In brief: Buyers go mad for Chapel St Mad Mex
Intense buyer interest and a 200-strong auction crowd saw the price for a prominent Chapel St corner property soar $2 million above its reserve.
The site at 125-131 Chapel St, Windsor, known as “Conway’s Corner”, is home to long-term tenants Mad Mex, Basilico restaurant, Yoga Australia and Reymond Communications, and was predicted to sell for around $11 million.
But with four bidders making a play for the property, the price ballooned to $14.96 million and drove the yield down to a lean 3.5%.
Colliers International’s Tom Noonan and Ben Baines sold the property in conjunction with Hocking Stuart Commercial’s Kenny Oliver and Charles Carty and ASM Commercial’s Andrew Manos.
The sale was only the third of $10 million or more on Chapel St in the last five years, which Noonan says was the result of a resurgent retail property market.
“The record sale is reflective of the significant capital targeting premium retail investments in prime strip locations with long-term growth prospects,” Noonan says.
“The campaign received more than 150 inquiries and the ultimate purchaser was attracted to the future rental upside and expansion potential.”
Carty says Windsor has become a retail “epicentre” in inner-city Melbourne.
“Knowledgeable commercial buyers are looking for a site which will generate a strong income, has security of tenure and also a bit of character which the heritage front of the property provided,” he says.
“There’s also the potential to improve the corner site down the track. Combined, these attributes made the site a lucrative and attractive property for astute commercial buyers.”
Sydney: John Holland leases new harbourside digs
Engineering giant John Holland will shift its Sydney headquarters to a nine-level space overlooking Circular Quay, after signing a new deal at the AMP Centre Tower.
John Holland will occupy 1172sqm at the 44-level office building at 50 Bridge St for around $785,000 annually.
Savills director Rob Dickins brokered the deal, and says it was the right space at the right price.
John Holland has leased nine levels at the AMP Centre Tower.
“The AMP tower is one of the CBD’s best A Grade towers both in terms of quality, accessibility and the type of facilities its offers tenants and their clients,” he says.
“It really ticks all the boxes a tenant like John Holland might require and, in this instance, that has certainly been the case.”
Victoria: Farm sale 164 years in the making
A historic agricultural property in rural Victoria is being offered to the market for the first time its 164-year history.
Cheviot Hills, a 1951ha landholding near Penshurst in the state’s west, has been in the Hutton family since 1852 and is currently under the stewardship of fifth-generation farmer Tim Hutton.
It is currently home to a substantial mixed-grazing operation, which includes both Hereford cattle and Corriedale sheep.
CBRE’s Duncan McCulloch and James Beer have been appointed to handle the sale, in conjunction with Kerr & Co’s Robert Claffey.
Victorian landholding Cheviot Hills is for sale.
McCulloch says foreign buyers are expected to figure among the potential buyers.
“Cheviot Hills is a flagship holding ideally suited to high quality grazing pursuits, comprising improved pastures, outstanding soil types and well-developed infrastructure,” he says.
“Given the scale of the offering, we expect the opportunity to attract strong domestic and international interest from corporate buyers. Further, the property boasts a stunning recently renovated bluestone homestead featuring four bedrooms and set within manicured gardens and lawn areas, which we expect will appeal to and draw interest from high net worth individuals.”
Perth: Hospitality Store served up for sale
The Perth home of catering warehouse The Hospitality Store has been put on the market.
The 1015sqm site at 306 Newcastle St on the city fringe will be auctioned on October 27 and its sale could pave the way for a residential, office or mixed-use development of up to five storeys.
The Hospitality Store’s parent company Rewards Supply Co Ltd currently leases the outlet for $170,000 per annum and selling agents Ben Younger and Kate Foley, from CBRE, say the site’s potential uses make it a prime inner-city target.
Perth’s The Hospitality Store is on the market.
“This property offers both security of holding income and ongoing confidence that is expected to underpin strong interest from a range of groups,” Younger says.
“Given the current buyer market environment for high quality retail investment properties and boutique development sites, we expect to see a high level of interest in this opportunity.”
Sydney: Centuria sells up at Olympic Park
Centuria has puts its A-grade office building at Sydney’s Olympic Park on the market as it attempts to capitalise on the city’s vendor-friendly investment market.
The significant 6555sqm property is six years old and has major tenants including Simplot, Watpac, Western Sydney University and Fujitsu, and attracts more than $3.1 million in rent each year for its four ground floor retail tenancies, five levels of office accommodation and two levels of basement parking.
Savills’ Simon Fenn, Graeme Russell and Matthew Dunn are marketing the building in conjunction with CI Australia’s Bevan Kenny and Michael Stokes.
Centuria is selling its office in Sydney’s Olympic Park.
Fenn says Sydney’s tight metropolitan markets had created an ideal opportunity for office owners to sell at a premium price.
“The fact is that we currently have very low vacancy, and in some cases historically low vacancy, in Sydney’s suburban markets, and with withdrawals and increasing demand that’s not going to abate any time soon,” he says.
“Given that scenario the demand has to go somewhere and it’s boutique markets like Sydney Olympic Park and Rhodes that are right in the crosshairs”.
Melbourne: Seven’s a charm for Williamstown offering
Seven proved to be a lucky number for a prime Williamstown retail site, which comprised seven titles and sold for $7 million at auction.
The titles at 20-26 Ferguson St were combined to form one 728sqm landholding, which sold to a Williamstown investor on a slender 3.85% yield.
The site on Ferguson St in Williamstown last sold in 1983 for $190,000.
The property featured five shops and two dwellings/offices with three street frontages, a 28m frontage to Ferguson St and rear parking. Its current tenants include Yambuki Japanese Restaurant, Ella Bache, Cocoa Latte and H&R Block, with the leases returning a combined $290,000 per annum.
Fitzroys agents James Gregson and Michael Ryan sold the property on behalf of a private investor who bought it in 1983 for $190,000.
“The quality and upside potential of the offering was reflected in another remarkable result for the western suburbs at auction,” Ryan says.
Victoria: Hastings shop, office tipped to fetch $2 million
A Hastings retail and office building that counts pizzeria La Porchetta among its tenants is set to be auctioned, with agents expecting it to clear the $2 million mark.
The seaside Mornington Peninsula property at 109 High St spans two levels and 800sqm of floorspace, with rear access to an underground car park for 12 cars.
The Hastings property includes a lease to La Porchetta.
The building is to be sold subject to leases to The Ors Group, Baywest Real Estate, and J&S 1983 Pty Ltd (trading as La Porchetta), with a combined annual rental of $151,046.
Teska Carson’s George Takis and Michael Ludski are marketing the property, which will be auctioned on November 10.
“This is a fabulous opportunity to purchase an excellent investment property with a prominent position in the heart of the beautiful town of Hastings which has seen strong recent growth driven by an upsurge in popularity from both tourism and seachangers,” Takis says.
