Backpackers hostel sold to glam up for ‘flashpacker’ crowd
Capital Gain
The sale of Manly’s Boardrider Backpackers comes as the return of budget travellers after the pandemic sparks a renewed demand for hostel-style accommodation – but ones that offer a higher standard of technology and amenities to cater for a new, more affluent wave of travellers, known as flashpackers.
Boardrider Backpackers at 63–67 The Corso has been sold to a private investor for $12.5 million.
Built in 2001 and operated by the same owner for 25 years – Peter Skerrett’s private family office Invergowrie Property – the property has long been a fixture of Manly’s hospitality scene.
Previously home to a Crazy Prices Woolworths, the 1158 square-metre dual frontage property was transformed into a 28-room backpacker hotel featuring a ground floor café, expansive communal areas and a rooftop terrace with views over Manly Beach and The Corso.
It comprises 28 large accommodation rooms that can house up to 120 people in a mix of dormitories that can be redeveloped. The property was sold as a going concern and with the benefit of upcoming vacant possession, the purchaser intends to upgrade the existing accommodation.
The deal was managed by Colliers agents Tom Appleby, Karen Wales, Eugene White and Jackie Su.
North Shore luxury
Prolific developer Aland is set to start on its latest development, called The Walden, in North Sydney, with an end value of about $950 million.
Having snapped up the East Walker Street site in June for $240 million from Cbus Property, Neil Werrit’s Galileo Group and Abadeen, the developer will launch the project later this month.
In Aland’s first foray to the North Shore, the 3952 square-metre site at 11-17 Hampden Street and 173-179 Walker Street will comprise luxury apartments featuring one-, two-, three- and four-bedroom residences spread across 30 storeys, plus a penthouse collection.
There will also be a four-storey amenity building known as The Pavilion, offering exclusive resident-only amenities such as a dedicated concierge service, a sauna and private wellness studio. Construction commences in early 2026.
It comes as the developer is putting the finishing touches to its large-scale project in Gosford which includes a new Voco hotel, managed by IHG Hotel and Resorts. There are also 506 apartments and six restaurants, a sports bar and function rooms in the adjoining residential tower.
Investor buys police station
Private group EG Funds has sold the site of the Mascot Police Station at 965 Botany Road, Rosebery, for $29.13 million on a yield of 4.56 per cent. The property is still leased to the police on a weighted average lease term of 5.5 years.
Being located in the tightly held south Sydney area, there were many interested parties. The property will likely be developed over time, depending on how long the police remain as tenants.
The property comprises a purpose-built commercial facility of 2888 square metres on a 4152 square-metre site. After acquiring the asset in April 2020, EG Funds undertook a targeted environmental, social, and governance-focused capital works program, resulting in a substantial uplift in the building’s sustainability performance.
The police station was acquired by a private investor.
Colliers’ Matthew Meynell and Justin Rosenberg advised on the sale.
Stockland wants out
ASX-listed Stockland is looking to sell its Macquarie Park life sciences properties valued on its books at about $117 million.
Located at 60-66 Waterloo Road, the diversified developer is selling the two prime-grade buildings with a combined net lettable area of more than 17,400 square metres. The properties are currently 90 per cent occupied and generate a passing net operating income of about $8.1 million.
Tenants are in pathology, medical technology, and industrial automation such as Laverty Pathology, Becton Dickinson, and Yokogawa.
The sale comes as the group looks to move into high-rise residential sites and lower its exposure to the tough office market.
It recently applied to the NSW’s Housing Development Authority to convert its $1.5 billion office project at 110-122 Walker Street, North Sydney called Affinity Place, into upmarket apartments.
This was rejected, but it continues to assess options for the site. At its recent full-year results, Stockland said it wants to focus on its industrial and residential operations.
Steven Kearney, Kenny Duncanson, Jack Harrison and Mark Hansen of Cushman & Wakefield and Mitch Noonan and James Parry of CBRE are selling the Macquarie Park properties.
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