Weekly Transaction Update - 25th January 2019
This week we recorded 5 major transactions worth $336M
Landream pay $200M for Pyrmont Site
Following plans to scrap a new public school for Pyrmont on the site, the Sydney City Council have sold a 1.2ha site in Wattle St, Pyrmont to Landream for $200m. The Melbourne-based developer is also behind the Opera Residences project at Circular Quay with Chinese Development partner Macrolink.
The council's sale to Landream is conditional upon the provision of a 91-place childcare centre and a two-court indoor recreational centre. The site has approval for approx 48,000sqm of floor space which will predominantly be used as apartments, though commercial uses will also be considered.
Settlement of the sale will be conditional upon an acceptable development approval from Council.
The sale at $200m represents a rate of $16,000psm of site area which compares to the recent $61M sale at 21 Harris Street at $20,033/sqm.
The surrounding Pyrmont precinct is set to be transformed by the redevelopment of the Sydney Fish Markets, the harbour foreshore and Wentworth Park. The site is also adjacent to the Light Rail providing good access back to the city.
CBRE acted for the City Council on the sale.
Woolworths sells Mernda Town Centre
Woolworths is set to sell the Mernda Town Centre for $50M after developer Land Capital entered an exclusive due diligence period.
Woolworths acquired the 24.9 hectare site in 2010 for just $28m and lodged an application with the Whittlesea City Council for a mixed-use development that will include a new 3,77sqm full-line supermarket and shops adjacent to a proposed new metro railway station.
Mernda is about 27km north east of the Melbourne CBD. The recent extension of the South Morang rail link now provides the Mernda corridor with access to rail transport direct to the Melbourne CBD.
The 24.9 hectare site will ultimate comprise a mixed use development including retail and high density housing.
33 Argyle Street Parramatta sold for $40m
Tong Eng & Roxy Pacific have acquired 33 Argyle Street, Parramatta for $40.8m. The vendor, the New South Wales Aboriginal Land Council decided to sell the building having acquired it in 1992.
33 Argyle Street is a B Grade core commercial asset with close proximity to the Parramatta Interchange, Westfield and Parramatta Square.
Previously known as the Ernst and Young Building, the B-grade office building is situated on 2,046 square metre site and comprises circa 5,247 square metres NLA across nine levels. The property’s tenant mix includes Property NSW, the Aboriginal Legal Service and NSWALC.
The sale price represents a passing yield of 4.93% and a fully let initial yield of 5.25% and a rate of $7,730/NLA.
Roxy and Tong Eng Group have partnered several times in the acquisitions of commercial assets including 117 Clarence Street, Sydey which they acquired in 2015. Separately Ting Eng have also been acquisitive in Melbourne with acquisitions in Burwood East and St Kilda Rd areas.
The Argyle Street acquisition will be 40% owned by Roxy Pacific with a private investment company of Teo Tong Lim, Group Managing Director of Tong Eng Group owning the balance.