Investor bonanza as commercial property listings start to flow
A swath of properties across the healthcare, office, hotel and service station sectors are being offered and snapped up as vendors tap into the demand for bricks and mortar assets by investors in the current low interest rate environment.
Office and industrial landlord Growthpoint has raised $66.1 million through the sale and leaseback of the Quad 2, 6 Parkview Drive and Quad 3, 102 Bennelong Parkway, Sydney Olympic Park.
EG Funds Management has acquired the property for their Urban Regeneration joint venture.
The deal was negotiated by Tyler Talbot, Tim Holtsbaum and Graeme Russell of Knight Frank & Jason Wright and Chris Bailey of GJS Property on behalf of the owner, Growthpoint, following an expressions of interest campaign.
Mr Talbot said the assets were highly sought after, with a number of bids from both local and offshore investors.
“As well as domestic interest, we are seeing interest from overseas buyers, who see Australia as a safe haven as it has managed COVID-19 very well and its fundamentals are strong,” Mr Talbot said.
Another asset for sale is 398-402 Sussex Street Haymarket, known as the ‘Workhouse’ and was originally purpose designed by the late Harry Seidler.
The eight storey freehold office building was reconstructed originally in 1990 and extensively refurbished in 2019 to include five levels of office space, two ground floor prime retail tenancies, a basement retail tenancy plus a rooftop terrace.
Andy Hu and Jordan Lee of Savills Australia are advising on the sale and said Sydney’s Haymarket precinct is undergoing an extensive regeneration and benefit from the completion of new developments.
Savills Australia’s Nick Lower, Ollie Ridley and Selin Ince are also selling an approved healthcare development site at143 Stoney Creek Road, formerly owned by NSW State Government.
The proposed scheme is approved for three levels of medical accommodation and three levels of basement parking.
Elsewhere Sydneysiders’ reluctance to use public transport in the wake of COVID-19 has encouraged an investor to test the market with their Lower North Shore, BP-leased petrol station.
LJ Hooker Commercial Sydney co-director Steven Kruyer is marketing the BP petrol station, located on 498 Willoughby Rd, Willoughby. In addition to the current lease, Jasbe Petroleum Group, operating as BP Willoughby, holds three, five-year options on the 803 sq m site.
Further north the wealthy Flannery family has listed its The Sun hotel at Byron Bay, and are expecting more than $10 million. It is run by the KTQ Group which is owned by the family and steered by Peggy Flannery.
CBRE Hotels national director Wayne Bunz and national pubs director Paul Fraser are advising on the sale and said there have already had some inquiries.
“The listing follows a series of prominent Northern NSW sales, including Bower Byron Bay, Byron at Byron, Byron Bay Beach Hotel, The Farm Byron Bay and the recently recent announced sales of the Lennox Hotel and the Byron Bay Backpackers,” CBRE agents said.
