This article is from the Australian Property Journal archive
A COMPANY tied to Beijing Construction Engineering Group International has paid $6.5 million for the old The Mill and Red Lion hotel site in Wagga Wagga, in regional NSW.
The deal was brokered by Chesterton International and Ray White Rural Wagga Wagga on behalf of PPB Advisory as receivers and managers of the site.
Chesterton International’s managing director Andrew Hunter said the transaction reflects the renewed confidence from Asian investors in the Australian market and the increasing interest they have in acquiring land in regional areas.
“Asian developers are starting to look outside of Sydney for other opportunities, so while we have seen a lot of large deals occur this year in the CBD we will start to see Asian buying activity increase in regional markets where land is more readily available,” he added.
Recently Chinese buyers have been involved with the $80 million purchase of Australia’s fourth largest sugarmill in rural Queensland, Magenta Shores recent sale to a Chinese group for approximately $40 million, Trafalgar Corporate Group’s sales of a NSW development to an Asian developer in 2009 and the $13.56 million deal of a Burwood development site purchased by a Chinese consortium of developers.
Turner said the Wagga Wagga property has potential for a range of uses due.
Located on the corner of Edward St (Sturt Highway) and Little Flinders St, the site spans 2.5ha and is DA approved for a mixed-use development including 15 retail shops, construction of an 80 room hotel, a restaurant and 509 parking spaces. A hotel and silos are currently on the site.
The Wagga Mill building and silos were classified by the National Trust in 1982 as an item of environmental heritage as the mill was a source of major industry in Wagga Wagga and a significant producer of flour for both the domestic and export markets.
“Wagga Wagga is a prime area for Asian investors who are looking for opportunities in major regional centres with solid growth prospects. Recent rezoning of the site also provided a greater range of uses, helping the sale,” Hunter concluded.
Australian Property Journal
