Hopes Of $20m For Complex
Newcastle Herald
Saturday July 19, 2008
A MAJOR commercial complex at Charlestown, home to Hoyts cinemas and AAMI insurance, is expected to attract offers above $20 million when it is listed for sale next week.
Fronting the Pacific Highway and opposite the near-finished $18 million Landmark apartment development, the complex known as The Forum sits on more than 8000-square metres of land and has breathtaking northerly and easterly views to the ocean and Newcastle CBD.Built in the late 1980s and being sold by CB Richard Ellis Newcastle agent Angus Klem and Ray White Commercial's John Parnham, it was bought by Domaine Property Funds eight years ago for $13.7 million.Last year, Mirvac, who is developing the Royal Newcastle Hospital site, bought out the remaining 50 per cent interest in Domaine Property Funds that it did not already own.Taking up the majority of the land it occupies and returning $2.4 million a year, the complex's other tenants include National Australia Bank, Guild Insurance Limited, MP Matthew Morris and PSI Superannuation (occupying a former Sizzlers restaurant). Both AAMI, set on four levels, and Hoyts take up more than half the complex's area.The AAMI motor vehicle assessment centre, attached to the AAMI headquarters, is not part of the sale, Mr Klem said.He said the cinema lease was due to expire in July next year and, if not renegotiated, would give redevelopment potential for the site. He said AAMI's lease expired in 2011."I think there are two things that could be done. One is converting Hoyts into office space by putting a mezzanine level through the middle or knocking it down and developing it into something like a residential complex with commercial component. That's the bit that sits north and has all the views," he said. Mr Klem said the complex's proximity to the $350 million Charlestown Square redevelopment would help attract interest from national developers and investors. Expressions of interest for its sale close on August 28.
© 2008 Newcastle Herald