This article is from the Australian Property Journal archive
A WRAP up of commercial property investment opportunities across Australia.
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Hotel
Strath Creek, VIC
Award-winning accommodation, conference and events venue, Flowerdale Estate is expected to sell for more than $6 million.
Located at 2285 Broadford-Flowerdale Road, around 104km north of Melbourne, the estate features an 1840-built homestead, a function room for 200, an indoor pool, tennis court, gym, ornamental lake and extensive accommodation with 33 guest rooms including a four-bedroom guesthouse and four luxury glamping tents.
Scott Callow from CBRE is managing the sale via an Expression of Interest campaign set to close on 22 October, after the estate was family owned and operated for the last 12 years.
“Flowerdale Estate offers a long-established business with a great deal of popularity and a strong outlook on forward bookings. The 40-hectare land holding along the King Parrot Creek provides the ideal environment for a range of functions, conferences, and events,” said Callow.
Southport, QLD
A 37-room boarding house in Southport has hit the market for the first time since its construction more than three decades ago, in the White Street Lodge.
Located on a freehold 1,236sqm site at 26 White Street, the boarding house features 36 boarding rooms with three storage rooms, a one-bedroom on-site managers’ unit, a utilities room and multiple common areas.
Lachlan Harris from Avanti Group is managing the sale via an expressions of interest campaign.
“We are seeing more and more people looking for this type of investment, particularly given the uncertainty around interest rates and building costs,” said Harris.
“Property investors are seeking alternative ways to grow their money at the moment and the residential yield is remarkably lower than that of commercial or retail. Add to that the rising costs of construction, as well as a housing affordability and rental crisis and these multi-accommodation properties are the ideal investment.”
The property is currently fully occupied, with a manager taking care of operations, and boasts a lucrative income stream at approximately $455,260 gross and $274,941 net per annum.
The property sits within the Southport Priority Development area and is within close proximity of amenities including public transport, medical, retail and entertainment.
With development potential also including use as a affordable housing or low cost hotel accommodation.
The site is zoned High Rise and High Density Residential, allowing for a wide range of potential commercial and medical uses.
The boarding was also updated back in 2014 to include two disabled access rooms, plus ramps and a disabled access bathroom.
“White Street Lodge is a unique accommodation offering in the heart of Southport, just a short walk to the Broadwater Parklands and within the Gold Coast’s Central Business District,” added Harris.
Recent accommodation sales managed by Avanti have included the Capri Country Club in Mulwala NSW for $5.15 million, Pacific Palms at Elizabeth Beach on the NSW Mid North Coast for circa $7 million.
While last week, Singapore-listed Far East Orchard listed the Rendezvous Hotel Perth Central after more than a decade of ownership.
The expressions of interest campaign for White Street Lodge is scheduled to close on 25 September 2025.
Retail
Chelsea Heights, VIC
A recently refurbished and remodelled freestanding KFC has entered the market, offering a “set and forget” blue-chip investment, with a 15-year lease term in place plus three additional 10-year options.
The 2,790sqm Commercial 2-zoned landholding at 2-16 Piper Drive has been occupied by KFC since 1992 and benefits from a prime co-location directly adjacent to a McDonald’s and a combined traffic flow of over 55,000 vehicles daily.
Stephen Bolton and Rick Silberman from Savills are managing the sale via an expressions of interest campaign closing on 9 October.
Savills is expecting interest from investors at an approximate 5.00% return on the current passing net income.
“We anticipate strong demand from private investors, syndicators, and funds alike. The stability and long-term growth potential offered by this asset are difficult to find in today’s market.”
Prospect, SA
Two retail shops at 102-102A Prospect Road in the inner-north shopping and dining hub have hit the market with expectations of circa $1.5 million.
The shops comprise 175sqm in total an Urban Corridor-zoned 641sqm site, with on-site car parks, that is currently leased to fashion boutique Montaigo and hair salon SJ Establishment, returning $80,503 per annum plus outgoings and GST.
Yee Ng and Simon Lambert from McGees Property have been appointed to manage the sale on behalf of private vendors, with the property set to go under the hammer on 26 September.
“This is a prime commercial property in a vibrant, rapidly evolving area, surrounded by top cafés and restaurants, and significant nearby developments are enhancing Prospect’s appeal as a premier business location,” said Ng.
Noarlunga Centre, SA
Retail space in a former Bunnings Warehouse redevelopment in Adelaide’s southern growth corridor is up for grabs, in one of the city’s most expansive large format retail offerings of the year.
The 12,096sqm large format retail space at 206-210 Beach Road, Noarlunga Centre, is proposed to be redeveloped into modern showroom spaces with new shopfronts and façades.
Dallas Sears and Craig Feely from McGees have been appointed to manage the leasing campaign on behalf of the owner, ASX-listed REIT BWP Trust.
Available spaces include showrooms spanning from 1,800sqm all the way up to an entire building tenancy, depending on potential tenant needs.
With a 268sqm fast food pad site also available, which is the first fast food site in the precinct visible coming off the Southern Expressway.
“This is an excellent opportunity for businesses to establish a high-profile, well- connected presence in the heart of the major retail and commercial area of Adelaide’s southern growth corridor,” Sears said of 206-210 Beach Road,” said Feely, director at McGees.
“The corner site sees 34,500 vehicles going past per day, and offers easy access to the Southern Expressway, making the site highly visible and easy to get to.”
The spaces also boast excellent signage potential, in addition to rear delivery access and ample car parking.
The property sits within a broader retail precinct that is anchored by Colonnades Shopping Centre, plus the relocated Bunnings, Harvey Norman, Fantastic Furniture, Spotlight, Anaconda, JB Hi-Fi, Officeworks, BCF and Rebel Sport.
“Within just a short 10-minute drive alone there’s a captive audience of 87,467 residents, and the broader catchment is projected to grow very strongly over the next decade and beyond, underpinning demand and trade prospects,” added Feely.
“We’re expecting interest from local and national retailers all looking to be part of southern Adelaide’s growth story.”
With the population of the City of Onkaparinga anticipated to grow to over 209,000 people by 2041, an addition of nearly 30,000 residents.
Joondalup, WA
Major Perth destination for furniture, home improvement, bedding, homeware, pet supplies and fitness, Joondalup Square has hit the market.
Constructed in 2013, the centre features a total lettable area of 13,216 sqm spread across three freestanding single-level buildings, with a combined area of 27,598 sqm. There are 14 large-format retail (LFR) tenants and five specialty stores including Amart Furniture, Beacon Lighting, PetO, Bedshed, Kitchen Warehouse, Forty Winks, Adore Home Living, and Barbeques Galore.
The buildings are fully committed and there is room for an additional 1,280 sqm with tenant offers in place.
The centre offers at-grade parking with 352 car bays and benefits directly from the foot traffic generated by the adjacent Bunnings.
Joondalup Square is strategically positioned to capitalise on its expansive trade area that encompassing Joondalup and the surrounding suburbs. This catchment extends 45 kilometres to the north and 10 kilometres to the south. The rapidly growing population base is projected to reach 564,264 residents by 2041.
Colliers’ James Wilson and Cygnet West’s Wayne Lawrence are jointly managing this opportunity via an Expressions of Interest (EOI) campaign, closing on Thursday, 26 September 2024.
“Its integration with Bunnings and prominent positioning makes Joondalup Square the best located centre in a precinct that trades exceptionally well,” Lawrence said.
The vacancy rate across Joondalup for this asset class is less than 3.5%.
Nationally, there remains limited new supply forthcoming, with new supply levels being 33% lower than that seen in 2021. Colliers data shows that Perth’s forecast LFR supply out to 2026 currently only represents 53,125 sqm.
Wilson said LFR has recorded a 53% increase in transactions highlighting the strong domestic and offshore investor interest for sub sector. Despite this, Joondalup Square is only the second capital city LFR centre to be publicly marketed in 2024, and Western Australia has experienced only two deals since the beginning of 2023.
Recent sales have seen HomeCo Daily Needs REIT’s $54 million off-market divestment of HomeCo Ballarat in regional Victoria, while ASX-listed BWP Trust offloaded a commercial site former Bunnings Warehouse in Lake Macquarie for $20.5 million, MLC Asset Management nabbed a brand-new centre on the NSW South Coast for a $57 million.
Commercial real estate investor Whitmore Property is launching a new large format retail fund that is targeting $150 million in assets tenanted by household brands including Supercheap Auto, The Good Guys and Subway.
Industrial
Braeside, VIC
Two adjoining land-rich industrial assets have come up for sale in the tightly held Braeside industrial precinct, in Melbourne’s south-eastern bayside region.
The assets at 9 and 10 Haymer Court, Braeside return a total passing income of $361,296 per annum across two tenancies. The industrial warehouses have a combined building area of 3,513 sqm with a low site coverage of 41%, offering ultimate future development flexibility. The assets sit on a combined land holding of 8,496 sqm, providing a multitude of redevelopment and repositioning opportunities (STCA).
Colliers agents Luke Lowden, Sam Hibbins, Daniel Telling, and Nicholas Simon are managing the expression of interest campaign.
“The south-east is a highly land-constrained market, with consistent rental/capital growth prospects and will further benefit from the rapid growth of e-commerce and last-mile logistics,” Lowden said, adding that the property is “perfectly positioned for final mile distribution” with access the Mordialloc Freeway, Dandenong Bypass, and EastLink.
Total stock in the Melbourne south-east submarket has reached 7.3 million sqm, according to Colliers. Vacancy rates fell to record lows of 0.1% in March 2023, but have now slightly eased to 1.0%, largely due to the backfill of secondary facilities, although only two prime buildings are currently available.
Social Infrastructure
Maleny, QLD
A Sunshine Coast private mental health facility in a retreat setting has been put to the market in a sale and leaseback offering, with expectations of $10 million.
The property at 67 McCarthy Road, in Maleny, is being offered with a 20-year leaseback plus four five-year options to Palladium Private, part of the Sana Health Group, which in turn is majority-owned by mid-market healthcare-focussed private equity investor Genesis Capital.
Sana have treated over 5,500 clients who have completed their programs treating the underlying causes of addiction, depression, anxiety, trauma, PTSD and C-PTSD.
The facility has significant onsite infrastructure, catering for up to 24 guests across eight private cabins, plus communal and group therapy amenities. These include a 25-metre swimming pool, spring-fed magnesium pool, steam room, sauna, gym and a main building for guests to have meals, yoga, psychology and massage therapy sessions plus dedicated registered nurse’s room.
A major refurbishment has been undertaken by the vendor as well as expansion of the accommodation option from 18 to 24 beds, with new cabins being installed this year. An approved development application is in place for construction of a lakeside group therapy facility and existing gym extension.
An offers to purchase campaign is being run by Sam Biggins of Knight Frank, closing Thursday, 17th October.. The price guide reflects a yield of 8.00%.
Biggins said the Palladium Private facility offered an incoming purchaser a secure income stream with a backed by private equity over the medium term, but it also has the added benefit of upside through further expansion.
“The facility has operated for more than 20 years and the vendor’s recent investment has been driven by their desire to ensure the facilities are suitable to their requirements for the long term, with the property being offered to the market with a 20-year leaseback in place.”
Biggins said the mental health property sector in Australia had generated substantial investor interest in recent years.
“This attraction stems from the sector’s solid market fundamentals, driven by demand and influenced by macro-demographic factors.”
Development Site
Manly West, QLD
Silky Oaks Children’s Haven is seeking expressions of interest to help determine the future of a development-ripe site in Brisbane’s eastern bayside suburbs that has been home to the not-for-profit for the past 78 years.
The 25,059 sqm site at 218 Manly Road in Manly West is currently used to deliver child safety-related services for children and teens, housing and homelessness support for individuals and families, and is also occupied by a 57-place early learning centre, an op shop and a general practice medical facility.
Comprised of three allotments, part of the site is currently zoned low density residential, while the early learning centre is zoned CF4 community facilities. Due to the size and location of the property, there is potential for a wide range of land uses.
The majority of the services currently offered at the site will be relocated, with the exception of the early learning centre, which will remain there under the control of Silky Oaks.
Knight Frank agents Christian Sandstrom and Sam Biggins, have been appointed by the owner, Silky Oaks Children’s Haven, to run an expressions of interest campaign for the site to understand its potential future use. It is the first time in 85 years the property has been put up for grabs.
Knight Frank told Australian Property Journal the campaign will seek submissions for multiple development outcomes with a preference for part or whole of the site to be offered on a long-term ground lease or outright sale, including a new purpose-built 120-place early learning centre which will adjoin Manly State School.
A price expectation figure couldn’t be provided given the range of possible outcomes and that the campaign may not end up with an outright sale.
Interest from potential occupiers and developers is expected.
Uses on the site include seniors’ living accommodation, residential, allied health and education operations, given its mixed-use zonings.
“The site, ideally suited to medium-rise projects, will be in high demand by both builders and developers given the shorter construction time frames, which are typically 12 to 15 months,” Sandstrom said.
He said sites of this scale and development potential are very limited in the suburb.
The land occupies a ridgetop location with views overlooking Moreton Bay to the east and the Brisbane CBD to the west, and is regular shaped and has two street accesses which allows for the site to be developed in stages.
Expressions of interest close Thursday, 17th October.
Residential
More than $20 million is expected for a mixed-use block with 43 social housing apartments in Sydney’s western suburb of Merrylands.
The property at 315-323 Merrylands Road comprises 44 residential apartments in all, and four retail shops, above 69 car spaces over two basement levels.
The social housing component means 92% of the property’s income is derived from the NSW Land and Housing Corporation, and gross passing income is just over $1.46 million per year.
Thirty-six of the 43 NSW Land and Housing Corporation tenants were renewed in recent weeks for a 12-month period, increasing the rents by 40% on average, and the remaining eight are currently under negotiation in anticipation of their lease expiries in October. On that basis, a gross market income figure of more than $1.531 million is estimated.
Completed in 2019, the property is on 2,076 sqm of land and a has 4,985 sqm in total strata area and was recently strata subdivided.
The complex is located 25 kilometres west of the Sydney CBD and two kilometres south of Parramatta CBD. Merrylands is the largest town centre and suburb within the Cumberland local government area, and the complex is 400 metres from Stockland Mall and 800 metres from Merrylands Station.
Colliers agents Matthew Meynell and James Cowan have the listing on behalf of vendor, Costa Nicodemou of Newpoint Advisory.
Colliers told Australian Property Journal interest is expected from social housing groups, government bodies, co-living operators, and onshore and offshore general investors, to name a few.
“With the low level of completions throughout 2022, 2023 and 2024, there is an alarming undersupply of apartment stock in this location which is a concern due to the affordability crisis that freehold dwelling prices have created,” Cowan said.
“We expect investors will take this into consideration when conducting their due diligence and ultimately competing on this opportunity.”
Within NSW, net overseas migration was forecast to reach a record high 174,000 in FY2023.
“This alone demonstrates the sharp supply cliff we have already reached and until meaningful stock is delivered to the market we will continue to see strong rental and price growth,” Meynell said.
The median apartment price in Merrylands is $479,500, whilst the median house price is $1,265,000, meaning the average house is 2.6 times more expensive than the average apartment.
“The apartments are considered a premium offering in the Merrylands market given their high-quality finishes, well-appointed layouts and ample parking allocation,” the agents said.
The expressions of interest campaign closes on Thursday, 10th October.
Office
Summer Hill, NSW
A three-level commercial freehold in the heart of Summer Hill, in Sydney’s sought-after inner west, is expected to attract interest from investors, occupiers and developers.
Located at 60-70 Parramatta Road, the 3,907 sqm property is jointly owned by Montessori Academy, one of Australia’s largest childcare providers, and computer support and services provider Nexon Asia Pacific, both of whom are occupants.
It has extensive frontage to Parramatta Road and features an extensively refurbished office with on-site car parking for circa 50 cars.
CBRE’s Robert Dowdy and Ray White Commercial City Fringe’s Kristian Morris have been appointed to manage the sale via an expressions of interest campaign.
The agents declined to give out a price. Sources told Australian Property Journal the property was likely to attract around $18 million.
Dowdy said Summer Hill is a major inner west growth suburb.
“Astute investors, occupiers and developers will see this property as an outstanding opportunity to secure one of the last three-level commercial freehold assets in Sydney’s inner west. Potential buyers are already circling the property, given its great location and blue-chip lease to Montessori Academy and Nexon Asia Pacific, and we expect to see even more interest in the coming weeks.”
Morris added sites of this size rarely come to market, especially with a substantial building, secure tenants, and parking for more than 50 cars.
The property has direct access to main arterial roads and is within walking distance to Taverners Hill light rail and train stations.
Expressions of interest close Tuesday, 1st October.
