Hengyi have made another step into the Australian market buying the Abbotsford headquarters of Cartlon & United Breweries.
Hengyi's purchase of the properties has caused a marvel in the Melbourne property market by paying $20 million for the entire office building as well as adjacent warehouses on the Yarra River.
With the deal officially confirmed, it has forced CUB to stress that it has no plans to close its doors to Abbotsford Brewery, however its 'eventual closing' will in turn affect the special zoning area supported by the brewery.
In 2007, Charter Hall and the Wyllie Group created a portfolio sale and leaseback deal. The deal included the purchase of 10 properties which are located on two hectares of land around the Abbotsford Brewery which came to the value of $41 million. Subsequent to the sale of various parts of the portfolio, the Wyllie Group paid $18.3 million in 2009 to ensure they were the sole owner of the properties.
The buildings will return $2.2 million in rent alone, given that it was originally built back in 1928 for Kodak. The building is hard to miss with its signature curved 5-storey office building design running from 2-6 Southampton Crescent. The purchase made by Hengyi also includes a vacant warehouse located at 36 Bond Street as well as the warehouse complex running from 10-32 Duke Street, located on a 2404 square metre lot, and will provide Hengyi with an average $516 286 a year. The lease of the property is set to expire in 2017.
This is expected to be a long-term investment for Hengyi whose deal is a high-yielding investment, and will re-lease the space after the current occupants CUB have moved out.
Hengyi's other developments include the street tower located at 199 William Street that has been an abandoned building for many years, as well as a 500 plus apartment complex and the Light House tower holding 69 story's overlooking the renowned Queen Victoria Market.