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Commercial Property

Southport’s The Brickworks sold for $137 million to Wholesale Australian Property Fund

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gold coast commercial

AN AMP Capital-run fund which has made the Gold Coast’s biggest retail buy of 2017, the $137.54 million purchase of Southport’s The Brickworks center, is not about to embark on a redevelopment spree.

Christopher Davitt, who is overseeing what is the home of the Ferry Rd Market for the new owner the unlisted Wholesale Australian Property Fund, yesterday said that growth at the property would be ‘organically based’.

He said that growth would center around The Brickworks’ features of progressive shopping, dining and lifestyle offerings and its strong and growing catchment area.

“There are no plans to fundamentally the center.”

Mr. Davitt said an attraction point with The Brickworks was the number, mix, and quality of tenants.

Major traders at the Brickworks include Freedom Furniture, US-owned off-price retail chain TK Maxx, and Chemist Warehouse.

The 15,183 sqm single-level retail area includes around 50 other retail, dining, and food-related outlets.

It nets nearly $7 million a year when fully let and the Wholesale Australian Property Fund has bought it, off-market, on a yield of 5.09 percent.

The deal is a big win for Brisbane-based sellers Calile Malouf Investments and company Ralph Lauren, which is owned by Patrick George and John James and is not associated with the fashion brand of the same name.

They bought The Brickworks, which is on 2.72ha site, for $24.26 million in 2004 and two years later initiated an $8 million makeover that included delivering the Ferry Rd Market.

At the same time, the partners bought three adjoining properties for nearly $4 million, expanding their holding to 3.5ha with a mixed-use zoning.

John Muchall, valuation director for JLL, yesterday said that the Wholesale Australian Property Fund had bought into an area, Southport, with a net annual population growth of 2.4 percent, well above the national average.

“The fund’s looking at strong l rental growth, with most tenants having annual increases of between 4 and 5 percent.”

The Brickworks was initiated by veteran New Zealand property investor James Kirkpatrick in the mid- 1980s.

An annex that includes a series of strata-title showrooms was added on the western side of the adjoining Warehouse Rd in the 1990s.

Originally Published: www.goldcoastbulletin.com.au

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Commercial Property

Entire Gold Coast Block Hits the Market

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Entire Gold Coast Block Hits the Market
An entire city block in Surfers Paradise is up for sale for the first time in 40 years.

The sizable 1.05-hectare site has street frontages to Surfers Paradise Blvd and Ferny Ave, and is located about one block from the beach.

The site at 3 Cypress Avenue is owned by Tony Fung’s Aquis group and Chinese companies CCCC International Holding and Tandellen.

The partners, who paid Japan’s Orix group $36.5 million for site two years ago, own it through Aquis Hotel Investment Holdings.

The site is on the market with CBRE’s Jonathan O’Brien and Mike Walsh, and Knight Frank’s James Branch and Mark Witheriff.

“This is an outstanding opportunity to acquire a central beachside development site on this scale without any material impediments to development and a pro-development local council,” O’Brien said.

“We expect to receive interest from a range of national and international developers.”

The listing comes at a promising time for the Gold Coast tourism market, with the Commonwealth Games and recent figures showing an increase in visitors to the Gold Coast to 12.9 million per year with spending in excess of $5 billion. More than one million international passengers through the Gold Coast airport in a 12-month period.

Agents were not able to provide price expectations due to what they said was the unusual and unique quality of the site.

Expressions of Interest for the site close 24 April, 2018.

Originally Published: theurbandeveloper.com

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Commercial Property

Gold Coast office vacancy declines on market demand

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Gold Coast office vacancy declines on market demand

Healthy demand for office space on the Gold Coast has seen vacancy rates fall over the final half of 2017.

The Property Council of Australia’s latest Office Market Report, released today, shows that over the last six months of 2017, Gold Coast office vacancy fell from 11.3 to 10.6 per cent off the back of positive market demand and building withdrawals.

“Vacancy rates have now been falling on the Gold Coast for a year and a half, indicating a growing strength in the local economy,” says Queensland executive director of the Property Council, Chris Mountford.

“The Gold Coast office market is now preforming considerably stronger than the Brisbane CBD, which is sitting at 16.2 per cent vacancy.

“The sharpest decline in vacancy was felt in Surfers Paradise, with strong tenant demand driving a 3.1 per cent drop in vacancy levels.

“Positive tenant demand was primarily observed in A Grade stock, with tenants seeking to shift to higher quality premises.

“With 5,576sqm of new office space in the pipeline for 2018, and 4,000sqm mooted over the long-term, the Gold Coast will need to continue to generate new job-creating opportunities this year in order to maintain current vacancy levels.”

Gold Coast vacancy rates by suburb:

  • Broadbeach: vacancy decreased from 8.7 per cent to 6.6 per cent due to 638sqm of net absorption
  • Bundall: vacancy increased from 11.5 per cent to 11.8 per cent due to -300sqm of net absorption
  • Robina-Varsity Lakes: vacancy increased from 6.8 per cent to 7.2 per cent due to net absorption of -506sqm
  • Southport: vacancy decreased from 14.0 per cent to 13.2 per cent due to 2,800sqm of withdrawals
  • Surfers Paradise: vacancy decreased from 15.1 per cent to 12.0 per cent due to 3,063sqm of net absorption

Originally Published: businessnewsaus.com.au

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Commercial Property

Stradbroke Island Beach Hotel Listed for Sale

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Stradbroke Island Beach Hotel Listed for Sale
Buyers and investors may have the chance to secure one of Australia’s most picturesque ocean-front pubs, as the Stradbroke Island Beach Hotel and Resort Spa has been put up for sale.

For the first time in 20 years, the Point Lookout destination will be marketed by CBRE via a private treaty process on behalf of developer and investor Bob Hill.

Queensland rich-lister Hill secured a 50 per cent stake in the “Straddie Pub” in 1996 and undertook a $20 million refurbishment around a decade ago.

The hotel is situated on a large, 3,267 square metre site and comprises a main bar, bistro, beer garden, gaming room with machines, TAB, function room and on-site bottle shop. There are 13 accommodation rooms and management rights for an adjoining complex comprising 16 units.

CBRE Hotels’ Paul Fraser said the property would deliver its new owner a strong upward trending cash flow and bottom line business.

“This landmark asset, situated in one of Brisbane’s most visited holiday destinations, offers multiple income streams,” Fraser said.

“The incoming owner will reap the benefit of a strong initial yield in addition to huge upside

and revenue growth opportunities, particularly through the food and function offerings.”

The Stradbroke Island Beach Hotel occupies an exclusive headland site on the most easterly point of the Queensland coastline. It offers northerly panoramic ocean views and direct access to Point Lookout’s Cylinder Beach.

Originally Published: theurbandeveloper.com

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