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Ray White Commercial Seals $380M Deal

Ray White Commercial Seals $380 Million Deal

Ray White Commercial has finalised one of the largest metropolitan transactions of 2017 with the $380 million sale of the Bakehouse Quarter in Sydney’s inner west.

Associate director Ben Kirby of Ray White Commercial NSW, pictured above, negotiated the off-market transaction on behalf of the ASX-listed vendor BlackWall Ltd.

The purchaser was Yuhu Group Australia, a Chinese group with a strong local presence in Sydney.

The property had previously received offers of $270M to $300M when it was marketed several years ago however the final sale price was $380M.

Mr Kirby, who had been working on the deal for six months, said the Bakehouse Quarter was a very strong performing mixed use asset with a range of blue chip tenants including Fitness First, IGA, Arnotts Corporate, AMF Bowling, WOTSO and Gloria Jeans.

“It is well located in the heart of Sydney on a 6 HA site. The property will benefit from the WestConnex program which is currently under construction, and the State Government’s Parramatta Road Strategy ” Mr Kirby said.

“The purchasers have secured an outstanding mixed use investment which will provide masterplanning opportunities in the future.”

Ray White Group director Dan White congratulated Mr Kirby on such an outstanding result for his vendors.

“The Sydney commercial market has continued to show robust results in 2017 with strong interest in value-add opportunities from both domestic and overseas buyers,” Mr White said.

“Well located assets with potential to further develop, particularly within 20km of the Sydney CBD with access to both transport and employment nodes are rare to find,” he said.

“Historically these assets are tightly held and in this transaction Ben matched the vendor and purchaser to achieve an outstanding result.”

Jeff Moxham, managing director and partner Ray White Commercial NSW, congratulated Ben Kirby on a fantastic example of off market agency, recognising the development upside and how it fit with Yuhu’s strategy.

“Ben’s strong relationships with both Blackwell Ltd and YuHu Group was a important element in seeing the deal come together. Ben proved to be an integral element of bringing the deal together.”

The Bakehouse Quarter, set around the refurbished former Arnott’s Biscuits factory in North Strathfield, has been built up into a major commercial and retail development.

The property was sold by the unlisted Kirela Development Unit Trust and is managed by the ASX-listed group BlackWall Ltd.

In a statement, Yuhu Group (Australia) said the iconic Bakehouse Quarter at North Strathfield would form a significant part of the company’s medium to longer term investment strategy.

Yuhu Group CEO Eric Roozendaal said the Bakehouse Quarter acquisition fit neatly into their longer-term investment strategy “which centres on acquiring high quality assets with existing cash-flow income streams through strong retail and commercial tenancy combined with future development upside.”

“We see this as an outstanding long-term investment proposition because through further master-planning there is scope to develop the type of contemporary hub or town centre that reflects our corporate values of seamlessly building better communities,” Mr Roozendaal said.

He said Yuhu Group has already made more than half-a-billion-dollars in new investment commitments around Sydney this year and the completion of the Bakehouse Quarter transaction would see the value of our property portfolio exceed $700 million.

One of BlackWall’s subsidiaries, WOTSO WorkSpace, is a tenant at the Bakehouse Quarter, and will keep expanding there to build up to 5000sq m of additional space.

“The net effect of the Bakehouse Quarter transaction, whether the option is exercised or not, is expected to be positive for both (the company and the trust),” BlackWall said in a statement to the ASX.

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