Wesfarmers-owned Coles Group has made a quick profit selling a retail asset it has just developed in Melbourne’s north for a speculated $34 million.
The Coburg North Village Shopping Centre, at the north-east corner of Gaffney and Sussex streets, is understood to be selling to an investor after a high-profile campaign launched in June.
Coles paid $6.3 million for the 1.8-hectare site in 2010, previously occupied by another Wesfarmers business, Bunnings. In 2013, the supermarket giant applied to build the $15 million shopping centre which it opened last August.
The 6283-square-metre asset is two-thirds occupied by a Coles supermarket and associated Liquorland business, however the Wesfarmers-associated groups pay just over 60 per cent of the rent.
Fifteen speciality stores, some built around the 303-bay car park and facing the street, contribute to the asset’s annual return of $1.88 million. On that basis, the mall transacted on a low yield of 5.5 per cent.
Savills Pat De Maria and Tom Forrest marketed the asset, nine kilometres from town.
Like rival Woolworths, Coles has developed and is now offloading mid-size shopping centres on prime sites acquired in the years after the 2008 property downturn.
Half Fishermans Bend plot selling for $28m
Property developer Bill McNee is speculated to be selling half of a major Fishermans Bend development site for about $28 million.
The 68 Johnson Street opportunity came about after numerous plans in recent years to sell the larger site known as 60-82 Johnson Street for about $60 million, fell through.
The director of Vicland Corporation obtained a development permit to build four towers on his South Melbourne landholding, including two skyscrapers of more than 50 levels, which will be the precinct’s tallest.
The opportunity to build one of these towers and a smaller apartment complex was put to the market a few months ago via agencies Dawkins Occhiuto and Colliers International. Covering 5266 square metres of land, the offering included a permit for 641 dwellings.
An artist’s impression of 60-82 Johnson Street, Fishermans Bend. Photo: Supplied
McNee acquired the 9776-square-metre 60-82 Johnston Street parcel in 2013 for $10.1 million, unpermitted, from the Kennard family.
Enviromix buying trophy Labertouche Farm
Organic materials recycler Enviromix is negotiating to buy the trophy Labertouche Farm between Pakenham and Drouin – to develop a state-of-the-art composting plant.
The 363-hectare Gippsland asset, considered one of Victoria’s most productive farms, includes two divisions, for dairy and poultry, and a permanent water supply.
Labertouche Farm hit the market nearly two years ago with a price tag of between $18 million to $21 million. Some members within the syndicate of private investors who acquired the trophy asset in 2006, now want to follow other investment opportunities.
The farm operation raises nearly 300,000 broiler chickens every two months and runs more than 1000 dairy cows.
Harcourts Evan Broadbent marketed the site, 75 kilometres from town and within a high rainfall area.
Enviromix is in the process of gaining approval from the Baw Baw Shire Council to integrate a composting plant and renewable energy anaerobic digester within the farm at 385 Labertouche Road.
The Dingley Village-based company said its proposed complex will feature force aerated chambers within a receipts shed where a selection of organic materials will be received and processed. It said existing operations at Labertouche Farm will continue.
Transport company buys Rowville factory
A privately owned transport company with a presence in the south-east has paid more than $9 million for a Rowville industrial site that is soon to be vacated.
The 830 Wellington Road property includes a large freestanding cool room, dry store and office, and was marketed with a short-term lease to Parmalat Australia, which began the Paul’s Milk brand more than 80 years ago. Until February, it is paying net rent of almost $77,000 per month to occupy the premises.
Colliers International’s Justin Fried and Andrew Chrapot, with conjunctional agents, Daniel Kelly and Lynton Williams, of Savills, sold the 2.7-hectare site.
Mr Fried said Rowville was popular with industry users because of its easy access to arterial roads EastLink and the Monash Freeway.
“The campaign and sale demonstrates the strength and depth of current demand for established, large-scale facilities in this tightly held, fully developed industrial precinct,” Mr Kelly added.
Ex-Balwyn North disco for sale
Balwyn North’s former Village Disco – now a mixed-use asset – is expected to sell for more than $9.5 million.
Near the junction of Bulleen Road, within a popular local retail strip, the double-storey 1353-square-metre building includes shops, offices, undercover car park and rooftop penthouse capturing views of the CBD 11 kilometres away. A residential developer may consider exploiting the potential views from this airspace, replacing the 900 square metre block with a taller complex.
Lemon Baxter’s Paul O’Sullivan and Chris Curtain are representing the vendor, whose father built 70 Doncaster Road 60 years ago.
Vicinity selling Wodonga Plaza
As part of a property reweighting, Vicinity Centres is selling its Wodonga Plaza retail complex for a speculated $50 million.
Near the NSW border, the 4.3-hectare complex, with development potential, is occupied by more than 40 retailers including Coles, Target and Woolworths.
With a lettable area of 17,560 square metres, Wodonga Plaza would return a fully-leased annual rent of $4.72 million, according to the selling agents, Jonathan Fox and Carl Molony, of Sydney’s Stonebridge Property Group.
Part of a 636-bay car park at the 55-71 Elgin Boulevard complex has the potential to make way for a centre extension.
In June, Vicinity said it would sell Wodonga Plaza and five other national retail assets, estimated to be worth a total of about $250 million. The other centres were the Maitland Hunter Mall and Tweed Mall, in NSW, the Hilton Plaza in South Australia, Monier Village in Queensland and Albany Brooks Garden centre, in Western Australia.
The Wodonga Plaza was valued at $47 million by the ASX-listed landlord, which bought together retail management operations Federation Centres and Novion Property Group last year.
In May, the group sold a portfolio of four shopping centres for $841.4 million to a partnership including US private equity giant, Blackstone, and the Mirvac Group.
Early this year, Vicinity sold a 1.9-hectare block around its Keilor Shopping Centre, in Melbourne’s north-west.
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