The Fairfax family has sold a south Sydney pub held 27 years.

Thomas Hotels has paid $42 million for The Regent Hotel at Kingsford (pictured, top).

On 2864 square metres at 416-422 Anzac Parade, on the corner of Middle Street, it has been operated by Solotel.

Licensed to trade 24 hours with a gaming room with 30 electronic gambling machines, weekly income is c$145,000.

Colliers’ Guillaume Volz and Eugene White with JLL’s John Musca and Ben McDonald were the agents.

The pub and a small neighbouring block were listed for sale in February with c$100m price hopes.

Zoned E2 Commercial Centre, with a 60 metre height limit and 5:1 floor space ratio, a 17,500 sqm product could have been delivered.

A scheme marketed for the amalgamation was for a 400-plus bed hospital (continues below).

That parcel, facing Anzac Pde, is still for sale.

Another Sydney hotel sale

The Regent Hotel deal comes four days since we reported Australian Venue Co, it is speculated in partnership with Charter Hall, acquired the freehold going concern to Petersham’s White Cockatoo Hotel, for $17m.

Ray Reilly was that seller, after a decade and a renovation.

JLL was again the agency; Kate Macdonald, brokering an off-market deal after a failed campaign with another agency last year.

Also this month, Justin Hemmes is speculated to have outlaid more than $15m for an ex-RSL turned Tattersalls Club neighbouring properties he owns including Hotel CBD, in York St.

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Australian Venue Co has bought the freehold going concern to the White Cockatoo Hotel at Petersham from Ray Reilly who has operated it since 2017.

The three level building on 700 square metres at 30 Terminus Street, on the north west corner of Railway Street, cost $17 million.

The freehold set the publican’s Reilly Group back $6.5m.

Another $3m was recently spent on improving the operation and renovating the building, opposite Petersham station.

AVC is co-investing for the leasehold with an institution, speculated to be Charter Hall, which will hold the freehold.

White Cockatoo Hotel

With a bar, bistro, beer garden, eight electronic gambling machine licences (which will be sold by Reilly Group separately) and 19 guest suites, weekly revenue at the White Cockatoo Hotel exceeds $125,000 (continues below).

An operator’s potential annual income would be over $400,000, marketing material said.

“Ray, Rene and their team have built an extraordinary business,” JLL’s Kate Macdonald, said.

“The White Cockatoo exemplifies the type of community-focused, food and beverage-led venue that is becoming increasingly popular in the modern pub market,” according to the executive.

“This acquisition represents a significant opco-propco partnership structure, with the business and freehold interest acquired simultaneously by separate parties working in collaboration,” she added.

Petersham is about six kilometres south west of Sydney’s CBD.

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Castlerock has quietly snapped up a modern Perth office anchored to two state government departments.

The seven level building, Workzone East, at 1 Nash Street, set it back $79.4 million.

Corval Partners Limited was the seller.

It paid c$68m in 2017.

Charter Hall was that vendor.

It also developed the office in 2013.

For open-ended government focused fund

With 12,360 square metres of A-grade area and 81 car parks, 1 Nash St is fully tenanted to two state departments: Primary Industry and Regional Development and the Mental Health Commission.

The NABERS Energy rating is 6-star. The water score is 4.5-star.

“The asset will, upon settlement, form part of the Castlerock Government Property Fund, which now holds 15 regional, suburban and CBD assets spread across six states and territories,” the buyer said in a statement.

Launched in 2014 it now manages real estate worth nearly $700m.

Ninety nine per cent of the portfolio is leased (continues below).

Ninety six pc of revenue comes from the state or commonwealth government.

The weighted average lease expiry is 5.5 years.

“The proposed acquisition dovetails with the fund’s strategy of developing and buying government leased assets that are well positioned for long term performance,” Castlerock chief executive officer, Adam Bronts, said.

“When we acquire or develop assets leased to state and commonwealth governments, we see them as long-term partnerships with the occupying agencies or departments,” he added.

“We work closely with them to identify and provide their long-term real estate needs, which, in turn, produces long-term, stable returns for our investors,” according to the executive.

“It’s a formula that allows Castlerock to meet its key objectives – delivering strong returns to investors, ensuring positive experiences for tenants, and forging meaningful relationships in the communities where we operate”.

Oliver Picone added the sale reflects the successful execution of Corval Limited’s active asset management strategy.

“Since acquiring Workzone East, our focus has been on improving the quality, resilience and long-term value of the asset,” he said.

Cushman & Wakefield’s Nick Charlton brokered the off-market deal.

“The result reflects growing investor demand for quality Perth office assets supported by secure income and improving market fundamentals,” according to the executive.

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Laurence Lancini has sold a Capricorn Coast shopping his company developed 10 years ago.

The 2.8 hectare Yeppoon Central is speculated to be trading to Charter Hall, which has been bolstering its retail portfolio the past 18 months.

Price is unknown but based on the fully let annual net income ($4.16 million), would circle $70m assuming a six per cent yield.

At a sharper 5.5pc return, value would approach $76m.

Yeppoon is about 45 kilometres north east of Rockhampton.

Turnover rent, base rise set

Developed by Lancini Property Group at 42-44 Park Street, Yeppoon Central contains 631 car parks.

There is 14,432 square metres of lettable area anchored to Woolworths – it is one of the retailer’s top three Queensland stores – Big W and The Reject Shop, with 28 specialty stores, four kiosks and an ATM.

A McDonald’s with a drive-thru occupies a pad site (continues below).

“Woolworths…is currently paying percentage rent, achieving sales around 52pc higher than the Urbis benchmarks,” the agents, CBRE’s Joe Tynan and Michael Hedger with JLL’s Jacob Swan and Ned McKendry, said when the asset was listed February.

The supermarket is also set for a significant base rent increase in March, 2028, they added.

Charter Hall backs Queensland retail

Any deal would come six months since we reported Charter Hall bought two regional Queensland shopping centres from Vicinity – Gympie Central and Whitsunday Plaza.

In September the fund manager bought six Bunnings outlets with a leaseback from Wesfarmers including in the state, at Airlie Beach.

Another is at Oxenford, north west of Surfers Paradise, on the Gold Coast.

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Melbourne asset manager Plantation Capital has banked an impressive capital gain flipping one of two car yard investments bought six months ago with leasebacks.

The 8699 square metre holding with a 2130 sqm showroom for three brands – Kia, Mitsubishi and Subaru – at 247-249 Morayfield Road, Morayfield, collected $18.5 million following an off-market campaign.

It paid $13.4m.

That seller, Inchcape, occupied since 2006.

The pair also traded a Rothwell car dealership – 731-737 Deception Bay Rd – for $13.2m.

Also this week we reported Charter Hall bought a sprawling large format automotive retail investment in Sydney, outlaying $55.85m.

Profitable flip

The result for 247-249 Morayfield Rd reflects a 4.7 per cent net passing return (continues below).

Plantation, led by Steve McKnight, acquired it at a 6.53pc yield.

“This sale underscores the continued demand and depth for blue-chip assets as investors are actively pursuing both income security and potential for future growth,” Colliers’ Hunter Higgins, who brokered the on-sale, said.

“While I recognise that the previous owners had envisioned a longer-term value-add strategy, the buyer acted swiftly to acquire the asset off-market, ultimately presenting an offer that was simply too compelling to refuse,” he added.

“I am pleased to know that both parties are very happy with the result,” according to the executive.

Morayfield is about 47 kilometres north of Brisbane’s CBD

Rothwell is about 34 km north of town.

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Exceed Capital has entered negotiations to buy a Sydney Olympic Park office leasehold from Charter Hall.

The six level building at 7 Murray Rose Avenue contains 5931 square metres.

Aerospace and defence giant Thales occupies 88.8 per cent on a lease expiring in 2032.

Near a new Sydney Metro station, there are also ground floor retail tenancies and a two level basement with 53 car parks.

The site spans 1162 sqm.

Cushman & Wakefield’s Kenny Duncanson, Jack Harrison and Steven Kearney were the agents.

The deal comes three months since we reported Exceed paid Strada Group, led by Scott Barlow, $44.7m for a Gold Coast office.

Last September meanwhile Exceed acquired a medical centre, again on the Gold Coast, for $26.5m (continues below).

That seller was HMC Capital.

Second time luckier

Charter Hall, for the Charter Hall Direct Sydney Olympic Park Fund, also tried to sell 7 Murray Rose Ave in 2018; price expectations were $50-$55m.

The asset manager seized ownership following its takeover of Folkestone the year earlier.

Developed in 2012 the office carries a 5.5 NABERS Energy rating and 6-star Water score.

More to come.

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Charter Hall has snapped up a large-format automotive retail asset in Sydney’s south.

The Kirrawee properties, 499-511 Princes Highway and 128-130 Bath Road, cost $55.85 million following a campaign launched mid last year.

Across 1.47 hectares, it contains four showrooms, two service workshops and associated facilities.

Leased to Eagers Automotive and trading, amongst other makes, BYD, Chery, Nissan, Volkswagen and Volvo, it returns $3.2m annual net rent.

The weighted average lease expiry is nearly years.

With options the tenant can stay until 2052 (continues below).

Cushman & Wakefield agents Jack Harrison, David Hall, Tim Cassidy, Archie Cropley and Mark Hansen were the agents.

AC McGrath was the vendor.

Kirrawee is about 28 kilometres from town.

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The deal – enough to require a statement to the ASX for becoming a substantial shareholder – is for 52,161,559 securities.

It provides 5.837pc voting power.

It also may influence Abacus’ shareholder register and future corporate activity (continues below).

Securities in Abacus, which recently restructured its self-storage platform, last traded at about $1 implying Charter Hall’s holding is worth c$50m though no other details regarding the terms were disclosed.

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With the five year deals – to Siemens Energy for 1269 square metres on the second storey and Stack Infrastructure, for 1039 sqm on level six – the 10 floor building at 510 Church Street is 93.2 per cent occupied.

Stack will fill part of a space to be surrendered by advertising giant Dentsu (this occupier will also pay Stack a surrender payment next financial year).

Its lease starts in July.

The agreement includes fixed four per cent annual rent rises.

Siemens’ rent will rise 3.75pc per annum (continues below).

360 bought its 50pc interest for $135m in 2022 from a former Irongate portfolio taken over by Charter Hall and Dutch pension fund PGGM

The stake has been held in the 360 Capital REIT.

Colliers’ Travis Myerscough and Tom Rothel are the leasing agents.

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Norhart Developments has bought an industrial development site in the Flagstone Priority Development Area at North Maclean.

The 20.25 hectare parcel, 820 Greenbank Road, set it back $15 million.

A staged 28-lot subdivision is planned following consultation with Economic Development Queensland.

Lots will range from 2000-8000 square metres. Construction for the estate will start shortly.

Brisbane based Norhart is also behind the Belvedere Business Park at Park Ridge – which we reported recently was sold down, Cansdale Business Park at North Lakes and Waterford Business Park at Waterford West.

820 Greenbank Road

The Greenbank Rd site sits within the broader Flagstone growth corridor in Logan, designated a Priority Development Area by the state government, encouraging industrial and residential product (continues below).

Last week we reported Amazon committed to a $750m, 144,000 sqm distribution centre at the nearby Flagstone Logistics Estate, to be held by Charter Hall and Fife Capital.

Colliers’ Nick Evans and David Brisk were the agents.

The vendor paid $12.375m in late 2022.

North Maclean is 34 kilometres south of Brisbane’s CBD.

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