents have declined to comment and Zone Q has not commented for more than a week, but the purchases are in keeping with moves across the country.
In Melbourne, the group is paying value investor Anton Capital more than $120 million for the Victoria Police Centre in Melbourne, which Anton picked up in 2015 as part of a portfolio.
182 St Georges Terrace in Perth.
Zone Q is hoping to tap into longer-term demand for the Southbank and Docklands precincts, with the tower at 637 Flinders St suited to an apartment and hotel complex.
The asset — being sold by Knight Frank’s Ben Schubert and Paul Roberts — appealed to Zone Q as it will reap income from its Victoria Police lease that ends in 2020 while a scheme is developed.
The Chinese purchaser of the 23,000sqm building, which sits on a 4200sqm site, could also work up a plan for an office repositioning, on the back of a strengthening leasing market, and could consider a twin tower mixed-use development, including residential, hotel and office components.
In 2016, Zone Q picked up an office building at 30 Alfred St South in harbourfront Milsons Point in Sydney from Chinese investor Fu Ji for about $55 million.
It carries an approval for 72 apartments and adds to the group’s Sydney holdings, which include a development site in Cherrybrook in Sydney’s northwest.
Zone Q, the local unit of Chinese mainland developer JiaHe JianAn Group, kicked off locally with a south Perth apartment project branded as Pinnacle South Perth.
This article originally appeared on www.theaustralian.com.au/property.
