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Ipswich sees office property revival as take up hits record high

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Ipswich sees office property revival as take up hits record high

Ipswich sees office property revival as take up hits record high

The Ipswich office market had a record year in 2015 according to Savills, with take-up hitting 160,000 sq ft (14,864 sq m), a 44% increase on the five year average of 90,000 sq ft (7,432 sq m).

The firm notes that last year saw significant activity in the town’s office market, with Suffolk County Council acquiring the 25,000 sq ft (2,322 sq m) Beacon House and Birketts Solicitors securing planning permission for a new 40,000 sq ft (3,716 sq m) headquarters on Princes Street.

Chris Moody, director of business space at Savills in Ipswich, comments: “Princes Street continues to grow in popularity and is fast becoming one of the prime business locations in Ipswich. Now known as the Princes Street Business Corridor and recently awarded Enterprise Zone status, there are a number of major projects that are currently underway in this area which will benefit from tax breaks and financial incentives, making it highly desirable to potential new occupiers.”

Take up is set to grow further  due to the proposed delivery of a number of new schemes, which includes Connexsions 159, the first speculatively built office block in over two decades and planning consent for a new landmark building at 88-96 Princes Street. The scheme, which is being marketed by Savills on behalf of Ipswich Borough Council, will total 40,000 sq ft (3,716 sq m) and offer businesses premium Grade A office accommodation.

The impending delivery of prime new stock has set record rents for Ipswich, with the Birketts scheme pre-let at £18 per sq ft (£193 per sq m) and Connexions 159 being marketed at  similiar terms. This is a noteable uplift on the average rent of good quality second hand stock in the town, which is currently £12.50p per sq ft (£134 per sq m).

Chris adds: “There has been a tangible uptake of business space across the office, industrial and mixed-use sectors, which shows a real level of commitment being made by occupiers in the town. This kind of activity is something that hasn’t been seen in Ipswich for a number of years and can be accredited to the growing importance of the Town as a major regional centre.”

 

Originally Published On: http://www.savills.com/

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Commercial Property

$100m of Queensland Regional Shopping Centres Change Hands

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$100m of Queensland Regional Shopping Centres Change Hands
The recent sale of an Ipswich neighbourhood shopping centre has tipped total transactions in Queensland regional shopping centres over the $100 million mark as 2018 rolls into March.

Sydney-based Mintus purchased the St Ives Shopping Centre for $30.45 million as part of an overall investment package which also included six adjacent properties.

The additional sites included an 11 shop strip retail centre, two freestanding commercial buildings, two vacant mixed use development sites and a vacant house, each on separate titles.

St Ives Shopping Centre is anchored by a Woolworth Supermarket and occupies 38,200 square metres with parking for over 500 cars.

Savills Australia’s Peter Tyson said that the St Ives Shopping Centre and the adjoining holdings were amalgamated over many years.

“Buyers were attracted to the value-add potential of the large-scale land holding which featured significant embedded real estate value and a flexible “Major Centres” zoning which allows for mixed-use development up to 12-storeys.”

Despite it still being early days in 2018 for the market, Queensland has seen a number of high-level investments in regional shopping centres, illustrating a demand in the sector for assets and land.

In February, Marketplace Deagon Shopping Centre was sold to a Chinese investor for $23.3 million on a net yield of 6.95 per cent and in the same month, AM Australia Retail Property Fund acquired the Springfield Fair neighbourhood shopping centrefrom Charter Hall Retail REIT for $23.5 million on a yield of 7.05 per cent.

North of Queensland’s Sunshine Coast, $12.85 changes hands when Brisbane-based Altor Capital purchased the Cooloola Cove Shopping Centre from a Sydney investor.

In January, retail asset Ipswich Homebase was listed as part of an inter-state retail portfolio in 2017 and sold this year as part of said portfolio for a collective $89.05 million.

Originally Published: theurbandeveloper.com

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Commercial Property

Ipswich neighbourhood mall sells on 9.5 per cent yield

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Ipswich neighbourhood mall sells on 9.5 per cent yield
The Goodna shopping centre at Ipswich was bought by Sydney-based Mintus. Supplied

Sydney-based developer Mintus has paid $30.45 million to buy the Woolworths-anchored St Ives Shopping Centre, plus six adjacent properties in Goodna, Ipswich in south-east Queensland.

Built in the 1970s and renovated many times, the 38,200-square-metre neighbourhood mall on a 6.25-hectare site sold on a fully leased yield of 9.5 per cent.

It was put up for sale by Kin Ming Eddy Tse and Shui On Tse, from Brisbane and Hong Kong. They paid $11.2 million for the asset in 1994.

The sale of the Ipswich mall is further evidence of the appetite among private investors for neighbourhood or convenience centres, anchored by a major supermarket, which are considered better positioned to counter the growth of online retailing.

The Woolworths supermarket, whose lease at St Ives runs until 2023, sits alongside 49 specialty tenants, including Domino’s, Red Rooster and Subway with parking for 500 cars.

It’s the second Queensland mall acquisition by Mintus in less than a year after it paid $40 million in March 2017 to buy the Woolworths-anchored Market Square Deception Bay north of Brisbane.

The company was founded in 2014 by Melham Hazzouri and has been rapidly acquiring a portfolio of malls and residential development projects.

Mr Hazzouri said the St Ives Shopping Centre and its land holding was the perfect fit for the Mintus portfolio.

“The centre allows for plenty of value add and redevelopment for the future. We look forward to significantly adding value in the short term, working with the retailers and the community to bring St Ives back to its full potential,” Mr Hazzouri said.

The sale of St Ives Shopping Centre was transacted by Peter Tyson and Jon Tyson of Savills, in conjunction with Shane Sax of Pace Property.

“The centre attracted strong interest from the market. The sale was well contested resulting in multiple bids, primarily from private investors,” Jon Tyson said.

In 2016, Mintus purchased the Village Central Wyong, a neighbourhood shopping centre on the NSW Central Coast from MAB Corp for just under $18 million while in late 2015, Mintus partnered with Revelop to buy the last remaining parcel of land at Nelsons Ridge in Sydney’s west from Boral for almost $60 million.

Originally Published: www.afr.com

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Commercial Property

Queensland Regional Shopping Centre Sells for $23.5m

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Queensland Regional Shopping Centre Sells for $23.5m
Queensland’s neighbourhood retail sector has seen another major transaction with a regional centre changing hands for $23.5 million.

AM Australia Retail Property Fund acquired the Springfield Fair neighbourhood shopping centre from Charter Hall Retail REIT on a yield of 7.05 per cent.

Charter Hall Retail REIT is divesting smaller retail assets as it shifts its focus to larger, higher growth properties. The REIT offloaded three shopping centres for $91 million in November.

Situated on a 2.2-hectare site 16km east of the Ipswich CBD and 22km southwest of the Brisbane CBD, Springfield Fair was the first full line supermarket centre developed in the Springfield area.

The sale was negotiated by JLL on behalf of Charter Hall.

JLL national director of retail investments Jacob Swan said Springfield Fair benefited from “outstanding population growth” within the Ipswich local government area, the second highest in Queensland.

“The centre has a very strong history of occupancy and representation from a wide range of national tenants,” he said.

In the final quarter of 2017, $1.325 billion in major retail transactions were recorded in south east Queensland, including Benowa Village which was sold to a private investor for $49.5 million – the sharpest initial yield ever recorded at the time for a neighbourhood shopping centre in Queensland.

Completed in 1997 with a major refurbishment in 2006, Springfield Fair is a Coles-anchored, fully-leased centre with 6,318 square metres of lettable area.

Originally Published: theurbandeveloper.com

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