australian property market wrap 08092023
Today’s wrap includes airport leases. Image: Canva.
  • Almost $50 million in transactions announced.
  • Leasing deals struck at new development in Melbourne.

Today, we wrap up the week with two sales and some leases across the East Coast. A Gold Coast office has been acquired by an unlisted fund manager for $40 million and a Brisbane refrigerated logistics facility has been purchased for over $6 million. Leasing deals were also struck at Melbourne Airport’s new 21,892 square metre speculative development.


Gold Coast office sold for $40M

The sale of an office at 35 Robina Town Centre Drive, Robina, for $40 million has now been settled.

The off-market deal saw Knight Frank’s Matt Barker, Blake Goddard, and Justin Bond introduce Brisbane-based unlisted fund manager, Exceed Capital, to the vendor.

The six-level A-grade office building has 9,173 sqm of net lettable area (NLA) on a 6,760 sqm site in the heart of Robina, adjoining the Robina Town Centre shopping centre, the third largest shopping centre in Queensland. It also has 249 car parks.

35 Robina Town Centre Drive
Image: Supplied.

The former Foxtel head office is fully leased and anchored by multinational business services company Concentrix, which occupies 61% of NLA.

A total of 83% of NLA is leased to ASX-listed or multinational tenants, with other tenants including Retail Food Group, United Disability Care Services, Infinity Group Coaching, VTG Artisan, and a café.

The building was completed in 2001 and has only just finished a major upgrade totalling $4 million including refurbishments to the ground level foyer, amenities, end-of-trip facilities in the basement of the building and brand-new condensers and cooling tower to service all HVAC within the building.

Lytton logistics facility acquired for $6.17M

The Westbridge Total Return Fund has acquired a fully leased refrigerated logistics facility in Lytton, Queensland for $6.17 million.

Located at 160 Benjamin Place, the 2,440 square metre site has a gross lettable area of 1,530 sqm, comprising a cold storage facility and a modern dual-level corporate office.

The facility is located within the prime Australian TradeCoast precinct of Lytton on the doorstep of the Port of Brisbane, and is fully leased to wholesale distributor Sunshine Seafoods, who have successfully operated out of the property for over 10 years.

160 Benjamin Pl Lytton - landscape
Image: Supplied.

“Lytton is one of Brisbane’s most sought-after industrial suburbs due to its convenient access to the Brisbane CBD, Port of Brisbane and major trade routes,” said Westbirdge Funds Management’s head of capital transactions, Simon Worth.

“At the same time, there’s currently a market-wide shortage of available refrigerated logistics facilities which has driven vacancy rates in this sub-market to historical lows.”

“With strong tenant demand and consecutive periods of rental growth, the property presents an opportunity to capture significant rental and value uplift in the medium term,” Worth explained.

“In addition, the current lease benefits from uncapped CPI rent review mechanisms, which provides good potential to capitalise on strong forecast short-term inflation.”

The Lytton property is the second acquisition made by the Westbridge Total Return Fund following the purchase of the Hampstead Hotel and adjacent First Choice Liquor store in Collinswood, SA in March 2023.


Development fully leased prior to completion

Australia Pacific Airports Melbourne (APAM) has fully leased its new 21,892 square metre speculative development prior to practical completion in August this year.

Located at 64-74 Sky Road, the speculative development adds to Melbourne Airport’s 610-hectare Business Park, the largest of its kind in Australia. The park has a range of on-site amenities such as a hotel, childcare, café, local shopping options, and petrol precinct, as well as its own 18-hole golf course and surf park.

Image: Supplied.

Global logistics company, Mode Logistics, has leased a 10,910 sqm warehouse while sportswear, fitness and lifestyle apparel brand, Elite Eleven, and APAM’s Aviation business have each leased a 5,491 sqm warehouse.

“Melbourne Airport and Tullamarine continue to generate high volumes enquiry in the northern industrial precinct with 14 lease transactions over 4,000 sqm in the past 18 months, accounting for approximately 250,000 sqm of leasing absorption,” said CBRE‘s Joe Brzezek, who with Daniel Eramo, negotiated the Mode Logistics and Elite Eleven deals on behalf of Melbourne Airport.

“We are delighted to have fully leased our first speculative development prior to construction completion,” said Melbourne Airport head of development, Stuart Verrier.

“Working closely with the team at CBRE, this project has given us the confidence to commit to a further four speculative developments due for staggered commencement over the coming twelve months. Two of these have been released to the market and the level of interest is beyond our expectations.”

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