Australian property market wrap 29 September 2023
Image: Canva.
  • Woolworths Bomaderry Shopping Centre sold for $40M.
  • Avoca Street site acquired for $15M.
  • Quintessential settles One Margaret Street deal.

We wrap up the week with a melange of property activity. Today spans shopping centres to developments, offices and childcare.


Illawarra-Shoalhaven Woolies sells for $40M

Woolworths Bomaderry Shopping Centre, a recently constructed high-performing centre in the Illawarra-Shoalhaven region, has been snapped up for $40 million prior to its public marketing campaign.

A Victorian private investor secured the shopping centre at a fully leased yield of 5.43%. The neighbourhood shopping centre was constructed in 2020 by Fabcot, the development arm of Woolworths Group.

The 4,200 sqm Woolworths and BWS is supported by a gym, medical centre, pharmacy and four other specialty tenants, serviced by a convenient car park.

The centre has a site area of 19,140 sqm and a GLA of 5,451 sqm, featuring a WALE of 8.4 years by GLA. The fully leased net income is $2,171,058 per annum.

Woolworths Bomaderry
Image: Supplied.

The centre is the only full-line supermarket in the primary catchment, with the deal negotiated before even coming to market by the Colliers team of James Wilson and Ben Wilkinson.

“The benchmark result represents the sharpest yield paid for a NSW Neighbourhood Shopping Centre in 2023, and reflects the incredible Woolworths supermarket performance and dominance in the catchment,” said Wilson.

“With Woolworths securing 77 per cent of GLA of the fully leased shopping centre, the high profile offering required minimal management, aligning with the predominantly private capital target purchaser mandates,” added Wilkinson.

Avoca Street site acquired for $15M

Melbourne developer, Prime Edition, formerly known as JCL Prime, has announced the acquisition of a 1,283 sqm site at 17-19 Avoca Street, South Yarra for circa $15 million.

Launching in September 2023, “Avoca” will be developed in collaboration with Pandolfini Architects and is expected to attract a hyper-local, downsizing purchaser. The five apartments and one custom home will have an end value of $65 million.

Eric Loi, Director of Prime Edition, said the purchase of the Avoca site fits with Prime Edition’s strategy to deliver premium projects in tightly-held locations over the next two years, following the completion of the company’s debut project Arbour Park, Surrey Hills, at the end of this year.


One Margaret Street sale settled

Quintessential has settled the $293.1 million deal for One Margaret Street, Sydney, with Dexus. Melbourne-based Quintessential recently finalised an agreement for the 18-storey office tower in Sydney’s CBD on 18 August and has confirmed settlement for the sale.

Situated in a prime CBD location between the redeveloped Wynyard Station and the Barangaroo precinct, the office tower is set for major redevelopment as Quintessential pledges $90 million to refurbish and reposition the A-grade building with works set to commence in 2024.

The business plans on delivering a 10,000 sqm podium with typical floor areas of circa 1,850 sqm NLA. The podium, external spaces and winter gardens are expected to reach completion in 2026 or early 2027.

Construction starts on Tapestry

SIERA Property Group’s Tapestry, on Chevron Island, has turned the soil on its $135 million project.

This week the future residents of Tapestry got behind the shovels to turn the first sod to mark the start of construction, joined by Cr Darren Taylor and UDIA Queensland CEO Kirsty Chessher-Brown.

The 22-storey sculptural tower has been designed as a ‘cultural continuation’ of the neighbouring HOTA precinct, and comprises 113 two and three bedroom apartments.

The rooftop delivers more than 700 sqm of separate recreation zones for residents to relax, connect and engage in the elevated landscape. It includes a private dining space and kitchen, lounge and fire pit, yoga lawn, pool, spa and sundeck, barbecue and alfresco area, gym, sauna, steam room, and lounge area separated by extensive landscaping. It will also feature an edible rooftop garden complete with a tool shed and composting facilities.

SIERA Founder and Managing Director, Brent Thompson, said the group’s decision to deliver Tapestry as a developer-builder provided certainty and progress in a volatile construction market.


Newcastle childcare listed

A 110-place childcare centre in the heart of the Newcastle region is being offered through the Colliers team of Ben King and Tim Woolf, with price expectations above $6.4 million.

Located in a strategic position among a local shopping centre, the 1,812 sqm centre at Lot 1, 17 Laycock Street in Carey Bay is in a multi-tenanted strata complex and provides a net income of approximately $352,000 per annum.

The centre, which recently won an MBA award for best renovation, provides a facility for children aged six weeks to six years. The adaptive reuse of the existing dwelling and state-of-the-art resources make it a highly sought-after commodity.

The EoI closes Wednesday 18 October 2023.

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