Deals of the Week: 17 May 2019

Deals of the Week: 17 May 2019

MELBOURNE: Singaporean hospitality company Next Story Group has paid about $45 million for a newly built hotel in Melbourne’s Southbank that will be the launching pad for a new hotel brand. The 162-room property at 167 City Road, jointly developed by prominent Melbourne developers Andrew Nehme and Dean Giannarelli, will become Next Story’s first LinQ Hotel, an upper mid-scale hotel, when it opens in September.—AFR.

NATIONAL: Investors spent more than $4.67 billion on city fringe and suburban office space across the country in 2018, says JLL. That tally is well above the 10-year average of $3.84 billion, although it fell short of 2017’s record high of $6.29 billion. Sydney and Melbourne were the nation’s most active markets, with $2.45 billion and $1.211 billion in sales respectively.—AFR.

SYDNEY: US fund manager Starwood Capital is currently undertaking due diligence to buy Sydney’s Zenith Centre for about $440 million. If the sale goes ahead, it will likely be the biggest-ever commercial property deal to have transacted outside of the Sydney CBD.—AFR.

SYDNEY: Diversified property giant Stockland is upping its logistics exposure, swooping on a 13.09-hectare parcel of land at Gregory Hills in south west Sydney, for $47.13 million. The site sits on the border of the Smeaton Grange industrial precinct and Gregory Hills bulky goods retail precinct near the M5 and M7 Motorways.—The Australian.

CANBERRA: Singapore-based SC Capital has swooped on Canberra’s Finlay Crisp Centre for about $62 million. The group will look to reposition the complex to win more tenants. SC Capital has teamed with local asset manager Artifex Property Group, which will undertake a $50 million refurbishment to take advantage of its prime location.—The Australian.

MELBOURNE: Qantas has sold its domestic terminal, also known as Terminal 1, to Melbourne Airport for $355 million. Qantas has also signed a 10-year agreement that includes exclusive access to Terminal 1, including its premium passenger lounges, for domestic services. Melbourne Airport gets the aeronautical and retail assets and will manage the property. The agreement starts on July 1 2019.—Australian Aviation.

MELBOURNE: Amart Furniture has signed a 10-year lease agreement with Goodman Group to build the distribution centre in the Connectwest Industrial Estate on Logistics Drive, Truganina, which will have an end value of $65 million. The new 48,770 square metre custom-designed distribution centre will replace an existing cluster of warehouses in Somerton.—Transport & Logistics News.

MELBOURNE: The prominent Melbourne-based Smorgon family have sold their prime Brisbane retail property at 130 Queen Street in the Brisbane CBD to Brisbane-based investment manager Marquette Properties. Marquette is understood to be in exclusive due diligence to close on the property for more than $77 million on a passing yield 5.58 per cent.—AFR.

MELBOURNE: Singaporean hospitality company Next Story Group has paid about $45 million for a newly built hotel in Melbourne’s Southbank that will be the launching pad for a new hotel brand. The 162-room property at 167 City Road will become Next Story’s first LinQ Hotel, an upper mid-scale hotel, when it opens in September.—AFR.

HOBART: The University of Tasmania has bought the well-known K&D hardware store site in Hobart for $30 million to increase its stock of student accommodation. K&D will continue to trade on the site—which covers an entire central CBD block—for the next two years.—Mercury.