Commercial hammer prices
The amount Chinese conglomerate HNA Group paid to acquire 1 York Street from Colonial First State. The 22-storey building formed part of the CFS’s unlisted direct property investment fund and has a net lettable area of 18,400 square metres. The sale price reflected an initial yield of 8.5%, with the deal negotiated by Vince Kernahan, Jon Chomley and Andrew Reed of Colliers International with Aurelio di Napoli from DTZ Sydney advising HNA together with Linda Zhu of DTZ’s Sydney-based China desk.
The gross rental return achieved on a commercial property leased to the Commonwealth Bank that sold to an investor for $4 million. Bidding from four parties pushed the price to more than $6,700 per square metre. The property on Upper Heidelberg Road, Ivanhoe in Melbourne was sold by Fred Nucarra from Belle Real Estate. The bank’s lease on the property has two years to run with no option to renew.
The price achieved for a heritage Sydney office building with a ground-floor bar sold under receivers’ instructions at auction. The 338 Kent Street building has a net lettable area of 493 square metres. The building is part of the 1888 Merchant and Partners warehouse building, which has stucco detailing designed in the Victorian Free Classical style. It was listed by receivers and managers Taylor Woodings through CB Richard Ellis agents Tim Grosmann and Rohan Ramsay.
The amount the Roman Catholic Archdiocese has paid for the former Bank of Queensland Centre at 229 Elizabeth Street from family construction business FA Pidgeon and Sons, reports the Australian Financial Review.
The yield achieved following the sale of a 529-square-metre retail and office property at 85-89 Cronulla Street in Sydney’s Sutherland Shire for $5.25 million. The sale was negotiated by Daniel O'Brien, an associate director at CBRE, who said investor demand for the area was improving.
The estimated price global property manager RREEF is negotiating to buy a tower on Sydney’s Sussex Street from Eureka Funds Management. The property is located at 140 Sussex Street, with CBRE’s Rob Sewell Josh Cullen and Rick Butler handling the sales process. The 14-storey building has 12,400 square metres of net lettable area. Eureka bought the tower in 2005 for just under $60 million.
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