- Spit Road property acquired for over $3 million
- KordaMentha Real Estate acquired six Melbourne warehouses
- Monday saw a Tasmanian office sold for over $20M
On Monday, The Property Tribune reported on three commercial properties either sold or coming to market.
Quanta Investment Funds, an Australian property investment group, announced the acquisition of a $39 million Brisbane office asset from Anton Real Estate Partners.
The bid for 157 Ann Street was bolstered by significant new lease agreements which took the occupancy rate of the office tower from 46.6% to over 90%, with passing yield rising from 3.47% to 8.91%.
Henty House, a Launceston CBD office building at 1 Civic Square was sold to a Melbourne-based syndicator for $22.53 million.
Three other buildings came to market in Melbourne, with the portfolio expected to fetch some $20 million in total, either sold individually or in one line.
Located across the CBD, East Melbourne, and Abbotsford, the properties are all positioned within a stones throw of major landmarks and popular locations.
$3M acquisition in Sydney’s North
A two-level property at 30 Spit Road in Mosman was acquired by Stenel Pty Ltd for $3.05 million.
Acquired on a passing yield of 2.66%, CBRE said the price represents a record dollar per square metre rate on floor area for the strip.
While the 151 sqm building has a short-term lease to Mosman Paws, buyer interest was sparked by the property’s future upside, according to the CBRE sales agent Toby Silk.
“The 176sqm site is significantly under-utilised, with the current planning controls and zoning providing for a mixed-used residential apartment block of up to five storeys, subject to the relevant planning approvals,” Mr Silk said.
He also noted that “Cash-rich investors are chasing these types of assets given low bank returns and the current volatility in the share market,” Mr Silk said.
“While the property market is shifting, limited stock means that demand is still outpacing supply for premium commercial property and record prices are being achieved.”
Melbourne industrial units
KordaMentha Real Estate (KMRE) has acquired six warehouse units in-one-line in the Melbourne’s outer-east suburb of Bayswater.
The property at 1-6/843 Mountain Highway, Bayswater, provides for six separately strata titled units with a lettable area of 2,512 sq. m, WALE of 1.8 years and a passing income of circa $294,000.
Industrial has been a recent focus for KMRE, with the acquisition of a Brisbane property in December 2021 for $23.2 million and the divestment of its Laverton North cold storage property at the same time. KMRE’s industrial focus has been centred around value-add returns, with the Laverton North investment providing a 40.3% net IRR to investors.
Tom Korda, Director, KordaMentha Real Estate said, “We were attracted to the investment due to the great location, main road frontage, replacement cost of the units and the fact they are already separately strata titled, offering greater flexibility and risk-adjusted returns for our investors.”
