In brief: Canterbury shops crush reserve price
A strip of eight shops in suburban Melbourne has sold at auction for a staggering 71% above its reserve after eight Asian bidders sent the price skyrocketing.
The shops at 68-82 Canterbury Rd in Canterbury, anchored by a 7-Eleven store, were set to sell with a reserve of $5.2 million but competition between offshore bidders took the result all the way to $8.9 million – a yield of just 2.2%.
CBRE and Axis Property sold the property for a vendor who had owned the properties for more than 10 years.
CBRE’s Justin Dowers says it was a surprising yet fitting result for one of the area’s best performing retail hubs.
“What they (the vendor) probably didn’t anticipate was the strength of the Asian, particularly Chinese, bidding. We’ve had eight Chinese bidders and that competitive tension just drove up the price,” Dowers says.
“They just saw a lot of value in this property. Sometimes it’s not just about a high return, it’s about security.”
Sydney: Addison Hotel goes for $17.1 million
An Asian developer has paid $17.1 million for the Addison Hotel at Kensingston in Sydney’s inner south-east.
The five-storey hotel at 147-151 Anzac Parade, which sits on a 1453sqm site, has 42 serviced apartments and basement parking for 35 cars, lies just 5km from the CBD and less than 1km from the University of NSW and Randwick Racecourse.
While the building has been earmarked as having redevelopment potential, selling agent Peter Kotzias from Ray White Commercial South Sydney, says it will remain a hotel for now.
“The purchaser will be operating the existing hotel/accommodation as it is for the time being and enjoying the current cash flow,” Kotzias says.
““There are plans to redevelop the property, which is zoned local centre, in the future, subject to council approval.”
Melbourne: Developers to descend on Famous Foy & Gibson building
Part of Collingwood’s heritage listed Foy & Gibson complex is to be sold.
The four-storey building at 150 Oxford St will be sold by expressions of interest and is almost certain to be grabbed by a developer, with the site zoned for either multi-storey residential, office refurbishment or mixed use.
It comprises about 3336sqm of office space over two levels, a lower level warehouse and 86 on-site car parks over the remaining two levels.
Selling agent Ted Dwyer, from Colliers, says 150 Oxford St could be converted into housing, similar to other sections of the former department store factory.
“Although the building is currently part of a larger subdivision of the Foy & Gibson complex, there is an opportunity to do as others have and develop it into a multi-level residential apartment development, subject to approvals,” Dwyer says.
Queensland: Appetite grows for Cairns hotels
A pair of popular Cairns hotels is being offered for sale after a string of other deals at the holiday hotspot.
The ibis Styles Cairns and the Cairns Student Lodge will be sold in separate expressions of interest campaigns, just months after the Pullman Cairns International, the Pacific Hotel Cairns and The Hotel Cairns were snapped up.
Both properties have occupancy rates of around 80%, with the ibis Styles Cairns tipped to attract bids of around $10 million and the Cairns Student Lodge expected to sell for around $7 million.
Melbourne: Asian buyers complete A’Beckett St trifecta
Three neighbouring buildings in as many months have been bought by Asian investors on Melbourne CBD strip A’Beckett St, after another site sold for almost $10 million.
The latest sale – a two-level building at 55-59 A’Beckett St – drew more than 80 enquiries before a winning offer of $9.8 million from a private Malaysian buyer, achieving a yield of just 1.5%.
Colliers International’s Daniel Wolman says this area of the CBD has become highly sought after, with high-rise residential developers swooping on key sites.
“The property attracted enormous interest from several local and offshore groups, particularly due to its significant development potential,” Wolman says.