The Kirby’s, one of Australia’s most prominent families and founders of Village Roadshow Pty Ltd, are set to divest two thirds of their highly acclaimed Peninsula Cinemas property portfolio in the coming months, a real estate move that will see two of Peninsula’s most attractive retail investments come to market.
CBRE, together with local agency Prentice Real Estate, has been appointed to sell the assets via an international expression of interest campaign, with Charter Keck Cramer as transaction adviser.
The properties, located in Sorrento and Rosebud, are both securely leased to Peninsula Cinemas Pty Ltd (a subsidiary of Village Roadshow) on long term lease arrangements, ensuring that the cinemas will remain a community attraction for years to come.
Rorey James, CBRE Strip Retail Investments, commented; “Rarely as sales agents are we able to offer assets in high quality locations with secure, long leases in place to tenants of a similar ilk to Peninsula Cinemas. We are confident that these attributes among many others will be in high demand from a number of different local, interstate and offshore buyer markets.”
Both properties are positioned on commanding landholdings (2,800sqm Rosebud & 1,120sqm Sorrento), with multiple access points, prominent frontage and surrounded by public amenity. They will be offered with initial 10-year lease terms and fixed annual rental increases.
Sorrento, which has been in the Kirby family for almost 70 years, has a rich history and stands as one of the Peninsulas most prominent buildings, which shaped the landscape of the towns tourist atmosphere.
Originally constructed in 1894 by Isacc Bensilum the Sorrento Cinema, or The ‘Sorrento Athenaeum Hall’, was the home of travelling shows with noted artists preforming while on holidays in the summer. Over the years the cinema has been transformed into the family friendly entertainment venue you see today, incorporating a candy bar and neighboring restaurant while maintaining the original Athenaeum hall stage & ornate ceiling.
Rosebud is the larger of the two venues, with a seating capacity of 792 across the five-screen cinema complex. The cinema is positioned in a highly convenient central location, surrounded by council car parking and only moments from the Rosebud foreshore. Also adjoining the Rosebud cinemas is a shopping centre complex which has been recently landmarked as a potential site for the new $30 million Rosebud aquatic centre development.
CBRE sales agent, Justin Dowers notes; “What we have here is two unique opportunities for investors looking to purchase land rich retail investments with a strong underlying tenure. Factors such as high barriers of entry for competing tenants and the longstanding operation of each venue are complimentary to the tenant’s future success, not to mention the significant catchment area in which they service.”
The Peninsula Cinema Portfolio is being offered for sale by way of an international expressions of interest campaign, to be sold in one line or together. Both campaigns are due to close on Wednesday 12th October 2017 at 5:00pm.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.