Developers are lining up to buy South Sydney's prominent The Mill complex, which has been listed for sale by PPB Advisory with a price range understood to be around $100 million.
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Goodman Group, Mirvac, CorVal and the soon-to-be-listed PropertyLink, are tipped to compete for the 1.9-hectare corner position on Bourke Road and Huntley Street, a mix of 10 modern and refurbished warehouse buildings, including the bar and restaurant complex The Grounds of Alexandria.
CBRE's Scott Gray-Spencer and Brendan Shipp have been appointed to market the high-profile Alexandria site on behalf of PPB Advisory. The agents said there was also an opportunity to redevelop about 10,000 square metres more of the site. It was developed in 2008 by an investment company, Trivest.
"The Alexandria leasing market has benefited from strong growth in both rents and tenant demand which, coupled with the social and food offering of The Grounds, makes this an exciting offering," Mr Gray-Spencer said.
"The under-utilised floor space is another key element for investors who are looking for add-value opportunities."
Mr Gray-Spencer said there was also significant rent reversion opportunity, with a number of leases providing for a market review during the initial lease term."
CBRE's Mr Shipp said The Mill's prominent South Sydney location would be another drawcard for purchasers, with the location allowing retailers to capitalise on residential development in the surrounding area and the office space benefiting from the withdrawal of competing office stock for residential conversion.
"Converted warehouse-style buildings are a rare commodity within the South Sydney precinct and are becoming an increasingly popular choice with tenants. The historic buildings at The Mill retain key character elements such as polished timber and concrete flooring and the original brick walls, which are highly sought after and tailor made for creative tenants," Mr Shipp said.
In the current low interest rate climate, buyer appetite is high as evidenced by the sale of Sydney's Maroubra RSL Memorial Bowling Club to Catholic Healthcare for $28.5 million.
JLL's head of metropolitan sales and investments NSW, Sam Brewer and director, Leslie Cheng, sold the property on behalf of the vendor, the Maroubra RSL Sub-Branch.
"This site generated a significant response from the market with over 250 inquiries and 40 offers made, which is a record in the level of demand we've seen for any property," Mr Brewer said.
Catholic Healthcare's general manager Property Michael Lockwood said Catholic Healthcare was going to create a community-focused integrated aged, retirement and community care precinct "with numerous opportunities to provide care for the growing ageing population of Sydney's eastern suburbs".
Another sale was a large-format retail building in western Sydney for $14.35 million from Hydrox Nominees, with a passing initial yield of 6.47 per cent. The anchor tenant at the 80 - 82 Mulgoa Road, Penrith, site is Freedom Furniture which has a 10-year lease term.
The sale was negotiated by James Wilson, Harry Bui and Paul McGlynn from Colliers International.
