Deals: Rush tipped for Melbourne UniLodge
The highly-touted student accommodation market faces a major litmus test as a 281-room facility is put up for sale in Melbourne.
The building at 746 Swanston St, which is currently operating as UniLodge @ Melbourne, features 12 levels and 3178sqm of student accommodation, with beds for 313 students.
Situated opposite the University of Melbourne’s Parkville campus, it was originally a part of the Royal Women’s Hospital nurses’ quarters and was refurbished in 1992 as a student facility.
It is leased to UniLodge until 2022 and is to be sold via an international expressions of interest campaign, ending on December 17.
Booming market: A world of opportunity for student housing investors
Colliers International’s Daniel Wolman says the property enjoys an occupancy rate above 90%, with students on six or 12-month leases.
“Offering immediate scale and a key location, the asset will allow an operator to establish themselves as a key player in the student accommodation market. For investors, the strength of location and brand of UniLodge provides certainty of income into the future,” Wolman says.
“With the main Melbourne University tram stop at the doorstep, the property is perfectly positioned close to the university and public transport making it the ideal location for a student accommodation complex.”
A report last month found Australia was significantly undersupplied for student accommodation, with predictions of 7.5 international students for every available bed by 2018, making the market a prime target for investors and developers.
Gold Coast: Banora Central sold on 6.49% yield
A private investor is the latest to dive into the hot neighbourhood shopping centre market, buying the Banora Central Shopping Centre for $19 million.
The neighbourhood centre on the corner of Leisure Drive and Fraser Drive in Banora Point, near Tweed Heads on Queensland’s Gold Coast, sold on a yield of 6.49% after an expressions of interest campaign.
With only four specialty tenants, the asset offered strong income security and little or no leasing risk
The 3601sqm centre features tenants including a Coles supermarket, BWS liquor store, newsagent, chemist, banks and a medical centre, as well as 152 car spaces.
Savills agent Jon Tyson negotiated the deal, with Tyson saying Banora Central’s leasing profile gave it strong appeal for investors.
“With only four specialty tenants, the asset offered strong income security and little or no leasing risk,” Tyson says.
“This feature, coupled with a low management requirement, was of particular appeal to investors. It was this income security and ease of management that set the centre apart from other assets.”
Adelaide: Families SA shifts operations to St Mary’s
Adelaide’s Southern Business Centre will be Families SA’s new home, after the South Australian Government agency secured a 10-year lease.
Families SA will take up about 1500sqm of the facility at 31 Ayliffes Rd in St Mary’s, which was once the Telstra call centre, after it was recently upgraded.
Colliers International’s Jon Cranna negotiated the deal, and says the 9160sqm centre is now almost at capacity.
“The Southern Business Centre’s owners embarked on an upgrade journey about five years ago, which is now nearing completion, with the … complex having just two tenancies remaining,” Cranna says.
“The level of the refurbishment undertaken, including the introduction of additional natural light through saw tooth ceiling skylights, compliant amenities, new services and security, smart new décor and plenty of car parking, were all key drivers for discerning these tenants looking for suburban space.”
Queensland: $16.7m for Townsville shopping centre
Townsville’s Vincent Market Place shopping centre has sold for $16.7 million in an off-market deal.
A private investor bought the recently expanded and refurbished centre from fund manager Horizon Capital Management on a tight yield of about 6%.
We have seen increasing interest in shopping centres in regional Queensland due to the inability of buyers to secure opportunities in metropolitan locations
The 4956sqm facility is anchored by a Woolworths supermarket and has 14 specialty shops, with parking for 200 cars.
Savills brokered the deal, with agent Peter Tyson saying investors are continuing to look outside Brisbane and other capital cities for retail assets.
“We have seen increasing interest in shopping centres in regional Queensland due to the inability of buyers to secure opportunities in metropolitan locations,” Tyson says.
“Competition amongst buyers for investment grade retail assets is as strong as we have ever seen. The tight yield result in this deal follows the trend of the wider market.”
Melbourne: Bright future for shade cloth maker
Shade cloth manufacturer Gale Pacific will move its distribution centre from Braeside to Dandenong South in Melbourne’s south-eastern suburbs, after taking out a lease at the new Discovery Logistics Park.
In a deal worth $900,000 a year, the company known for manufacturing the Coolaroo brand will lease a 11,338sqm facility for the next five years.
Crabtrees Real Estate negotiated the deal, with agent Grant Tishler saying the new facility suited Gale Pacific’s increasing needs.
“Gale Pacific moved into a brand new state of the art facility to cater for the company’s growth,” Tishler says.
“They chose the facility because it ticked all the boxes with multiple loading docks, large hardstand and 12-metre springing height. Discovery Logistics Park is a new industrial park that has excellent access to major arterials.”
Melbourne: Tullamarine portfolio flies off the shelves
A trio of offices and warehouses near Melbourne Airport have sold for $6.5 million to interstate investors.
The Charter Hall industrial portfolio was sold to a syndicate after an expressions of interest campaign, in a deal brokered by Savills.
The properties at 1 Jets Court, 15 Jets Court and 95-99 South Centre Rd lie within the Melbourne Airport Business Park and are leased to Qantas Road Express, Gibson Freight Australia and DSV Air and Sea.
Savills Industrial director Chris Jones says the three properties, which comprised 10,642sqm of office and warehouse space on more than 28,000sqm of land, were sought after because of their strong 4.5-year weighted average lease expiry and $778,943 in annual income.
“This was both a strong result for the vendor and a fantastic investment opportunity for the purchasers, with a solid lease profile in an outstanding location adjacent to the Melbourne International Airport, featuring excellent prime road transport infrastructure and potential for market growth,” Jones says.