This article is from the Australian Property Journal archive
SENTINEL Property Group has acquired its first Melbourne asset, paying $20 million for Virgin Active health club at 138 Bourke St.
The building comprises 4,816 sqm of retail spac and is fully leased to Virgin Active health club until July 2024. It is the largest Virgin Active gym in the southern hemisphere.
The modern facility, which underwent a $14 million refurbishment in 2009, also provides the potential for a future development opportunity, subject to council approval, and is located adjacent to a proposed 90-level residential tower.
Sentinel managing director Warren Ebert the group was committed to continuing to expand its property portfolio in key locations throughout Australia, and Melbourne was central to the group’s ongoing growth plans.
The Melbourne acquisition continues the Brisbane-based group’s strong expansion into southern states this year. It has purchased three properties in New South Wales in 2013, on top of the 13 properties in Queensland acquired since the company’s inception in 2010.
“Demand for prime Melbourne CBD retail properties continues to intensify from both Australian and Asian buyers, as evidenced by the recent surge of record sales in the city.
“The fundamentals of Melbourne CBD retail will only keep on improving with consistently low vacancy rates, a low interest rate environment and record buyer enquiry.
“Our 138 Bourke St asset is a true landmark property in the Melbourne CBD boasting an outstanding location, high-profile exposure and strong demographic profile, underpinned by a long-term lease to a prominent international retail tenant,” Ebert said.
Sentinel’s 138 Bourke St property was acquired by the Sentinel Bourke St Retail Trust which has a forecast year one distribution of 9.75% p.a. increasing to 10.25% p.a. year two and 10.75% p.a. year three.
With the addition of the new Melbourne property, Sentinel now has a national portfolio of 17 properties in the commercial office, industrial and retail bulky goods sectors, with a combined total value of more than $350 million.
Property Review