Strong investor demand continues for specialised assets

Commercial asset

Specialised asset investment opportunities continue to attract high demand from local and offshore interest, with Fitzroys selling three sites in Melbourne’s south-east for a combined $12.4 million following huge interest.

Most recently, the 4,798sqm site at 4-6 & 8-12 The Avenue in the Casey growth corridor suburb of Narre Warren, comprising a Kingswim swim school centre and Happy Days Childcare centre offered separately or in one line, sold together to a Chinese investor for $7 million reflecting an overall yield of 6%.

The transaction followed Fitzroys’ sale of another Kingswim swim school centre, at 2 St Catherines Court in Mornington for $5.4 million.

James Lockwood, David Bourke and Chris James sold the 4,798sqm Narre Warren property via an expressions of interest campaign that received in excess of 100 enquiries.

“This sale further highlights the demand for these specialised assets, the excellent lease covenants from national operators along with strong underlying land values, forming an attractive investment opportunity,” Lockwood said.

Both lots of the site sold with secure leases typical of childcare and specialised asset classes, of 15+10+10-years to the major not-for-profit organisation YMCA from October 2011.

James said the property’s Commercial 1 zoning and growth corridor positioning offered investors the opportunity to take advantage of the growing residential population within the City of Casey’s infill area between Berwick and Cranbourne particularly. Casey is forecast to accommodate another 200,000 residents by 2041.

Bourke and James sold the 3,796sqm Mornington landholding to a local investor, after receiving 70 registered enquiries from overseas, interstate and local buyer groups.

Bourke said 10 genuine offers were received and the campaign moved to a second round of eight offers, reflecting the remarkably strong demand for specialised assets.

The sale price reflected a 6.5% yield, with the property also offering a long-term lease of 15+10+10-years.

Zoned General Residential 1 and with an 81-metre frontage to Mornington-Tyabb Road, it comprises a 1,105sqm building operating as Kingswim Mornington swimming school, with a pool, commercial offices and call centre.

Strategic Gold Coast investment snapped up at auction

A significant strategic investment anchored by a popular pub and other prominent retail tenants at Merrimac on the Gold Coast has been sold at auction by Ray White Commercial Gold Coast for $4.55 million.

The property featuring the Merrimac Tavern at 10-16 Merrilaine Crescent, Merrimac, was sold to a local investor by Michael Willems of Ray White Commercial Gold Coast on behalf of a private owner for a yield of 7.6%.   Mr Willems said there were 12 registered bidders at the in-room auction at the Gold Coast Turf Club and on some spirited bidding for the asset, which is located on high volume traffic road with easy access on a land area of approximately 3,548 sqm.   “This property attracted considerable interest as it offered an outstanding opportunity to secure a significant strategic investment on a well-located block with multiple tenants and extensive frontage to Gooding Drive,” he said.   “The asset represented a fantastic opportunity to purchase a significant landholding with three well-known tenants. With a nett income of $347,629, 10-16 Merrilaine Crescent is secured by three strong leases.   “Merrimac Tavern is leased until 2026 with 2 + 10 year options. Counter Cafe and Eatery and Big Fella’s Pizza are also fantastic tenants on strong leases.   “The successful purchaser has joined an array of investors in the immediate area, with McDonald’s across the road and BP directly next door.”   Mr Willems said the property is close to both Metricon Stadium and Cbus Super Stadium, which would soon be the upcoming focal points for the 2018 Gold Coast Commonwealth Games.  

Offshore investor splashes out on waterfront restaurant

Fitzroys has sold a waterfront restaurant investment fronting the Maribyrnong River prior to auction for $2.15 million.

Chris Kombi and Adam Lester handled the sales campaign, which attracted a strong offer from an offshore purchaser well before the auction date that reflected a 5.4% yield.

The property located at Shop G23, 55 Cumberland Drive, Maribyrnong has a contemporary 465sqm building area operating as a restaurant and function room plus an additional outdoor terrace area of 255sqm.

It offers expansive floor-to-ceiling glass frontage offering full water views, and is operating as restaurant and function centre Riviera, leased on a 6 x 6 x 6 year deal returning around $116,000 per annum net.

The property is positioned within the Edgewater Estate on the Maribyrnong River on the ground floor of a four-storey mixed-use development constructed in 2010, across the water from the internationally renowned Flemington Racecourse.

Kombi said Maribyrnong was quickly becoming one of the west’s most sought after suburbs, seeing significant growth in population, improved utilisation of land and growing investment in transport and amenities.