The 20 strata owners of Leederville’s Leeder Business Park have banded together to sell a 4,234sqm land parcel for $14 million to ASX-listed United Overseas Australia Ltd.
The property at 661 Newcastle Street is located within the Leederville Masterplan precinct – a local council led project aimed at reinvigorating the Leederville city centre over the next eight years.
The site, which is earmarked for Regional Centre zoning, offers 68 metres’ frontage to Newcastle Street and a 70 metre depth that extends through to the main Oxford Street car park. The property is suited to support a major high-rise mixed use redevelopment, incorporating retail and entertainment, with residential accommodation on the upper levels.
CBRE’s Ben Younger, Michael Milne and Kate Foley negotiated the sale process on behalf of the property’s 20 individual strata owners via an Offers to Purchase campaign that attracted interest from more than 80 groups.
Malaysian property developer, ASX-listed United Overseas Australia Ltd (UOA), was the successful purchaser, having collaborated with Psaros Group on the acquisition.
UOA Non-Executive Director Alan Winduss commented on the purchase: “The UOA Group is excited that our first significant land acquisition in Australia is the iconic Leeder Business Park. We look forward to working with the City of Vincent, the Leederville Community and other relevant stakeholders to deliver a development that compliments the vibrancy and uniqueness of this remarkable suburb.”
CBRE’s Ben Younger said the sale represented a landmark opportunity to secure a foothold in the thriving, vibrant and growing Leederville precinct.
“661 Newcastle Street presented a very unique opportunity, which many people thought would never happen. To pull together 20 individual owners of 27 strata units, to unlock the site for redevelopment was an enormous task,” Mr Younger said.
“The opportunity to secure such a prominent parcel in an already thriving area – and one that will continue to grow significantly over the coming years – attracted strong buyer interest from a range of local, national and international developer groups.”
Mr Younger said the sale was a challenging result that ultimately culminated in a strong result for all stakeholders.
“The sale involved an incredible number of moving parts and was an extremely challenging process that presented many hurdles along the way. This transaction was a very rewarding outcome for our vendors and the purchaser.”
Mr Milne said the sale highlighted the strong investment appetite that existed to secure development sites in key strategic inner-city locations.
“A number of interested groups moved fast on this property given its sought after position and favourable planning. The depth of offers received at the close of the campaign forced a second round bid process that achieved a strong result with prompt settlement,” Mr Milne said.
“The property is substantially leased, providing buyer groups with a meaningful holding income stream whilst major redevelopment concepts are being progressed.
“The successful purchaser intends to capitalise on its full development potential, working with Psaros Group to progress concept plans for a mixed use project including retail, commercial offices and residential components.”
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About CBRE Group, Inc.
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.
About CBRE Group, Inc.
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.
