Commercial Industrial Property Report

Somersby Industrial Park explodes with $45 million in sales in 2008; Zenith Tuggerah fully leased in six months; Moneywise signs for Riverside Park West Gosford; plus the latest property sales and leasings across the Central Coast.

Somersby Industrial Park explodes with $45 million in sales in 2008.

Somersby Industrial Park has come of age, with sales in 2008 exceeding $45m. Offering a competitive alternative to Sydney’s overpriced industrial land, Somersby Industrial Park is strategically located close to the regional centre of Gosford, is 25 minutes north of Sydney and closer than Eastern Creek or Campbelltown is to Sydney. For Sydney investors, Somersby provides toll-free Freeway access to Sydney Metro areas plus a lifestyle sea change opportunity for skilled labour.

With land economically priced from $180 per square metre, many companies are already reaping the benefits of the F3 based location - CSR Hebel, BAC, Thiess Environmental Services, Borg Industries, EnergyAustralia, Wella and Sulo are just a few.

Major industrial developer, Hunter Land, has made a number of major strategic investments here including its $14m purchase of Somersby Central Industrial Park, a 12 hectare parcel of industrial land already subdivided into 27 ready to build lots. “We have great faith in the future of the Central Coast,” said Hunter Land CEO Graham Burns. “Somersby Central is a key acquisition to grow our NSW regional footprint of industrial land. Ready to build now, the hard work has been done. We offer competitive prices as well as design and construct packages - a total solution!”

“The NSW Government and Gosford Council through the 2007 adoption of the Somersby Environmental Management Plan have proactively resolved environmental issues, previously an impediment to development," he said.

Hunter Land recently completed the $17m Thiess Materials Recovery Facility in Pile Road. EnergyAustralia also purchased 2 hectares for $2.4m from Hunter Land for outside storage. It is understood an unnamed purchaser has acquired the ING-owned former Coles warehouse in Kangoo Road for $12.9m. Existing buildings available with vacant possession have been selling quickly. The 7,600m2 Staff Lighting building in Wella Place was purchased by a growing local company for $5m. Current enquiry is strong for 3,500 m2 to 10,000 m2 buildings.

Zenith Tuggerah fully leased in six months

The Zenith Building at Tuggerah Business Park is now fully leased just six months after completion. With a Gross Lettable Area of 3,500 sqm and rents achieved above the expected market rate, Zenith has proved to be a highly successful venture for Kevin Gregory.

“This proves that people will pay a premium for quality,” said Mr Gregory. “When Phil Brand developed Platinum at Erina there were the sceptics but he proved them wrong and it has achieved premium rents for a quality building. I wanted to do the same thing for Wyong and we have achieved that much more quickly than I expected and at higher rentals than some people said I would get,” he said. “We also tried to fill a void in the marketplace by creating a more business friendly atmosphere with our Zenith Bar & Café and Zenith Business Centre & Function Rooms.”

The Zenith Room is fully equipped with wireless microphones, projectors and screens and can accommodate up to 80 people while the Boardroom accommodates 10 people. “Zenith has quickly shown that it is an ideal place to do business,” said Mr Gregory.

Zenith has already attracted two national companies, ING Direct and GHD. ING Direct have leased 1,189 sqm on the top floor and will employ 130 people. International professional services company, GHD, has taken 304 sqm to set up a Central Coast office and will employ about thirty staff. Telstra has established a new Telephone Exchange in the building which will give all of Tuggerah Business Park high speed broadband for the first time.

Other businesses that have moved into Zenith include Hotondo Homes, Central Coast Group Training, ESP.IT, Central Coast Business Enterprise Centre, Landin Commercial, Jendar Interior Design, Newcastle Permanent Building Society, Aztec Hair Design, Arlene Beauty in the Park and Zenith Bar & Café.

Moneywise signs for Riverside Park West Gosford
Moneywise Group Australia will locate their Australasian head office operations in the new Riverside Park development at West Gosford, having bought a 1,100sqm strata unit off the plan.
Riverside Park is being developed by a consortium lead by the Gibbens Family and takes in a total area of 90,000 sqm fronting Manns Road, backing onto Racecourse Creek and partly with frontage to Pacific Highway. Tenders for construction are out and contracts are expected to be let before the end of the year allowing for an early 2009 commencement.

Stage 1, representing an investment of around $16.5 million comprises:
- Two-level 2,157 sqm commercial building;
- Four-level 5,665 sqm commercial office building; and
- KFC drive-thru restaurant.

Speaking for the consortium, Matthew Gibbens said that the building design would incorporate a number of environmentally sustainable initiatives that would lead to lower outgoings for occupants. “But above all this will be the most prestigious commercial development on the Coast making it a highly sought after location,” he said.

Sales

Empire Bay Tavern Sold
A NSW country publican family has paid around $5 million for the Empire Bay Tavern.
Set on 1.2 hectares, the property is located on the corner of Empire Bay Drive and Wards Hill Road and comprises 9 Poker machines, extensive outdoor opportunities, TAB lounge, restaurant, commercial kitchen, bottle shop and gaming room in a floor area of approximately 1,000 sqm.

The freehold property which was built in 1989 and run under management or leased since then was offered with vacant possession with an asking price of approximately $6 million.
Selling agent Mike Wheatley of Knight Frank said that the buyers are experienced publicans who will operate the business themselves including the food operation. “They do plan to carry out some improvements on the property,” he said.

Great exposure in Gosford
A 365sqm building on 471sqm land at 250 Mann Street Gosford has been sold for $835,000 (GST not applicable) with a ROI of 8.4%.
The unique former Gosford Post Office brick and tile building is over 50 years old but has great exposure on all four sides. It backs onto the train station, has parking for six cars and offers two-level walk up office space. It is currently leased to two tenants on long leases.
A Sydney investor is the new owner. Brendan Byrne-Bates of Raine & Horne Gosford negotiated the sale.

North Wyong unit sold
A new industrial unit at 6/3 Lucca Road North Wyong has been sold for $162,000 excluding GST. Zoned 4(b), the 140sqm unit is centrally located and includes a partitioned mezzanine office. Mark Davies of LJH Commercial negotiated the sale.

Best location in Erina
A premium 145sqm commercial suite at Suite 2, 257-259 Central Coast Highway Erina has been sold for $680,000 excluding GST to an owner occupier. The new suite is zoned 3(b) and is described by agent Brad Rogers of LJH Commercial as, “Arguably the best location for commercial exposure in the Erina CBD.”

Berkeley Vale Industrial Park sales
SICO South Pacific are due to relocate into new purpose built premises at the end of the year in Berkeley Vale Industrial Park. The new factory/warehouse and offices are currently being constructed on Lot 3 under a design and construct package with Hunter builders, GWH Group, for $3,240,000 plus GST. The land size is approximately 7865sqm with approximately 2400sqm warehouse and 250sqm of offices.

Leasing

North Wyong unit with mezzanine
Unit 6/11 Donaldson Road North Wyong has been leased to Crimsafe Security for $16,000 per annum excluding GST on a two year lease. Zoned 4(b) the new suite is approximately 120sqm with a ground floor showroom and reception area and a 70sqm mezzanine office area. Mark Davies of LJH Commercial negotiated the lease.

Premium Erina suite leased
Suite 6, 257-259 Central Coast Highway Erina has been leased for $13,706 per annum excluding GST for three years with a two year option to Aust Cover Insurance. The premium suite is within a one year old building. Brad Rogers of LJH Commercial negotiated the lease.

Huge space, long lease in Gosford
1400sqm of office space in the Gateway Centre Gosford has been leased for $340,000 per annum excluding GST and including outgoings for ten years with a five year option. A local company has leased the commercial space formerly used by Woolworths for office space. Robert Wilcox of Chapman & Frazer negotiated the lease.

Gosford retail shop leased
A 200sqm shop at 156 Mann Street Gosford has been leased for $30,000 per annum excluding GST and outgoings for three years with a three year option. The Samaritan Foundation is the new tenant. Robert Wilcox of Chapman & Frazer negotiated the lease.

3000sqm of vacant land zoned 4(b) at Lot 6B Blade Road Berkeley Vale Industrial Park has been sold for $505,500 excluding GST. Local company, Christensen Engineering has purchased the land to construct purpose built premises.
Ty Blanch of LJH Commercial negotiated both sales.

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