CUB's Abbotsford headquarters sold to Chinese investment group

CUB's Abbotsford headquarters sold to Chinese investment group
Jonathan ChancellorDecember 7, 2020

The Wyllie Group and Charter Hall have sold the Abbotsford headquarters of Carlton & United Breweries.

The Chinese investment company Hengyi has paid more than $20 million for the office building and warehouses next to CUB's nine-hectare brewery on Yarra River.

The curved five-storey office building at 2-6 Southampton Crescent, built in 1928 for Kodak.

The acquisition includes a vacant warehouse at 36 Bond Street and warehouses at 10-32 Duke Street. The buildings were part of a portfolio sale and leaseback deal struck in 2007.

Charter Hall and the Wyllie Group paid $41 million for 10 properties on two hectares around the Abbotsford brewery.

After the sale of parts of the portfolio, the Wyllie Group paid $18.3 million in 2009 to become the sole owner of the remaining properties.

The transaction was negotiated by agents Dawkins Occhiuto and Vinci Carbone

Hengyi will re-lease the space when CUB moves out.

The area has a special zoning underpinned by the Abbotsford brewery. Although CUB has stressed it has no plans to close the brewery, its eventual closure will lead to a rezoning of the area and redevelopment of the surrounding buildings.

Hengyi has paid more than $20 million for the office building and warehouses next to CUB's nine-hectare brewery on Yarra River.

The curved five-storey office building at 2-6 Southampton Crescent, built in 1928 for Kodak, returns $2.2 million a year in rent.

The acquisition includes a vacant warehouse at 36 Bond Street and another complex of warehouses at 10-32 Duke Street, which is on 2,404 square metres and returns $516,286 a year.

Their leases expire in December 2017. The buildings were part of a portfolio sale and leaseback deal struck in 2007.

Charter Hall and the Wyllie Group paid $41 million for 10 properties on two hectares around the Abbotsford brewery.

After the sale of parts of the portfolio, the Wyllie Group paid $18.3 million in 2009 to become the sole owner of the remaining properties.

The transaction was negotiated by agents Dawkins Occhiuto and Vinci Carbone, who confirmed the sale but declined more information.

The high yielding investment is expected to be a long-term hold for Hengyi, which will re-lease the space when CUB moves out.

The area has a special zoning underpinned by the Abbotsford brewery. Although CUB has stressed it has no plans to close the brewery, its eventual closure will lead to a rezoning of the area and redevelopment of the surrounding buildings.

The transaction was negotiated by agents Dawkins Occhiuto and Vinci Carbone, who confirmed the sale but declined more information.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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