NEWS PROPERTY

A private local developer has purchased a 734sq m development site fit for a 30-room new generation boarding house at 17 Arthur Street, Punchbowl, in western Sydney for $2.6 million. Knight Frank’s Terry Hassan and Anthony Pirrottina sold the property.

Estia has leased a 538 sq m office suite from Far East Organization on part level 9 at 227 Elizabeth Street in the Sydney CBD paying a gross annual rent of $850 a square metre. Colliers International’s Jock Gilchrist and Tom Buxton worked on the five-year lease with WSP’s John Siciliano. Kernel’s Giles Knapman represented Estia Health.

Private owners have exchanged a newly completed medical centre at 373 Warnbro Sound Avenue, Port Kennedy in WA for $2.9 million at a 6.22 per cent yield. Vend Property’s Jeff Klopper sold the architecturally designed, one-storey building for a private owner.

Two medical centres in St Albans and Sunshine West in Melbourne sold at auction for a total of $3.365 million. The Melbourne IVF tenanted 150sq m property at 192 Furlong Road, St Albans, sold for just over $2 million at a yield of 2.48 per cent. The vacant 198sq m Sunshine West property at 103 Glengala Road sold for $1.35 million. Owner-occupiers bought both properties. Savills Australia’s Mark Stafford, Jesse Radisich and Nick Peden acted on the scale.

A Hong Kong buyer has snapped up a medical clinic at 1-11 Dunnings Road, Point Cook in Melbourne’s west for $9.3 million on a yield of 4.89 per cent. The centre, approved for 25 medical practitioners on a corner 5332sq m site, has 80 car spaces. CBRE’s Sandro Peluso, Josh Twelftree, Kinson Wong and Bianca Butterworth sold the property for local pharmacists Tony Maher and Ashim Marfatia.

The Legacy Club of Cairns will sell its unit complex in Rowe and Barr streets, Earlville to fund future projects. Treasurer David Smith said the sale would mean a “much better use of resources, benefiting all beneficiaries of Cairns Legacy for many years to come in terms of its support programs throughout Far North Queensland”. Cairns Legacy built the complex and has maintained the 18 fully self-contained units for more than 20 years and will help resettle residents and their families into suitable alternative accommodation over the next two years. Cairns Legacy will lease the building after sale until 2020. Colliers International agent Jay Beattie has called for expressions of interest in the property.

The Department of Health and Human Services (DHHS) has sold a 4607 sq m block of land at 1-9 Allen Street in Oakleigh, Melbourne to a local developer for $9.12 million in an off-market sale. Savills’ Julian Heatherich, Nick Peden and Mark Stafford brokered the deal.

A syndicate has snapped up aged care provider Benetas’ head office in East Hawthorn, paying $24.65 million on a 5.5 per cent yield. The deal, struck at a value above expectations, shows the strength of Melbourne’s suburban office market where yields have already compressed 75 points in the past year. The two-storey 4000 square metre building at 785-789 Toorak Road is 94 per cent leased to seven tenants with a slender two-year average lease term. Colliers International agent Peter Bremner, who negotiated the deal with JLL agents Josh Tebb and Marcus Quinn, said the suburban office market is “very very strong”. “We can’t get enough stock. Anything we get sells,” Mr Bremner said. The buyer, a local syndicate, has plans to reposition the slightly underlet building which is close to the Monash Freeway and Tooronga Shopping Centre. Rents have been rising in the inner eastern market and incentives falling as tenants are priced out of the fringe office precincts. Contracts were exchanged within a week of the expressions of interest campaign closing, he said. Eight strong offers were made for the building, mostly by local buyers, Mr Tebb said.