australian property market wrap 27092023
A new Kent Street hotel will overlook Sydney’s famed Darling Harbour. Image: Canva.
  • Plans for a new hotel on Kent Street in Sydney announced.
  • A Tullamarine asset sold for $14.3M.
  • A warehouse and office in Perth listed for sale.

From the Golden Age of Cinema, to a golden age for industrial, today’s wrap spans the nation and various sectors, from hospitality all the way through to industrial and office.

SOLD

TKCorp divests Tullamarine asset for over $14M

A local owner occupier has acquired 25 Tullamarine Park Road for $14.3 million. The property saw a 51% uplift in value just 16 months after TKCorp purchased the asset in early 2022.

The deal was negotiated by Colliers’ Nick O’Brien and Corey Vraca, on behalf of TKCorp.

The 14,190 sqm property comprises a 6,285 sqm industrial facility, offered with vacant possession at the date of purchase.

Colliers_25 Tullamarine Park Road, Tullamarine
Image: Supplied.

“This transaction reflects the significant demand from owner occupiers to be located within the Melbourne Airport precinct,” said O’Brien.

“The strong result is primarily driven by the scarcity of sale offerings in Tullamarine historically, which has made the Tullamarine market highly sought after. Many businesses want to be located within proximity to the airport due to air freight and the rental premium that private investors can capture in this market.

“With diminishing greenfield development opportunities in Melbourne’s North, infill sites with functional improvements remain in demand, with this recent sale being the third in just 12 months to achieve a solid result above $1,000 per sqm.”

ANNOUNCED

New hotel set to come to Sydney’s Kent Street

ICON Developments, a wholly owned subsidiary of Japanese property and construction giant Kajima Corporation, has announced a partnership with Sydney-based boutique developer Icon Oceania, as the joint venture prepares to lodge development plans for a 229-key hotel in the heart of Sydney CBD.

Plans for the 23-storey, $265 million project include a rooftop bar and infinity pool with expansive city and Darling Harbour views, spacious heritage suites and an Australian-first “Vertigo Suite” featuring a transparent glass floor.

Designed by SJB, the plans draw on the site’s rich film industry history. Located at 499 Kent Street, it is home to the heritage-listed ‘RCA House’, which was purpose-built in 1936 as the Sydney distribution headquarters and film exchange for what is now Universal Studios.

“Our vision is for this property to become a hotel of choice for corporate, leisure and event guests in the strong-performing Sydney market,” said ICON Developments chief executive, Matthew Bourke.

“In Sydney, there’s been an impressive reception to hotels that celebrate the local culture and surroundings to deliver one-of-a-kind experiences,” said Icon Oceania managing director, Nico Tjen.

“At 229 keys, we are hitting a sweet spot that allows us to take the true essence of a lifestyle hotel and deliver it at scale.

“We live in a social media world where people chase experiences and create #instagram memories — our hotel is not just a place to stay but a place that creates memories to last a lifetime.”

Pending planning approval, construction is slated to begin in 2024, with the hotel to open in 2026.

LEASED

Five year lease struck for Laverton North warehouse

Harry the Hirer has committed to a total of 10,113 sqm of warehouse space on a five-year lease in Melbourne’s Laverton North. Colliers industrial agent Nick Saunders managed the off-market deal on behalf of ESR Australia, achieving a strong annual rental in excess of $1,300,000.

The deal comprised two individual properties of 3,974 sqm and 6,139 sqm, respectively, leased in one line, sitting on a low coverage site with a total land area of 26,000 sqm, previously occupied by Allied Sea Freight.

Harry the Hirer_ESR_Colliers
Image: Supplied.

“The warehouses’ features, including drive-around access, a mix of on-grade and recessed loading docks and a 12.4-metre high internal warehouse clearance, were particularly attractive to a business in the transport and logistics sector,” said Saunders.

The ESR-owned warehouses are located within the tightly held Angliss Estate in Laverton North, with excellent access to the Western Ring Road and Princes Freeway, approximately 15 km west of Melbourne’s CBD.

FOR SALE

Booragoon office and warehouse listed

Sterling Property has been appointed as the exclusive agent for 17 Aldous Place, a freehold green title property incorporating a modern three-storey office building and a warehouse facility.

The 2,174 sqm property offers undercroft parking and a high bay warehouse, which was built around 2003.

Sterling Property Managing Partner Vincent Siciliano said the property’s strategic location would be a key selling point for interested buyers.

“We anticipate significant residential growth in Booragoon due to its proximity to Murdoch University, Curtin University, and Fiona Stanley Hospital,” said Siciliano.

“The suburb is also conveniently located near the Swan River, a major shopping centre in Westfield Booragoon, and the popular destination of Fremantle.

“Neighbouring Myaree has a strong large format retail strip, so this quality asset could suit many of the businesses that trade out of either Westfield Booragoon or this large format retail precinct.”

The property was originally designed and custom-built in 2003 to support Enjo Australia’s business operations, winning awards for its design in the same year, however, the company is in the process of relocating following changes to its business model. While custom-built, the design was future-proofed to allow for flexibility for future owners or tenants.



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