In brief: Telstra stays on Exhibition St until 2031
Telstra’s Melbourne headquarters will stay at 242 Exhibition St until at least 2031, after the telecommunications giant signed a new long-term lease.
The 11-year and five-month extension begins when the current agreement with the building’s owners, Investa Commercial Property Fund and Investa Office Fund, ends in June 2020.
The building was purpose-built for Telstra in 1991 and has been the telco’s Melbourne home ever since.
The new lease covers 59,676sqm of office space and 3696sqm of conference, training and ancillary areas.
“We are very pleased Telstra has decided to remain at 242 Exhibition St until 2031,” Investa Group executive Michael Cook says.
“The decision is a strong endorsement of the quality of the location and the building’s ability to meet the needs of the Telstra business over the long term.”
Gold Coast: Convenience centre nets $9.85m
A small Helensvale shopping centre anchored by an IGA supermarket has sold to a private investor for $9.85 million.
The Monterey Keys Shopping Village, 17km north of Surfers Paradise, sold on a 6.7% yield after an expressions of interest campaign.
The centre comprises two buildings on a 9961sqm site with 2000sqm of lettable retail space, much of which is occupied by the IGA and a Jetts Fitness gym.
Savills Retail Investments’ Peter Tyson and Jon Tyson negotiated the deal.
Melbourne: Windsor office a ‘blank canvas’
A vacant office building in eclectic Windsor will be auctioned next month, with developers tipped to figure prominently among the potential buyers.
The two-level building at 168 Peel St, 5km south of Melbourne’s CBD, is expected to sell for between $5 million and $6 million, agents say, with two feasibility schemes already completed, based on the potential for a nine-storey residential development.
Colliers International’s Peter Bremner, Jeremy Gruzewski and Louise Dana have been appointed to sell the property in conjunction with CBRE’s Josh Rutman, Tom Tuxworth and David Minty.
Gruzewski says the property, which will be auctioned on Friday, August 12, “represents a rare inner city blank canvas”.
“Vacant office buildings in the city fringe are extremely hard to come by, especially of this size and character,” he says.
“It features an attractive red brick façade, luxurious high ceilings, great natural light from dual street frontages and the benefit of being positioned within one of Melbourne’s most thriving inner city suburban hubs.”
Perth: Sunmoon Resort a lone ranger in Perth market
A four-star resort just steps from Perth’s famous Scarborough Beach is on the market.
The Sunmoon Boutique Resort is to be sold via expressions of interests, with agents saying it is currently Perth’s only major hotel up for sale.
“At this current time there are no major accommodation hotels on the market in Perth, which adds to the demand for this hotel,” CBRE Hotels’ Ryan McGinnity says.
The hotel at 200 West Coast Highway opened in 2000 and sits on a 3035sqm site, with 45 accommodation suites over two main buildings, while the property’s zoning provides potential for another 18-level hotel building as well as cafes, bars and other commercial uses.
Co-agent David Kennedy says the resort will also benefit from the $100 million redevelopment of the surrounding Scarborough area.
“The opportunity to acquire beachside real estate and a profitable hospitality operation is expected to be of strong interest to a range of investors including local, interstate and international groups,” Kennedy says.
The expressions of interest campaign closes on Wednesday, August 24.
Melbourne: Frasers Property adds to West Park Industrial Estate
Industrial giant Frasers Property will add 20ha to its West Park Industrial Estate in Melbourne’s west, after acquiring a neighbouring tract of land.
Frasers bought the site at 18 Archer Rd, Truganina, from a private owner, and brings the estate’s footprint to around 310ha.
Frasers’ Southern Region Commercial and Industrial general manager Anthony Maugeri says the purchase bolsters the company’s holdings in the region.
“The Truganina land acquisition further supports Frasers Property’s current strategy to restock its land bank in core markets to service the company’s expanding industrial customer base,” Maugeri says.
The site is positioned adjacent to the Deer Pass Bypass and is expected to be released to the market in 2017.
Adelaide: Strong demand for Edwardstown servo
A private buyer has paid $5.75 million for a Shell and Coles Express service station in Edwardstown.
The new facility, which came with a 10-year lease to Viva Energy Australia, along with three five-year options, sold on a 5.7% yield in a deal brokered by CBRE’s Will Brown and Ben Heritage on behalf of developer Emmett Property.
Brown says investors are continually prepared to pay a premium for properties with strong tenancy profiles.
“Achieving a yield of 5.7%, this sale highlights the strong demand currently in the market for single tenant leased investments,” he says.
Heritage says the site was a rare opportunity, underpinning the strong result.
“Rarely does a brand new retail leased investment of this quality within Adelaide be put to the open market, giving investors the opportunity to secure a long-term cash flow,” he says.
Sydney: Investor snares new Potts Point Woolworths
A private investor has jumped in early to buy the a yet-to-be-built Woolworths at the base of the new Omnia apartment tower at Potts Point, in a deal reportedly worth $16.3 million.
The 1190sqm retail component of the Omnia development, which is being developed by the Greenland Group and is not due to be completed until 2018, is anchored by a 15-year prelease to Woolworths.
CBRE’s Nick Willis, Justin Dowers and Sharon Yang negotiated the sale via an international expressions of interest campaign.
Willis says the property’s prime location in one of Sydney’s most affluent residential areas presented as a major attraction for investors.
“The property’s strategic inner-city Sydney location, adjoining the Kings Cross train station, attracted strong interest at both a national and international level,” he says.
“Investors are becoming aware of the benefits of acquiring mixed-use retail centres, particularly those that leverage off well thought (out) design between the residential and retail component, such as Omnia.”
South Australia: Dowie Doole buys McLaren Vale vineyard
Winemakers the Conte family have sold one of their South Australian vineyards to local wine producer Dowie Doole.
The 53ha Conte Estate has been developed over 55 years, according to Colliers International selling agents Nick Goode and Nick Dean, about 40km south of Adelaide.
The property is planted with about 35ha of vines on three titles in one of South Australia’s most renowned wine regions.
“The sale of Conte Estate vineyard represented an extraordinary opportunity with self-evident appeal to both existing wine industry participants and lifestyle buyers to develop and integrate the wine tourism potential of the property,” Dean says.
“The vineyard was first planted to Grenache in 1965, and today is planted to varieties best suited to the signature red wine styles for which McLaren Vale is famous, as well as an assortment of interesting new European varieties grafted in 2012.”