Commercial Industrial Property Report

Local council infrastructure contributions under the microscope
Planning Minister, Kristina Keneally has announced the first results of a review into local council infrastructure contributions plans.

The review began following the December 2008 announcement that the NSW Government would reduce State levies by up to $27,000 and introduce a $20,000 per lot threshold for council levies. In line with the announcement in December, councils can only charge above the $20,000 levy threshold with the approval of the Minister for Planning.

The Government appointed a contributions review panel, including independent experts, to review plans of councils applying to exceed the threshold and provide recommendations to the Minister. Applications to exceed the levy threshold were received from 28 councils across NSW to review 92 separate Section 94 (local contributions) plans above $20,000.

“Reducing our levies and introducing a threshold for council levies are measures designed to boost the home construction industry and lower the cost of development,” Ms Keneally said. “This has been the first time Section 94 local infrastructure contributions plans have been put under the microscope like this.

“The review highlighted inconsistencies and complexities of both local infrastructure funding and planning across NSW. No two councils use the same approach to determine contributions. Following the first round of the review – which included eleven councils – I have decided to apply the $20,000 threshold to one council,” Ms Keneally said. “Four more councils – Camden, Wyong, Liverpool and Penrith Councils – have, via the review process, identified savings of between $2,000 and $18,000 per lot for relevant plans.

Ms Keneally said that the next stages of the levy review process will be announced shortly, and will again seek to balance the needs of local government and the housing construction industry. “Finding a solution that suits everyone isn’t easy, but the process is being assisted by the State Government’s own actions to reduce state infrastructure contributions,” said Ms Keneally.

Leasing

Erina office suite leased
Broadview Accounting has leased Suite 5, 203 The Entrance Road, Erina for 3 years with 3 year option. Rental for the 193sqm office is $45,000 per annum including outgoings plus GST. The property which was built approximately 15 years ago comprises ground floor retail with 1st floor office suites and off-road parking. Craig McMullen of Citicoast Realty negotiated the lease.

West Gosford industrial take away leased
A takeaway shop at 2A, 1 Jusfrute Drive, West Gosford has been leased for 3 years with 3 year option at a rental of $26,000 per annum including outgoings plus GST for 3 years with 3 year option. David Tawyer from Citicoast Realty negotiated the lease.

West Gosford factory unit leased
Exclusive Glass Products has leased Unit 1, 348 Manns Road, West Gosford for 3 years with 3 year option. Rental for the 197 sqm unit is $36,000 per annum including outgoings plus GST. The concrete panel construction factory showroom complex was built approximately six years ago. Craig McMullen of Citicoast Realty negotiated the lease.

New joinery business for West Gosford
Plantation Joinery Pty Ltd, a new business manufacturing timber windows and doors, has leased Unit 4 at 33-35 Young Street, West Gosford. The terms of the lease for the 366 sqm unit are $17,000 per annum including outgoings plus GST for 1 year with 1 year option. The 30 year old Besser Block-built complex comprises 3 units in an area zoned B6 Enterprise Corridor. Geoff Broadhurst of Chapman & Frazer Real Estate negotiated the lease.

Tuggerah office suite leased
Suncoast Enclosures has leased Suite G at 152 Pacific Highway, Tuggerah for 1 year with 1 year option at an annual rental of $16,000 excluding outgoings plus GST. The 72 sqm office suite is part of a concrete panel and glass complex built in 2008 and known as Tuggerah Straight Commercial. The complex also includes BCF, Super Cheap Auto, Floor World, 4in1 Fitness and others. Stephen Moore of RCI Group negotiated the lease.

Derry's Carpet Warehouse leases at Lifestyle Central North Wyong
Derry's Carpet Warehouse has a new 663sqm warehouse showroom at 9B Amy Close, North Wyong. Lease terms are $100,000 per annum plus outgoings and GST for a term of 5 years with 5 year option. Stephen Moore of RCI Group negotiated the lease.

Office leased at North Wyong
Sennah Pty Ltd, a 3 Mobile call centre, has leased a 167sqm office suite at 8 Amy Close, North Wyong. Lease terms are $30,000 per annum plus outgoings and GST for 2 years with 2 year option. Stephen Moore of RCI Group negotiated the lease.

Salvos lease bulky goods warehouse at West Gosford
Salvation Army Salvos Stores has leased a bulky goods retail warehouse at 30B Central Coast Highway, West Gosford.
Lease terms for the 1,600sqm property are $195,000 per annum including outgoings plus GST on a 5 year lease with 5 year option. The complex which was built approximately 8 years ago comprises other tenants including Repco and Caltex Service Station. The leased property is at the rear of the complex and was formerly occupied by The Pet Barn. Raine & Horne Commercial negotiated the lease in conjunction with LJH Commercial.

West Gosford industrial unit leased
Unit 4 at 411 Manns Road, West Gosford has been leased to Craig Giles Footwear Agencies Pty Ltd. Lease terms for the 189sqm unit are rental of $23,630 per annum plus outgoings and GST for 3 years with 3 year option. Chris Watson of LJH Commercial negotiated the lease.

Sales

Sydney investor buys North Wyong property
A Sydney investor has paid $1,135,000 (GST not applicable) for 2 Amsterdam Close, North Wyong that is presently leased to Thiess Services on a 3 year lease which has less than 2 years to run. Stephen Moore of RCI Group who negotiated the sale said the price paid provides the investor with around 12% return.

Owner / Occupier buys into Erina
An owner/occupier has paid $220,000 excluding GST for a brick construction factory/warehouse at 8 Bonnal Road, Erina.
The 109 sqm unit is part of a complex built recently in the Erina industrial area. Craig McMullen of Citicoast Realty negotiated the sale.

Sydney developer buys Berkeley Vale land
A Sydney developer has bought a vacant 1,600sqm lot at 6 Blade Close, Berkeley Vale paying $275,000 excluding GST.
The 4b zoned property is located in the new Berkeley Vale Industrial Park off Enterprise Drive that was developed by GWH Group. Stephen Moore of RCI Group negotiated the sale.

Sydney investor buys Toukley property
A Sydney investor has paid $395,000 for an investment property at Shop 1, 239 Main Road, Toukley. The property is leased to the Greater Building Society, which has been in the same premises for around thirty years. Their present lease has 2 years to run and 2 year option. Rental is $35,000 per annum net providing the investor with an 8.86% return. Mark Davies of LJH Commercial negotiated the sale.

West Gosford property sold on 8.26% return
A 190sqm industrial unit in a 4-unit complex at 1 Gibbens Road, West Gosford has sold at auction for $250,000 (GST not applicable) giving the buyer an 8.26% return on investment. The brick and steel complex, over ten years old, is on the corner of Gibbens Road and Merinee Road. Brendan Byrne-Bates of Raine & Horne Commercial, who listed the property, said that spirited bidding saw the opening bid of $200,000 quickly move to $250,000.

North Wyong industrial property sold at auction
A local investor has bought a vacant freehold industrial property at 4 Pavitt Crescent, North Wyong at auction for $518,500 excluding GST. The property comprises a 30-year-old 800sqm building on a 2,020sqm lot. Mark Davies of LJH Commercial was the auctioneer.

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