Ray White Portfolio Magazine December 2020 - Special Projects

P O R T F O L I O DECEMBER 2020

COMMERCIAL PROPERTY YEAR IN REVIEW Hat-trick of sales as market fires up in Brisbane’s north

Quality retail investments still selling through Melbourne lockdown

Commercial property listings from around Australia and New Zealand

ANDREW FREEMAN Head of Agency Operations

Have we turned the COVID-19 corner?

With the arrival of summer and the warmer months ahead, it is great to see the beginnings of more people moving around our various markets.

Almost immediately following the announcements regarding the easing of border restrictions, Qantas and Jetstar reported a surge in flight bookings. Similarly, The Trans-Tasman movement is continuing to grow the international tourism market with the ever-evolving ‘Travel Bubble’.

The Melbourne CBD is continuing to be a challenge right now with government restrictions still encumbering a return to the office.

Many businesses and CEO’s are reporting a desire to bring their teams back into the collaborative working environments with male workers most keen to get back to the office.

Investment, industrial and medical assets continue to be the preferred acquisition of many buyers. However, it is clear that despite any uncertainty, there is still a strong appetite for commercial property.

There has also been an uplift in online businesses seeking short-term leasing opportunities to take advantage of post-pandemic lockdown spending across our major markets.

I would like to say a heartfelt thank you to all our loyal clients for the support you have given to the Ray White Commercial network throughout Australia and New Zealand in 2020.

We are so privileged to have such strong international relationships and we collectively look forward to supporting your commercial needs into 2021, and beyond. Have a very Merry Christmas and a happy and safe new year.

QUICK JUMP TO A REGION QLD

NSW

VIC

NZ

PORTFOLIO | Ray White Commercial | 3

BENTLEIGH EAST RETAIL INVESTMENT SMASHES ONLINE AUCTION RESERVE A FREEHOLD commercial retail investment with longterm tenancies has smashed its reserve price by $101,000 at auction as 709 Centre Road in Bentleigh East sold for $926,000.

The asset, that came with 180sqm* of building area on 150sqm* of land size, was marketed during Stage Four lockdown and taken to auction at the earliest opportunity after the easing of restrictions.

The property was marketed and sold by Ray White Commercial Oakleigh Sales/Leasing and Operations Manager Ryan Amler.

“The campaign, despite its restrictions, still attracted more than 60 enquiries and that turned into 13 private inspections as the opportunity proved highly sought-after,” Mr Amler said.

“Four of the seven registered bidders battled it out on the day, and it was that competition that drove such a great price *Approximately.

4 | PORTFOLIO | Ray White Commercial

– the highest offer we had received prior was $700,000.

“The property offered a prime freehold retail premises with separate two-bedroom residence within one of Melbourne’s most highly sought-after and in-demand south-eastern suburbs.

“This is a thriving local shopping hub with everything that the local residences would want and need for their day-to-day essentials.

“The asset features two components - a tenanted shop front (currently leased as a nail salon) since 2017 - as well as a separate two-bedroom residence.

“The property is also easily serviced and accessible via Nepean Highway, East Boundary Road, Warrigal Road, North Road, and South Road. The sale price reflected a 4.4 per cent yield.”

HAT-TRICK OF SALES AS OWNER-OCCUPIER MARKET FIRES UP IN BRISBANE’S NORTH THE Moreton Bay Region suburb of Brendale has become a hotbed of owner-occupier activity in recent times as three commercial properties sold for a combined total value of $5,900,000.

The properties were marketed and sold by Ray White Commercial Queensland Managers Aaron Aleckson and Andrew Doyle and Director – Brokerage Services Paul Anderson.

The stand-out sale of the three came at 14 Maxwell Street as the trio sold the 1,403sq m* office and warehouse to owneroccupier Tara Forklifts for $2,760,000.

Elsewhere, 1/25 Kingsbury Street sold to an owner-occupier in the wholesale goods field for $1,760,000 and 2/25 Kingsbury Street sold to owner-occupier Smenco Welding Equipment for $1,380,000.

“These three sales in the New Base Estate shows that Brendale and the north Brisbane market as a whole are still in a great position,” Mr Aleckson said.

“Unit two at 25 Kingsbury and 14 Maxwell Street were sold sight unseen by the directors of the companies - with the local managers making the final decisions due to COVID-19 restrictions set in place. It was a real compliment to the design and construction of the buildings.”

“It’s great to see the owner-occupier market heating up in Brendale. A lot of the previous sales have been to investors, however, as interest rates continue to fall, there’s no better time for companies that have been leasing to purchase their own premises,” Mr Doyle said.

“IDG Group, who developed 14 Maxwell Street, currently has two more buildings under construction in the area. Both 16 and 20 Robertson Street, Brendale,” Mr Anderson said.

“Both are freestanding buildings being 2,786sq m* effectively.

Judging by the overload of inquiry on 14 Maxwell Street, these two will surely go fast.”

The Brendale industrial market has really matured over the past couple of years,” said Director of IDG Group Garry McNamara.

PORTFOLIO | Ray White Commercial | 5

“This is obviously driven by the lack of supply in areas like Geebung and Eagle Farm, but also due to the tremendous improvements in roads and logistics accessing this newer Brendale industrial area.

*Approximately.

6 | PORTFOLIO | Ray White Commercial

“The new estates, like here at New Base and where our next two projects are based in the adjoining CSR estate, have provided affordable and practical-sized opportunities for many local small to medium enterprises.”

SYDNEY’S INNER WEST RETAIL STRIPS

VANESSA RADER Head of Research

There has been much speculation regarding the longevity of the retail asset class due to the onset of COVID-19 and the rapid growth of online shopping. The local retail strip market has been through an evolution over the past 10 years with a rapid decrease in some retail types such as clothing and soft goods as the reliance of consumers both on large shopping centres and online retailers had been emerging.

The latest data update saw vacancies rise slightly to 12.80 per cent, with a small increase in services to 30.97 per cent, and cafes to 26.93 per cent. Over this time, we did see a number of businesses change hands with some food establishments leaving the strip, however with new businesses in its place, once a strong European influence has now made way to a growing Indian and Asian food offering.

As such, we have seen many retail strips change their tenancy mix to be more food heavy with strong gains recorded over the past few years on food retailing as well as service orientated industries which rely on a physical need to attend a shop, such as hair and beauty services.

Norton Street, Leichhardt, NSW Retail Mix and Vacancy

With such a large part of the population working from home this year there has been some conjecture surrounding local retail and would we see many small businesses unable to keep their doors open or would the at-home population stimulate local businesses?

There is no doubt that takeaway meals have grown in popularity given the increase in Uber Eats and similar delivery options aiding many of these businesses, while the at-home population is looking for local coffee, hairdressers, or even medical professionals - and are perhaps now heading to their local strip rather than a CBD location.

This month we have completed a survey of two popular Sydney Inner West retail strips to see how retail has performed during this period of COVID-19. A similar exercise was completed prior to COVID-19 allowing us to analyse the impacts of this pandemic on local businesses and the vibrancy of the retail strips.

The first location we considered was Norton Street, Leichhardt. Historically, this was known as an eat street with a strong Italian influence, however over the past ten years, a changing demographic has seen the profile of this location change. Our survey completed in August last year recorded vacancy across the strip of 10.82 per cent, the strip was heavily reliant on services of 30.33 per cent, followed by the café and restaurant sector representing 26.57 per cent.

Aug-19

Nov-20

0%

20%

40%

60%

Supermarket & Grocery Café’s & Restaurant Furniture, Houseware & Appliance Retailing Other Personal & Household Goods Retailing Pubs, Tavers & Bars

80%

100%

Specilised Food & Retailing Clothing & Soft Goods Recreational Goods Retailing Services Vacant

Source: Ray White Commercial

Darling Street, Balmain has been long considered one of the prime retail strips in Sydney, offering a mix of both food and clothing retailing and being a destination for many Sydney shoppers. This location has seen outstanding results since our last survey in January 2020. Vacancy was already recorded low at this time at 5.20 per cent, however, our recent analysis has seen this compress further to just 4.88 per cent.

Over this period, we have seen a reduction in the clothing and soft goods segment from 9.90 per cent to 8.71 per cent, making way for greater service-related industries now representing 17.75 per cent, up from 16.47 per cent earlier this year. Food remains key for this location with supermarkets, specialty food retailing, and cafes equating to more than 50 per cent of the total retail floor space across the Balmain strip.

PORTFOLIO | Ray White Commercial | 7

Darling Street, Balmain Retail Tenancy Mix Vacant 4.88%

Pubs, Tavers & Bars 6.20% Services 17.75%

Other Personal & Household Goods Retailing 5.23%

Specilised Food & Retailing 7.06%

Recreational Goods Retailing 4.37% Furniture, Houseware & Appliance Retailing 2.61%

Supermarket & Grocery 28.69%

Clothing & Soft Goods 8.71%

Café’s & Restaurant 14.50%

Source: Ray White Commercial

It is clear the pandemic had impacted a number of businesses with a churn in both of these locations of tenants, however, it has been encouraging to see so many new or relocating businesses take up this space during this difficult period.

While many landlords have had to navigate this unprecedented time of retail relief and greater flexibility with new tenancies, the confidence to transact during this difficult time is a testament to the underlying strength seen in the local economy.

To read our full Between the Lines report on these local retail markets, visit our website and download the full version at www.raywhitecommercial.com/research

Vacancy: 12.80 per cent Number of vacant shops: 19

Services: 30.97 per cent Cafés and Restaurants: 26.93 per cent Specialty Food: 5.27 per cent Pubs, Bars, and Taverns: 8.51 per cent

Source: Ray White Commercial

8 | PORTFOLIO | Ray White Commercial

White & Partners is a real estate investment and advisory firm that forms part of the White Family Group of companies.

Investment - We invest on behalf of the White Family and investors, from family offices, high net worth individuals and our development partners. We aim to create value by partnering with extraordinary people to deliver on a range of residential, office, industrial and commercial development projects. We seek to generate attractive absolute returns across economic cycles.

Advisory - We provide trusted strategic advice to government, corporate tenants, owners of commercial and prestige residential real estate, as well as wholesale property investors. Our experienced partners lead all engagements and have a proven track record of delivering results.

Debt Management - White & Partners Debt Management (WPDM) was established in 2016 to invest in Commercial Real Estate (CRE) First Mortgage opportunities. WPDM aims to deliver attractive risk-adjusted returns to investors by providing tailored first mortgage lending solutions to borrowers.

WHITE AND PARTNERS AT A GLANCE STRONG RISK ADJUSTED RETURNS

Padstow Park Hotel - Padstow, NSW

Union Place, Jannali, NSW

Acquisition Price - $13.7 million

Acquisition Price - $10 million

Realised return - 25.4% p.a.

Realised Return - >20% p.a

EXPERIENCED AND ACTIVE TEAM

>$1.1 billion Investment team of 17 professionals

Total value of projects invested since 2015

Over 300 years collective property and finance experience

UTILISING THE RAY WHITE ECOSYSTEM Human Interactions

Real Time Data

Access to agents at a suburban level in Australian and New Zealand markets enables White & Partners to understand intricate project details and ‘soft’ intelligence

With Ray White’s global network of over 900 agencies, White & Partners benefit from access to real time data a key input in investment decisions

WWW.WHITEANDPARTNERS.COM.AU

12 | PORTFOLIO | Ray White Commercial

2.61HA* APPROVED SITE 19 LOT SUBDIVISION Lot 51 Kennedy Street, Walkerston QLD

Outline and Locations Indicative Only

EXPRESSIONS OF INTEREST Closing Wed 9 Dec 2020 4pm

• Boutique development opportunity for Builder / Developer • 17 Residential lots range in size from 603m2* to 738m2* (avg. 665m2*) • 2 Rural Res lots 6,088m2* and 6,081m2* respectively • Potential alternative options including MHE (^STCA) • Approval incorporates ROL with OPW design completed • 14km* from Mackay located on main road connecting to Bowen Basin Mining area

Tony Williams 0411 822 544 tony.williams@raywhite.com Fred Dubois 0432 485 143 fred.dubois@raywhite.com

*Approx ^Subject to Council Approval

raywhitespecialprojects.com

SOLID INVESTMENT - CIRCA 10% YIELD 32 Clifford Road, Goondi Bend QLD

Outlines Indicative Only

EXPRESSIONS OF INTEREST

Closing 10 December 2020 at 4pm (AEST) if not sold prior • • • •

Established long term tenant 5 year lease commenced 1 February 2020 (5 year option) Rental: $172,000 pa net plus GST 4,400m2* land area/1,790m2* warehouse/42m2* office

• High clearance warehouse • Drive through facility with full concrete hardstand

John Dwyer 0439 034 010 john.dwyer@raywhite.com Adrian Pascoe 0417 622 240 adrian.pascoe@raywhite.com

*Approx

raywhitecommercialqld.com

NEW BRISBANE CONVENIENCE CENTRE FOR SALE 858 Gympie Road, Lawnton QLD

Artist Impressions Only

SALE

$8,460,000 • • • • • •

Income diversity - Fuel, Convenience Store, Car Wash & up to 3 Food Restaurants Fuel, Convenience Store and Car Wash leased for 15+5+5+5 years Substantial stamp duty saving with fund-thru acquisition WALE 13.05 Years (by Rent) Heavily trafficked corner location on major arterial road with dual direction access Site 900m* south of the newly completed University, 36mins* north of Brisbane CBD

Stephen Kidd 0413 550 474 stephen.kidd@raywhite.com Elliot Kidd 0407 696 738 elliot.kidd@raywhite.com

*Approx

raywhitecommercialqld.com

REGIONAL RETAIL INVESTMENT 23 Denham Street, Rockhampton QLD

Outline Indicative Only

OFFERS TO PURCHASE

Closing 9 December at 4pm (AEST) if not sold prior • Leased to City Heart Medical Centre, Commonwealth Bank and Westpac • Large 2,579m2* site • Net Lettable Area 2,242m2* • Superb onsite parking - 87* open carparks • Estimated net income $429,297 pa

John Dwyer 0439 034 010 john.dwyer@raywhite.com Mark Muldrew 0428 836 675 mark.muldrew@raywhite.com

*Approx

raywhitecommercialqld.com

MODERN OFFICE/WAREHOUSE WITH DEVELOPMENT APPROVAL 292 Montague Road, West End QLD

Locations Indicative Only

AUCTION

Thursday 3 December 2020 at 11am (AEST) Highlights include: • 728sqm* NLA on a 554sqm* site • DA for 5 retail suites and office extension • Existing fit out includes first floor modern office and ground floor warehousing • Mixed use (Corridor) Zoning • Corner site providing dual street access

Michael McCullagh 0403 426 474 mmccullagh@raywhite.com Sam Parker 0434 449 807 sam.parker@raywhite.com

*Approx

raywhitecommercialqld.com

INVESTMENT - FULLY TENANTED MODERN INDUSTRIAL COMPLEX OF 4 UNITS - MACKAY QLD 53 Central Park Drive, Paget, QLD

SALE

$1,935,000 • Estimated net income $155,000 per annum* • Four tenancies ranging from 281 sqm to 340 sqm with a total 1183 sqm of NLA • Exceptional 95.5% occupancy rate average over 7 years from new.

• A balanced mix of local, statewide and multinational tenants • Warehouse & office layout, with ample hardstand and carparking • Tax depreciation schedule available

Fred Dubois 0432 485 143 fred.dubois@raywhite.com

*Approx

raywhitemackaycity.com.au

PORTFOLIO | Ray White Commercial | 13

INFILL DEVELOPMENT SITE^ 11 Curtis Road, Chester Hill NSW

Outline Indicative Only

AUCTION

Onsite on Wednesday 9 December at 10.00am • • • • • •

Site area - 8,714 sqm* Zoned R2 - Low Density Residential Level site with two (2) street access Existing improvements include Chester Hill Bowling Club Offered with vacant possession 1.5km* to Chester Hill train station

Jeff Moxham 0413 838 339 jmoxham@raywhite.com Samuel Hadgelias 0403 254 675 shadgelias@raywhite.com

*Approx ^Subject to Council Approval

raywhitecommercialnsw.com

COMMANDING MIXED USE BEACH-SIDE SITE OF 4,100SQM (APPROX) 9-15 Clifford Street, Suffolk Park NSW

Outline and Locations Indicative Only

EXPRESSIONS OF INTEREST Closing Friday 11 December at 5pm

A mixed-use development site of unparalleled significance, presenting an opportunity to shape the future of Suffolk Park.

• Incredibly rare 4,100sqm beachside destination • 9 freestanding 2/3bdrm units with solid income/huge uplift • Variety of development outcomes or long term investment • The last local offering of its kind

David Gordon 0418 856 222 david.gordon@raywhite.com Will Van den Dungen 0438 130 188 will.van@raywhite.com

rwbyronbay.com

STUNNING HARBOUR VIEWS - GROUND FLOOR OFFICE 10 Darling Street, Balmain East NSW

LEASE

Lachlan Palm 0452 008 887 lachlan.palm@raywhite.com

Contact Agent

• • • •

60sqm* ground floor office Bathroom with shower facilities Stunning Views Excellent transport with busses and Balmain East Ferry on the doorstep

*Approx

raywhitecommercialsydneycityfringe.com.au

RENT FREE MARCH 2021

MULTI USE OPPORTUNITY

LEASE

LEASE

62-64 Australia Street, Camperdown NSW

Contact Agent

PRIME CORNER COMMERCIAL BUILDING • Internal mezzanine (approx. 45sqm) • Incomparable signage opportunities • High clearance shutter door • Rear lane access

146 Norton Street, Leichhardt NSW

Contact Agent

Lachlan Palm 0452 008 887 Kristian Morris 0411 415 297

*Approx

raywhitecommercialsydneycityfringe.com.au

• • • • •

205sqm* over three levels 5m* frontage to Norton St Kitchen provisions & Grease trap Parking for up to 4 cars Suitable for multiple uses (STCA)

Lachlan Palm 0452 008 887 Kristian Morris 0411 415 297

*Approx

raywhitecommercialsydneycityfringe.com.au

14 | PORTFOLIO | Ray White Commercial

WAREHOUSES IN THE HEART OF BAYSWATER 11 and 16/50-52 Malvern Street, Bayswater VIC

Outline and Locations Indicative Only

LEASE

Contact Agent Factory/Warehouse facilities, close to Central Bayswater. Lease both or one.

Factory 11: • Total Building Area: 216sqm* • 4.8m* Roller Door Access • New paint and electrical wiring

• Toilet, reception / office space Factory 16: • Total Building Area: 295 sqm* • 5m* Roller Door Access • Reception / office area, boardroom, toilet facilities and a kitchenette

Mitch Rosam 0402 355 805 mitch.rosam@raywhite.com Paul Waterhouse 0417 660 153 paul.waterhouse@raywhite.com

*Approx

raywhitecommercialferntreegully.com

FREEHOLD WAREHOUSE AND OFFICES 6 Southfork Drive, Kilsyth VIC

Outline and Locations Indicative Only

SALE

UNDER CONTRACT • Factory / warehouse space - 995m2* • Office and staff facilities - 180m2* • Large outdoor area including parking for 22 vehicles* • Dedicated spray booth facility plus a number of storage options

• Roller door access - 5.3m* clearance • Three (3) phase power • Freehold ownership - no body corporate obligations • Vacant possession • Industrial 1 Zone (I1Z)

Paul Waterhouse 0417 660 153 paul.waterhouse@raywhite.com Mitch Rosam 0402 355 805 mitch.rosam@raywhite.com

*Approx

raywhitecommercialferntreegully.com

IMMACULATE CLEAR SPAN OFFICE / WAREHOUSE OWNER SAYS SELL 7/1-7 Canterbury Road, Braeside VIC

ONLINE AUCTION

Wednesday 16 December, 2020 at 1:00pm • • • • • •

Total building area 640m2* Comprising clear span and excellent height (7.1m*) warehouse of 400m2* Front office / reception area of 50m2* First floor mezzanine office area of 190m2* Ample parking with allowances for container loading Vacant possession

Ryan Amler 0401 971 622 ryan.amler@raywhite.com Theo Karkanis 0431 391 035 theo.karkanis@raywhite.com

*Approx

raywhitecommercialoakleigh.com

PORTFOLIO | Ray White Commercial | 15

"THE PREBBLETON VILLAGE" - A BRAND NEW RETAIL HUB 563 Springs Road, Prebbleton, Canterbury, NZ

LEASE

from $350/m2 + GST + outgoings Prebbleton’s long awaited new retail centre is now finally underway which will help service the rapidly growing village of Prebbleton and Selwyn District. Well located on busy Springs Road on the favoured “going home” side of the road. The architecturally designed complex consists of 4 pavilions, a large central customer car park and enjoys a warm sunny north-westerly aspect. Areas available from 100m2* to 597m2* or possibly arranged to suit. Several places have already been secured so don’t delay.

Paula Raine +64 27 221 4997 paula.raine@raywhite.com

*Approx

www.rwcchristchurch.co.nz

Ray White Commercial Christchurch - Raine Blackadder Ltd - Licensed (REAA 2008)

SUPERB 1,100M2* WAREHOUSE/OFFICE 42 Izone Drive, Rolleston, Christchurch, NZ

SALE/LEASE

Paula Raine +64 27 221 4997 paula.raine@raywhite.com

Sale: By Negotiation + GST (if any) Tidy, modern warehouse/office building with canopy over dual container height roller doors. Commanding front office block plus sealed car parking (10) area. Clear span high stud (6-7.3m) warehouse of 960m2* plus offices of 140m2*. Total area is 1,100m2*. Land area 2,000m2. Close to major arterials and inland rail ports. *Approx

www.rwcchristchurch.co.nz

Ray White Commercial Christchurch - Raine Blackadder Ltd - Licensed (REAA 2008)

HIGH PROFILE REFURBISHED MODERN RETAIL/OFFICE 62 Riccarton Road, Riccarton, Christchurch, NZ

LEASE

Brigit Hamilton +64 21 353 341 brigit.hamilton@raywhite.com

By Negotiation + GST + outgoings

Great opportunity to be in the heart of Riccarton with dual access, onsite parking (68) and signage. Excellent high profile location, surrounded by quality tenants including KFC, Caltex, Hells Pizza, Heartland Bank etc. Retail/office space available from 90m2* to 300m2*. Motivated Landlord, extensive refurbishment & strengthened to 67%NBS, ready for you now. *Approx

www.rwcchristchurch.co.nz

Ray White Commercial Christchurch - Raine Blackadder Ltd - Licensed (REAA 2008)

INTRODUCING

RAY WHITE VALUATIONS With over 200 years of combined valuation knowledge and experience backed by Ray White’s national and international presence, we are trusted for our consistent and accurate reporting and are often sought out for our unrivalled research and property advice by homeowners, investors, developers, estate agents and lenders alike.

OUR VALUATION SERVICES Valuations for Commercial Real Estate including Office, Retail, Industrial and Shopping Centres; Valuations for Going Concern including Hotels and Resorts, Pubs, Golf Courses, Childcare Centres, Boarding Houses and Student Accommodation; Valuations for Residential Real Estate including Residential Developments, Prestige Residential Properties, Residential Subdivisions and Unit Entitlement Valuations; Valuations for Corporate and Government Portfolios; and Expert Legal Witness

WE REGULARLY COMPLETE VALUATIONS FOR: Major banks and other lending institutions, developers and investors, property trusts, government bodies, liquidators and administrators, lawyers, accountants and brokers.

Providing valuations in a range of scenarios including: Mortgage security, rental assessment, unit entitlement, sale and purchase advice, rate objections and statutory value, restructuring ownership splits, cash flow modelling.

Get in touch

ROBERT WILSON

Managing Director / Partner Ray White Valuations NSW 0424 135 642 robert_wilson@raywhite.com

ADAM ELLIS

Partner Hotels & Leisure 0411 752 293 adam.ellis@raywhite.com

PETER WILTSHIRE

Partner Residential Development 0414 780 448 peter.wiltshire@raywhite.com

RAYWHITECOMMERCIALNSW.COM/VALUATIONS

JARROD PILTZ

Partner Retail, Industrial & Office 0400 204 640 jarrod.piltz@raywhite.com

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