Retail Sale

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A two-storey retail asset on Swanston Street in Melbourne's CBD has set a new record building rate for a commercial property in Victoria, after selling for $9.2 million at auction.
It is the first building to come onto the market in the retail strip in five years.
273 Swanston Street sold on a yield of 2.13%, with more than 200 people attending the auction.
The sale of the 130 sqm building, leased to dumpling bar New Taipei, represented a new record rate of $70,769/sqm for the Melbourne CBD.
CBRE's Melbourne City Sales team of Alex Brierley, Julian White, Nathan Mufale and Chao Zhang managed the sale on behalf of the private family who owned the building for the past 70 years.
Eight local and international bidders fought to secure the asset, with a Malaysian investor outbidding several Melbourne families and rival parties from Hong Kong and Malaysia.
The building is next door to a McDonald's on the corner of Lonsdale Street and Swanston Street.
"As the first Melbourne CBD freehold auction in 2020, this was the first real test of the market and what we have witnessed is a continuation of the confidence buyers demonstrated in late-2019," Mr White said.
"Coupled with other recent Melbourne CBD sales, it also demonstrates the significant power of the auction as a method of sale for properties that are suited to public competition."
The result follows the sales of the Tsindos Greek Restaurant at 197 Lonsdale Street to a Taiwanese investor for $8.1m on a similarly tight yield of 1.29%, and the OPSM building at 384 Bourke Street for $22.5m on a 2.60% yield in December 2019.
"We are noticing many Asian buyers are recognising the rarity of these freehold assets within the CBD grid," Mr Zhang added.
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Swanson Street, Melbourne retail site breaks Victorian commercial property record

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The historic host of Brunswick East's Carbone Custom Made Clothiers has changed hands for the first time in 40 years.
Fitzroys agents Mark Talbot, Tom Fisher and Ervin Niyaz sold the prominent 297 Lygon Street building under the hammer on behalf of the New South Wales-based Richardson family.
Talbot said the sale price reflected a remarkably tight 2.0% yield, and a land rate of $4,352 per sqm.
Eclipsing that of the recent sale of 368 Lygon Street, which had a height allowance of seven levels, while the Carbone site has a height limit of five levels and is subject to heritage overlay controls
Set on a 618 sqm site, 297 Lygon Street has a single-level interwar Greek Revival brick showroom and warehouse building of 596 sqm, with the front portion utilised as a retail space and the rear for handcrafting and tailoring.
It has 16.85m of frontage to Lygon Street with rear access from Ann, Albert. and Trafford Streets.
Talbot said, “we received more than 60 serious enquiries during the campaign from all buyer groups, leading to competition between several bidders at auction."
Carbone has a short-term lease until September 2020 that returns $75,712 per annum.
According to Talbot, the new owner is a land banker.
Constructed through the late 1920s, the building was once home to Perfection Knitting Mills and from 1949 until 1970, 297 Lygon Street was occupied by shirt manufacturer Dorrens.
Fisher said the property was offered with an attractive Commercial 1 zoning, and a design and development overlay that encourages development of up to 17m in height.
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Historic Brunswick East retail freehold competed for under the hammer

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A local investor has paid $508,000 for a Little Collins Street retail investment at a record $39,077 psm rate for a strata titled CBD retail property.
The deal, brokered by Teska Carson‘s Gideon Marcus, was for shop 11, 530 Little Collins Street in the Exchange Tower building.
Situated on the building’s ground floor, the property comprises a 13 sqm space currently leased to Exchange Tower Newsagency on a five year term from August 2015 with a five year option.
The property has a current rental income of $47,896.68 plus GST.
Featuring three street frontages the shop has pedestrian access via Little Collins Street, Church Street and Union Place.
The 12,230 sqm Exchange Tower comprises ground floor and mezzanine level retail tenancies and 207 upper level office suites which are fully occupied housing approximately 1000 workers.
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Local investor purchases Lt Collins retail property at record $39,000 psm

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The film maker Ian Darling has bought the Woollahra commercial office premises he'd been renting in the heart of Woollahra's Queen Street shopping precinct.
The off market $10.9 million trade was the highest commercial sale on the pricey retail Queen Street strip.
The only prices higher have been leisure assets including the Woollahra Hotel, which fetched $23,681,000 when sold in 2015, plus the business value which took the reported acquisition costs to around $30 million. 
Real estate agency Goodyer had previous occupied the second level at <a href="http://www.commercialview.com.au/109-queen-street-woollahra-nsw/commercial-for-lease-details-11185296" target="_blank">109 Queen Street</a> which Darling secured recently.
Wholefoods had been a retail tenant. It has been the headquarters of the Pongrass Property Group.
It was sold by the Yared family.
Darling is the founder and executive chair of Shark Island Institute and executive director of its production arm, Shark Island Productions, a documentary company.
His documentary credits as a producer, director and executive producer include Suzy &amp; The Simple Man, The Genesis and The White Blindfold among a number of others.
Last year he was named Australia's Leading Philanthropist by Philanthropy Australia.
The highest price paid for a house on Queen Street is $13 million, set in 2016 when style-setter and former Vogue staffer Rebecca Caratti bought the renocated Clyde Cottage in Woollahra.
Caratti, daughter of Perth earth moving tycoon John Caratti, emerged as the buyer of the home that belonged to one Singapore's richest people, Ronald Anthony Ooi and his wife Erica Han.
They bought it as a run down cottage for $4 million in 2011.
 
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Highest commercial price ever on Queen Street, Woollahra 

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A property in Sydney’s Darlington leased to a cafe has fetched $1,000,000.
The retail space at <a href="https://www.realcommercial.com.au/property-retail-nsw-darlington-502612834" target="_blank">7/245-249 Abercrombie Street</a> was advertised for auction on November 30.
The property is rented out to the well-known café operator “Choco-Latte which is on a new five-year lease.
It earns $42,681.00 per annum net plus GST.
The property has an internal lettable area of 54 sqm and the zoning is B1 - Neighbourhood Centre.
The selling agent was John Race of Khoury &amp; Partners.
It previously traded for $680,000 in 2016 and for $530,000 in 2006, data from CoreLogic shows.
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Cafe in Sydney's Darlington snapped up for $1 million

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A family-run pizza shop in Sydney’s inner fringe suburb of Potts Point has closed its doors after 32 years selling pizzas.
Macleay’s Pizza was located at <a href="https://www.realcommercial.com.au/property-retail-nsw-potts+point-502624042" target="_blank">Shop 3, 101-103 Macleay Street</a>, and was packed out for its last day of trade in October.
The property is now on the market for sale with a price tag of $1.3 million.
Owner Michael Maccelli’s speciality was the traditional thin crust bases he started working on from his school holidays as a teenager after his father Sam and uncle Joe opened the business in 1985, the Wentworth Courier reported.
“My memories are of all the different characters we’ve had in here over the years; we’ve had sports stars, celebrities and lots of regulars who come because it’s a consistent, good feed with a family atmosphere,” Maccelli said.
The listing agents are Simon Hohnen and Trisiana Muljono of Sydneylinks Real Estate in conjunction with <a href="http://www.laing.com.au/3970737/" target="_blank">Laing Estate Agents</a>. 
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Family-run pizza shop in Potts Point closes

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Sydney's Kazal family has sold Circular Quay retail space - leased to Management International Group and trading as Buckley's Craft Beer Bar - for $21.5 million.
It reflected a tight net yield of 4 per cent.
The new owners of Shop 18A Opera Quays, 7 Macquarie Street plan to hold the high-performing asset for the long term.
The 408 square metre strata-titled property has 256 square metres of lower ground promenade space as well as 137 square metres in mezzanine space which features a fully operational commercial kitchen, walk-in cold storage and private staff meeting rooms.
The restaurant with a hotelier's licence can hold 500 patrons. A lease with options is in place until 2024.
There are 18 other similar lots on the high-profile promenade, which leads to the Sydney Opera House.
"Buckley's Bar is strategically located with a large outdoor seating component with direct water views, with these features making this retail strip one of the most tightly held precincts in the Sydney CBD," selling agent Cushman &amp; Wakefield's Anthony Bray told Fairfax Media.
It follows another Circular Quay asset sold earlier this year when the 131 square metre Shop 12 at 1 Macquarie Street sold for $10.2 million in an off-market sale, at a net yield of 3.15 per cent.
Mr Bray brokered the sale with colleague Ryan Cross.
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Sydney's Kazal family sell Circular Quay retail space

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Aventus Property Group has purchased Home Hub Castle Hill and Home Hub Marsden Park for $436 million, beating off competition from Gerry Harvey to buy the two centres.
The sale represents a weighted average capitalisation rate of 5.6 percent.
Home Hub Castle Hill was purchased for $336 million at a fully leased yield of 5.50 percent and Home Hub Marsden Park for $100 million at a fully leased yield of 6.00 percent.
Simon Rooney, JLL’s head of retail investments, Australasia, said there is a very limited number of major, core assets in the LFR sector across Sydney, so these presented a rare opportunity to acquire significant scale in the sector.
"The sale of Home Hub Castle Hill and Home Hub Marsden Park was the largest homemaker transaction in Australia’s history," he said.
“The yield achieved resets the benchmark for premium large-format retail assets and represents a new record low for the sector.
"For this particular transaction, investors were forward buying growth by pricing in the potential for strong cash flow and rental uplifts.
"The fundamentals of both assets are well supported by population growth in each catchment of 1.8 percent for Castle Hill and 2.1 percent for Marsden Park, said Rooney.
The portfolio was marketed by JLL in conjunction with McVay Real Estate on behalf of LaSalle Funds Management Limited.
Home Hub Castle Hill features a total of 52,004 sqm built over two multi-level centres and includes parking for 1,490 cars on a combined site area of 59,820 sqm.
Tenants include The Good Guys, Nick Scali, JB Hi-Fi, Harvey Norman, Officeworks, Toy ‘R’ Us &amp; Babies ‘R’ Us, Domayne and Freedom, and 64 specialty retailers.
Home Hub Marsden Park is on 19,832.6 sqm, with parking for 451 cars and a site area of 39,900 sqm. It is securely leased with long-term tenure to JB Hi–Fi Home and The Good Guys and features 22 large format and 10 food-based retailers on ground and 7 tenancies on an upper level.
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$436 million sale of Home Hub Castle Hill and Marsden Park

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A Big W-anchored retail centre at Cessnock in regional NSW has sold for $13.2 million on a passing yield of 7.6 percent in an off-market deal through Savills.
The 10 Darwin Street centre was sold 89 percent leased with a net annual income of just over $1 million and at a $/sqm rate of $1,648. The buyer was a Sydney-based private investor. 
Completed in 2006, the purpose-built retail complex comprises two separate buildings including a Big W discount store and two additional specialty tenancies in one building and three separate, large format, tenancies in the other. 
The 8,009 sqm of gross lettable area, which also includes Supercheap Auto and Repco, sits on a 19,290 square metre site. 
The deal was brokered by Savills’ Steven Lerche and Andrew Palmer. 
Lerche said the Cessnock centre is an attractive proposition offering a strong local catchment backed by robust regional population and employment growth and a more attractive income yield than comparable metropolitan assets.
The property had a short WALE due to a lease tail of only 4.5 years to Big W. 
“Demand for retail property investments remains at an historical high and so it was no surprise that we were able to place the property off market, especially given the tight yields for convenience anchored centres,’’ Lerche said.
The Cessnock vendor was a Melbourne-based investor. 
Big W, which is owned by Woolworths, reported a loss before interest and tax of $27.2 million in HY17 which includes a non-cash charge of $35.3 million, the company said in a note to investors. 
"We are currently reviewing the BIG W strategic plan and this will be completed in the next few months," said Woolworths CEO Brad Banducci, Woolworths CEO, in a press release as part of the company's half-year earnings for the six months ended December 31 
Woolworths reported a fall of 16.7 percent in its net profit after taxes from continuing operations although sales increased by 2.6 percent over the comparable period in the previous year.
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Cessnock Big W centre fetches more than $13 million in off-market deal by Savills

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Immigration Minister Peter Dutton and wife Kirilly have paid $760,000 for a commercial investment property in Townsville.
He's bought three retails spaces in <a href="https://www.realcommercial.com.au/property-retail-qld-wulguru-501840974" target="_blank">Edison Plaza</a>, a retail shopping centre in Wulguru.
He's sought tenants for all three spaces.
The property came with $1.1 million price hopes and had been on the market for over 500 days.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/14/Peter1.jpg" alt="" width="514" height="228">
Elders Real Estate Townsville agent Glenm Adair sold the property.
The investment property takes his total portfolio up to five rental properties.
The most notable is the four bedder at Queensland's Palm Beach that cost the couple $2.3 million early last year.
They have two properties in the Sunshine State and another in Canberra. They live at Camp Mountain, north-west of Brisbane.
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