Deals: Grill’d on the menu, Nike swoops on Brighton
A South Melbourne commercial property leased to burger giant Grill’d has sold at auction for $3.36 million.
The retail store, on popular Clarendon St, sold on a yield of 3.4% after heated bidding from local and international investors.
Grill’d recently signed a new seven-year lease for the shop, with an option of a further seven years, which Fitzroys agent Andrew Hewett says contributed to the strong result.
“We received huge enquiry given the tenant is known brand nationwide, the property’s secure lease and that it is situated in the prime section of the retail strip, opposite the Clarendon Centre,” Hewett says.
“The sale highlights the demand for properties with national brand names and long leases.
Melbourne: Double Prahran site sells for $11.35 million
Two neighbouring commercial property owners joined forces to secure an $11.35 million windfall for two sites in inner-city Prahran.
The properties at 10 and 12-16 Cecil Place were estimated to be worth a combined $8.5 million if they were sold separately, but their owners consolidated the sites and boosted their return by more than 30%, agents say.
10 Cecil Place comprises a two-storey office building with 881sqm of space and 20 car spaces, while 12-16 Cecil Place has 459sqm of floor space spread over two levels, with 11 car spaces.
Teska Carson’s Michael Taylor, who sold the property with Michael Ludski and Marshall White’s Leonard Teplin, says the trend of residential owners pooling their properties is becoming more prevalent in the commercial market.
“This is obviously a well-established trend in the residential market but not one that has been exploited in the commercial sector and indeed the first we have seen in Prahran and surrounds and it has worked wonderfully well for the vendors,” Taylor says.
“At the same time it has presented an outstanding development opportunity with three street frontages and significant underlying land value as well as secure leases providing a handy income stream should a purchaser wish to redevelop.”
Queensland: Opportunity beckons on Great Barrier Reef
A hotel and five surrounding land parcels on the Queensland coast have been put on the market.
Brookport Holdings is selling The Strand Hotel at Yeppoon and the adjoining blocks of land, creating 4924sqm of oceanfront real estate, with views towards Great Keppel Island.
The properties are being offered for sale in one line or individually via an expressions of interest campaign.
CBRE’s Darren Collins and Glenn Price are steering the campaign, with Price saying the properties present substantial development opportunities, as well as instant income from the hotel.
“For over 60 years, The Strand has been a favoured watering hole for locals and travelers alike, providing a fantastic setting to enjoy all the offerings of the Yeppoon lifestyle. The venue consistently generates a strong cash flow, with additional upside should an incoming operator wish to take the business to the next level,” he says.
“Strategically positioned hotels such as The Strand are historically very tightly held across the east coast of Australia, which should prompt strong interest from the hotel sector, in addition to the expected development focus.”
Melbourne: Nike swoops into Brighton
Upmarket Brighton will welcome a standalone Nike store to its Church St shopping strip, with the global sportswear giant leasing the former Middle Brighton post office.
Nike has leased the property – formerly leased by the failed Laura Ashley group – on the corner of St Andrews St for seven years at around $200,000 per year.
Leasing agent Mark Talbot, from Fitzroys, says three national tenants were shortlisted for the site’s lease, with Nike winning out.
“The enquiry received in the campaign reaffirmed the strong demand from national tenants for Church St,” he says.
South Australia: Cooma Park farm up for sale
An olive, grape and pine nut plantation that enjoys one of South Australia’s most significant water supplies has been put up for sale.
Cooma Park at Coonalpyn, 175km south-east of Adelaide, has 420ha of land dedicated to wine grapes, olives and pine nuts, but is expected to attract significant interest for its additional 1300ha of land, half of which already contains irrigation bores.
Colliers International’s Jesse Manuel, who is marketing the property with Tim Altschwager, says the farm’s underground water supply was invaluable.
“Cooma Park is a substantial irrigation and mixed farming property featuring one of the largest single underground water entitlements for irrigation in the state,” Manuel says.
“With an entitlement to over 6000 megalitres of underground water for irrigation, there is a significant surplus for a new owner to utilise the property for alternative agricultural pursuits or to expand the current olive, wine grape or pine nut enterprise.”
The property also has a homestead, two management houses, staff quarters, an office, storage sheds, a workshop and irrigation sheds.