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Clarence Property Buys Brisbane Shopping Centre for $31.25m

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Clarence Property Buys Brisbane Shopping Centre for $31.25m
Property funds manager Clarence Property’s unlisted Westlawn Property Trust has acquired The Zone Shopping Centre at Underwood for $31.25 million.

The 2.85-hectare retail complex is home to national retailers including OfficeWorks, Rebel Sport and Good Price Pharmacy.

Located on the corner of Compton and Kingston roads, the centre benefits from a high-profile position in a high growth catchment between Brisbane and the Gold Coast.

This is the sixth acquisition for WPT, with other commercial and retail assets purchased in Hamilton, Spring Hill and Northgate totalling $34.74 million since October 2017.

Clarence Property managing director Peter Fahey marked Underwood as a good fit for WPT, which has more than $250 million in assets between Yamba and the Sunshine Coast.

“Our target asset allocation for WPT is about 30 to 45 per cent retail, with a focus on high yield neighbourhood shopping centres in growth regions,” he said.

Clarence Property’s flagship unlisted Westlawn Property Trust is also offloading a retail centre in Robina with a price tag of $30 million.

Located on a 20,407sq m in Robina, the centre is currently 94 per cent occupied and delivered an 18.6 per cent return to investors in 2017.

Source: theurbandeveloper.com

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Commercial

Dexus Snaps Up Brisbane Audi Centre for $91.2m

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Dexus Snaps Up Brisbane Audi Centre for $91.2m
Property giant Dexus has purchased the Audi Centre and the Euro Marque complex in Fortitude Valley in Brisbane’s inner north.

Dexus has paid $91.2 million for the property located at 570-586 Wickham Street, realising an initial 6 per cent yield.

The property comprises two adjoining, purpose-built automotive dealerships known as Lighthouse, constructed in 2011, and the Euro Marque building, built in 2006.

The 7,123sq m site has been home to high-end brands such as Audi, Lamborghini, Maserati and Bentley.

Currently, the property features 13,288sq m of office and showroom space across two levels and a hardstand and external area of 2,556 square metres.

CBRE’s Mike Walsh, Peter Court and Tom O’Driscoll, in conjunction with Glen Wright and Nick Spiro of Cushman & Wakefield, were appointed to market the 570-586 Wickham Street property.

Walsh described the deal as a “landmark transaction” for Brisbane’s fringe market.

Nine offers were reported from local and offshore property companies eager to maximise the site’s underlying value.

The site has attracted strong interest due to its future development potential of up to 20-storeys.

An important part of the deal was the lease recommitment last year by the ASX-listed Autosports Group to the end of 2026 plus two five-year options.

Dexus, Australia’s largest landlord, will now collect a net passing income of $5.472 million a year.

Source: theurbandeveloper.com

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Commercial

Clarence Property Buys Brisbane Shopping Centre for $31.25m

Published

on

Clarence Property Buys Brisbane Shopping Centre for $31.25m
Property funds manager Clarence Property’s unlisted Westlawn Property Trust has acquired The Zone Shopping Centre at Underwood for $31.25 million.

The 2.85-hectare retail complex is home to national retailers including OfficeWorks, Rebel Sport and Good Price Pharmacy.

Located on the corner of Compton and Kingston roads, the centre benefits from a high-profile position in a high growth catchment between Brisbane and the Gold Coast.

This is the sixth acquisition for WPT, with other commercial and retail assets purchased in Hamilton, Spring Hill and Northgate totalling $34.74 million since October 2017.

Clarence Property managing director Peter Fahey marked Underwood as a good fit for WPT, which has more than $250 million in assets between Yamba and the Sunshine Coast.

“Our target asset allocation for WPT is about 30 to 45 per cent retail, with a focus on high yield neighbourhood shopping centres in growth regions,” he said.

Clarence Property’s flagship unlisted Westlawn Property Trust is also offloading a retail centre in Robina with a price tag of $30 million.

Located on a 20,407sq m in Robina, the centre is currently 94 per cent occupied and delivered an 18.6 per cent return to investors in 2017.

Source: theurbandeveloper.com

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Commercial

Brisbane Industrial Sales Up 54% Last Year

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Brisbane Industrial Sales Up 54% Last Year

Brisbane’s industrial property sales reached $1.43 billion in 2017, which was up a record 54 per cent on the $928.1 million achieved in 2016.

According to Colliers International’s latest research, limited availability of stock and strong demand for industrial assets resulted in rising prices and tightening yields for prime grade product.

Colliers International national director industrial Matthew Frazer-Ryan said significant sales showing strong activity contributed to the record value in 2017.

“Key notable transactions in the latter half of 2017 included 920-928 Nudgee Road, Banyo for $36.75 million; and 741 Nudgee Road, Northgate for $28.25 million,” Frazer-Ryan said.

“There has been a 55 to 115 bps cap rate compression of prime grade initial yields for Brisbane industrial assets over the period Q4 2015 to Q1 2018. The greatest level of compression over the respective period was experienced in Brisbane’s northern industrial precinct, with yields tightening by 110-115 bps. The Australia Trade Coast precinct recorded the tightest initial yield for prime grade industrial product sitting at 6-6.45 per cent.

Brisbane Industrial Sales Up 54% Last Year

741 Nudgee Roadn Northgate

“A similar story has been experienced for industrial land values with prices rising considerably, due to limited supply over the last year.”

Year-on-year to March 2018, the average industrial land value across Brisbane increased around nine per cent. Land prices for industrial allotments of 2.5-hectares are the highest in the Australia Trade Coast precinct and range from $285-$425 per square metre.

Domestic buyers comprised approximately $1 billion (or 74 per cent) of sales. The share of offshore investment was lower in 2017 – due to the limited supply of suitable stock.

Leasing deals

Frazer-Ryan said leasing activity for prime grade warehousing remained buoyant, whereas secondary grade stock remained relatively subdued.

One of the biggest deals of the year was by Sentinel Property Group for a waterfront bulk storage industrial facility on a 140,000 square metre site at 69 Tingira St, Pinkenba for a $48.5 million leaseback.

Colliers found there were nearly 490,000 square metres of leasing transactions during 2017. Of this, the majority were design and construct and/or pre-commitments. Prime grade rental rates remained relatively stable over the past year, and stagnant over the past quarter.

Brisbane Industrial Sales Up 54% Last Year

69 Tingira St, Pinkenba

There was 251,000 square metres of industrial supply added to the industrial market in 2017, of which all have been leased. Additionally, of the 196,000 square metres anticipated for completion in 2018, 33,649 square metres is now complete and fully leased. A further 84 per cent of the 103,000 square metres currently under construction is leased.

Colliers International researcher Helen Swanson said in looking forward and assessing the short supply pipeline of upcoming projects over the next few years, she anticipated that incentives would continue to fall over the short- to medium-term.

“The Queensland economy is benefiting from improved employment and net interstate migration numbers, along with a strengthening service and residential construction sector, which overall are having a positive impact on business sentiment and hence demand for industrial assets,” Swanson said.

Source: theurbandeveloper.com

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