Developer Strintzos Property Group has disposed of a service station development in the Melbourne suburb of Tarneit for $19.91 million, reflecting a fully leased yield of 4.8%.
The project, located on a site of more than 10,000 sqm at 735 Derrimut Road, attracted convenience and food-related tenants including 7-Eleven and KFC.
The property was under construction during its expression of interest campaign and was sold to a local Victorian investor.
The transaction was handled by Rorey James, Kevin Tong and Justin Dowers of Stonebridge Property Group.
“The eventual sale price and yield are reflective of the market’s appetite and pent-up demand for the sector,” Stonebridge director Rorey James said.
“Local, interstate and international buyers continue to be starved of opportunities, with this campaign yielding seven other unconditional offers who have missed out yet again.
“However, what was particularly strong about this transaction, was the inclusion of the seven specialty shops, three of which were vacant, and the lack of impact this had on the yield.”
In recent development news, developer Gurner teamed up with MaxCap Group this week to purchase a development site on the Gold Coast with ambitions to build a $120 million apartment tower.
Golden Age Group was approved to develop a new 21-storey tower in the Queen Victoria Market precinct in Melbourne’s CBD last month, as Vicinity Centres announced plans to redevelop the Buranda Village shopping centre in Brisbane into a mixed-use precinct with offices and more than 600 homes.
Japanese developer Mitsui Fudosan entered the Australian market last week after partnering with Frasers Property to develop an 269-apartment project in Sydney, while Mirvac bought an 80ha parcel of zoned land in Cobbitty, NSW to develop into a masterplanned neighbourhood.
Primewest bought a Woolworths-anchored retail centre under construction in Sydney from Fridcorp for $41.5 million, while Singapore-listed Keppel REIT purchased a grade-A office development in North Sydney for $327.7 million.