NEWS PROPERTY

The Williamstown Junction Guest House and Lodge, which is in Newport, has sold to a Sydney-based owner operator, who will retain its use as a boutique accommodation venue. Identified by a distinctive 1875 bluestone cottage, 481 Melbourne Road sits on a 1606 square metre site zoned General Residential – which meant it could be marketed to non-hospitality users, including aged care, or education providers. After failing to sell following a campaign managed by another agency last year, CVA’s Bradley Ellul recently auctioned the property, where it achieved a price of just over $3 million. Three bidders competed for the property which is about 400 metres from the Newport train station, seven kilometres south-west of Melbourne.

Shepparton private developer Delcorp has offloaded the freestanding BWS Liquor store at 101 Queen Street in the Victorian country town of Cobram for $1.55 million. The sale of the 444 sq m build-and-sell property on a 989 sq m site achieved a yield of 6.19 per cent. A doctor bought the property for his self-managed super fund. CBRE’s Joseph Du Rieu, Kevin Tong, Tim Last and Ashlea Drew were responsible for the sale.

The Waldorf Stadium Apartment Hotel in the heart of Auckland CBD is on the market for sale through Colliers International Hotels and CBRE Hotels. The 178-unit strata title development is to be sold subject to a new 11-year performance lease underpinned by Japanese serviced apartment conglomerate Daiwa House Group, which has a market capitalisation of US$19.150 billion as at December 2017. The entity has recently acquired the Australia and New Zealand Waldorf serviced apartment business with further plans to expand in the region.

ASX-listed pub investor Hotel Property Investments has bought its first accommodation property with the acquisition of Quest Apartment Hotel in Griffith, NSW for $15.25 million. The purchase represents a strong yield of 7.5 per cent. The long-term lease to the Quest franchisee has a remaining initial lease term of over 13 years. HPI owns a range of pubs mainly located in Queensland and declared a portfolio valuation of its 43 properties of over $663 million as at end of December 2017. HPI’s holdings include the Regatta Hotel, Cleveland Sands Hotel, Ferry Road Tavern, Southport and Crown Hotel in Lutwyche. It also owns specialty stores located on the pub sites.

Cooroy developer Ron McCarthy has purchased a key property, the Cooroy Motel, on the town’s east side, following his selling of the Cooroy Hub sports club and Energex land recently. The purchase, while not yet fully through settlement, follows high speculation about the future of the eastern side of the town, given its population growth. The motel is run-down, with a number of caravans reportedly located in its rear area, housing some long-term tenants. Mr McCarthy, who has been outspoken about the need to rejuvenate the “Gateway to Noosa” along Elm Street to the Diamond Street intersection, said he would not be running it as a motel, but did not elaborate on what it could instead be.

Chef Guy Grossi is part of a consortium selling a retail asset near the top of Bourke Street. The 1880 double-storey former warehouse at 72-74 Bourke Street is expected to sell for more than $5 million. It is leased to modern Italian restaurant Bottega – which is run by Denis Lucey, who also owns the Bistro D’Orsay opposite the Westin Hotel in Collins Street. Guy Grossi and his wife Melissa, along with two other investors, paid $2.375 million for this property in late 2001. It is between two of Melbourne’s most popular eateries – Grossi Florentino at 80 Bourke Street and Pellegrini’s (# 66). Savills Clinton Baxter, Nick Peden and Benson Zhou are marketing the property, which on a 198 square metre plot, offers airspace redevelopment potential.

The $100 million-plus sale of a prime waterfront, historically significant, St Kilda site, appears a certainty, following the strong reception to a recent campaign, with nine offers received. The eight-storey, 211-room Novotel Hotel, sits on a 5791 square metre site at 14-16 The Esplanade, about six kilometres south of town. It was offered with a permit for a new Metier3 designed residential complex containing 234 apartments, again over eight levels. For 42 years, until it was destroyed by fire in 1981, the site accommodated the St Moritz ice skating rink, a then-popular Melbourne meeting spot. The St Kilda site is being offered by Barana Group, the company of Sydney developer and hospitality investor Greg Shand. Barana Group paid $50 million for the asset following a public sale campaign six years ago. It hit the market in February asking more than twice that amount via CBRE’s Mark Wizel and Josh Rutman with Colliers International’s Trent Hobart and Bryson Cameron.

A private hotel developer and operator has paid $12.2 million for a hotel-approved site at 2-8 Sarah Street in Mascot, close to Sydney airport, with plans to build an eight-level property with 169 rooms. The approval includes a business centre, a gym, a sky-bar lounge on level 8 and 69 car spaces. The corner 1498 sq m site comprises two adjoining older style office-warehouse buildings and drew 25 offers. It was sold vacant by the first mortgagee on the property, through Colliers International’s Michael Crombie and Christopher Milou.