David Feldman sells prominent West Gate servo

The Cook Street investment is near the recently cleared ex-GMH factory.

Wingate has purchased a convenience retail investment built on the West Gate Bridge toll collection facility, in Port Melbourne.

At 62 Cook Street, the 1.01 hectare site is costing $32.12 million – a price reflecting a 4.8 per cent passing yield.

The state government recently unveiled plans for a high-tech industrial and office hub on the former GMH site.

The vendor, private investor David Feldman, paid $22m – at a seven pc return – in 2016.

The property forms part of a 3.1ha block which the state government sold to MAB Corporation for $13m in 2010.

David Feldman recently sold Bendigo’s All Seasons Resort Hotel for $54.5m – more than twice what he paid in 2017.

Industrial product has been constructed on other parts of it.

In 2018, two portions, undeveloped tracts between 32-38 Cook St, traded to an offshore investor for $6.4m.

Two months ago we reported the state government was tipping in $179.4m to start replacing the nearby former ex-GMH factory as a high-tech industrial and office precinct.

62 Cook Street

Wingate will hold 62 Cook St in its Direct Property fund.

The property contains a Shell service station and Coles Express.

A second building is tenanted to fast food restaurants Hungry Jack’s and Red Rooster.

All up there is 686 sqm of net lettable area.

The Weighted Average Lease Expiry by income is 8.8 years.

“The [trust] has been established to focus on sourcing and acquiring core-plus investment opportunities, where we can increase underlying value through active management of the property and deliver superior returns to our c0-investors,” Wingate executive director and Direct Property Fund manager, Daniel Farley, said.

“Port Melbourne is the first of two investments we are completing this month – we are seeing strong demand for these type of quality assets in an environment where many are searching for yield,” he added.

“This acquisition allows reliable robust distributions, commencing at seven pc, against quality covenants,” according to the businessman (story continues below).

“Further, the gentrifying of the Fishermans Bend precinct, where the property is located, is expected to benefit from a huge amount of infrastructure investment and population growth over coming years”.

Dawkins Occhiuto’s Chris Jones was the agent.

“This is a property that appealed on a number of fronts including the brilliant location on the West Gate Fwy and central positioning within the 480ha Fishermans Bend Urban Renewal project which will significantly enhance potential trade catchment,” the broker said.

“It also offered a secure, blue-chip lease profile and excellent capital growth prospects that may well parallel development of Fishermans Bend and the anticipated population growth of 80,000 by 2050,’’ he added.

Last month, Mr Feldman sold shopping centre Torquay Village, for $40m and Bendigo’s All Seasons Resort Hotel ($54.5).

Wingate reweights

The second property Wingate is purchasing this month is at Moorabbin.

At 1001 Nepean Highway, the five-level office is understood to be costing $39.4m following a related-party deal.

The investor, with Align Property Partners, paid businessman Larry Kestelman $16.65 for this asset last March – then undertook a refurbishment.

Two months ago, Wingate, with the Scalzo family’s Perri Projects, announced plans for a warehouse, showroom and office complex on the site of a former flour mill at 1 Lennon St, West Melbourne which it purchased from Manildra Group owner, the Honan family, for $4.99m in July, 2019.

“The market has been incredibly active and Wingate has been well positioned to capitalise on these investment opportunities,” Wingate Property managing director Mark Harrison said.

“While we have had some recent activity in Melbourne…the Wingate pipeline is as strong as it has ever been in a national sense with further investments slated in New South Wales, Queensland and Western Australia.

In May, the fund manager and non-bank lender, with Azzura Investments, sold a Byron Bay shopping centre and hotel development site for $120m to United Cinema owner, the Mustaca family, and Pelligra Group.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.