Stonebridge Property Group launch National Asia Practice Platform

Pandemic drives slowdown in private off-shore Asian investors, whist Domestic Asian investors remain active

The COVID-19 pandemic has driven a fall in private off-shore Asian investors, however Australia’s commercial property markets can look forward to new wave of investment once travel restrictions are lifted, according to national commercial agency Stonebridge Property Group’s newly launched Asia Practice team.

Data from the team’s Directors Kevin Tong and Chao Zhang, who have completed transactions in excess of $3 billion to Asian buyers over the last five years, reveals a dramatic decline in the number of private off-shore Asian investors in 2020 compared to 2019, whilst domestic Asian investors have significantly increased.

“This fall is directly related to travel restrictions. Communications with our extensive Asian community networks, which we have built up over the last 10 years, reveals a hungry off-shore cohort eagerly awaiting any lift in travel restrictions which will allow them to invest in Australian stock.

“Hong Kong is a great example of cashed-up Asian investors wanting to invest in Australia. We witnessed a hive of activity pre-COVID-19 with several key transactions early in 2020 to Hong Kong based investors – investors who are now essentially sitting on the sidelines waiting for the borders to open up.

“ The only hurdle we see for a high volume of sales activity to this buyer profile is a lack of available stock. In the instance that supply levels across all sectors does not normalise in 2021, we anticipate the unexpected price escalation as a result.,’’ Mr Tong said.

He said the low cost of debt had been a key driver in the re-emergence of domestic Asian investors.

Below is a table analyzing transactions to Asian investors in Commercial Property (Retail, Commercial & Industrial)

Asian investment International Asian investors (REITs and Funds) International Asian investors (Private) Domestic Asian investors*
2019 41% 40% 19%
2020 44% 12% 44%

Source: Stonebridge Property Group Asia Practice team.

*Groups that have migrated to Australia within the last 10 years.

 

Mr Zhang said the Asia Practice team –  one of the most experienced Asia-dedicated commercial agency teams nationally – was excited about the launch of  the national business.

“Having witnessed the growth of the Asian buyer profile in commercial property first hand we believe this national platform will provide the most comprehensive Asia specific service available.

“Over the last 10 years we’ve established firm, long lasting, and mutually beneficial relationships within the Asian communities both in Australia and off-shore. In doing so we have built an enviable network and first rate system that provides vendors with the opportunity to expose their properties to the widest possible pool of Asian investors locally and offshore,’’ Mr Zhang said.

He said the maturity of the Asia buyer profile over the years had seen their requirements become much more asset specific.

“Once an almost purely passive investment cohort, Asian buyers have, particularly over the last few years, broadened their investment horizons to include assets, for example, providing long-term site development potential as well as attractive yields.

“Our response has been to develop specialised agents in each sector including retail, development sites, and other markets,” added Mr. Tong.

The Asia Practice launch follows the recent launch of Stonebridge Property Group’s Melbourne team headed by Justin Dowers and Julian White.

About Stonebridge

Stonebridge was formed in Sydney in 2008 by directors Jonathan Fox, Carl Molony, Phil Gartland and Lincoln Blackledge.

The group quickly established themselves as a major force in the sale of shopping centres and development sites in Australia and New Zealand. Recent sales include last month’s $150 million sale of Glenmore Park Town Centre to HomeCo, and the $46 million sale of a large-format retail centre at 300 Parramatta Road, Auburn in March.

Latest news

April 2021
Prime ground lease service station not to be missed in Melbourne’s inner east
Stonebridge Property Group’s listing of the standalone Caltex Service Station in Burwood East will test the market for a product that combines both a secure...
Read More
April 2021
SOLD: Lendlease retail fund successfully sells CS Square Shopping Centre
The Lendlease managed Australian Prime Property Fund Retail (APPF Retail) has reached agreement on the sale of CS Square in Victoria  to DeGroup for circa...
Read More
April 2021
Flinders Lane café sells on 3.2% yield
A popular café on Flinders Lane in the Melbourne CBD has sold this week on a sub 3.2% yield and a building rate over $35,000/sqm....
Read More
April 2021
Max Warren joins Stonebridge Property Group
Stonebridge Property Group continues to expand its Melbourne team, with former Aston Commercial agent, Max Warren, joining as Manager in the City Fringe market. In...
Read More
March 2021
Woolworths to sell brand new supermarket in Melbourne metropolitan growth corridor
Stonebridge Property Group has been appointed to sell a brand-new Woolworths Supermarket in the Melbourne Metropolitan growth suburb of Roxburgh Park, 25km* North of Melbourne...
Read More
March 2021
Investors tipped to ‘dip’ into blue-chip Heidelberg investment
The headquarters of award winning ‘Chunky Dips’ manufacturer ‘Simply Delish’ has hit the market and is expected to receive strong interest from investors given the...
Read More
March 2021
Stonebridge Property Group Expands into Suburban Strip Retail
Leading Australian owned commercial real estate group, Stonebridge Property Group (SPG), is growing again with former CBRE Director, Rorey James, together with senior staff Nic...
Read More
March 2021
9 Mornington shops to go under the hammer on behalf of Mortgagee
An iconic Mornington retail complex will go to auction next week, under instruction by the mortgagee. Located at 53-55 Barkly Street, the complex commonly known...
Read More
March 2021
Permit approved Box Hill site to be sold at Auction
A 725sqm site in the heart of the Box Hill Activity Centre has been listed for sale by Stonebridge Property Group’s Julian White and Chao...
Read More
March 2021
Versatile landholding to be sold in amenity dense Gardenvale
A 1,115 sqm site in the high value suburb of Gardenvale has hit the market, and with a high exposure to the Nepean Highway and...
Read More
March 2021
Landowners Unite to Create Officer Mega Lot
A large 12ha site in the centre of Officer, one of Melbourne’s fastest growing suburbs in Melbourne’s south east growth corridor has hit the market...
Read More
March 2021
Large Mornington Peninsula landholding to be sold after 43 years of ownership
A large 15.6ha site in the Mornington Peninsula has been offered to the market with plans to be sold via Expression of Interest. Stonebridge Property...
Read More
February 2021
Mornington Village Shopping Centre on the Market
Stonebridge Property Group’s listing of Mornington Village Shopping Centre will test the market as the first core Victorian Neighbourhood Shopping Centre offering of 2021. The...
Read More
February 2021
Dylan Kilner joins Stonebridge Property Group
Leading commercial real estate group, Stonebridge Property Group, is expanding its Melbourne team, with former CBRE agent, Dylan Kilner joining as Manager in the City...
Read More
February 2021
Reading Entertainment lists 5-hectare Sydney site for sale
Stonebridge Property Group have been exclusively appointed to sell the landmark ‘Auburn Redyard Entertainment Centre’, 98 & 100 Parramatta Road, Auburn, an expansive 4.82-hectare development...
Read More
February 2021
City fringe resilient despite pandemic
Melbourne City Fringe Market Update FEBRUARY 2021 Despite the significant headwinds 2020 presented, our data indicated that the city fringe market proved resilient with minimal...
Read More
February 2021
Permit approved corner landholding in prestigious Kew to be sold via auction
A 1,259sqm permit approved corner landholding for 14 luxury apartments in Kew, will be sold via auction on Thursday 11th March 2021 at 12:30pm onsite....
Read More
February 2021
Stonebridge Management Team secures ‘Beecroft Place’
Beecroft Place – Hannah Street, Beecroft NSW Modern high-quality community shopping centre, forming part of the Beecroft Place mixed-use development, positioned in the heart of Beecroft...
Read More
January 2021
Ballarat Lifestyle Centre sells for $12.39 million, investor demand returns for regional investments
Stonebridge Property Group in conjunction with Colliers International has sold Troon Group’s Ballarat Lifestyle Centre for $12.39 million in a strong signal that investor confidence...
Read More
January 2021
SOLD: Stonebridge sells Ropes Crossing Village for $42 million
Stonebridge Property Group has sold Ropes Crossing Village for $42 million. The Centre sold to an Offshore Investor after a select off-market EOI campaign, reflecting...
Read More
January 2021
Coles Group to sell trophy Victorian supermarket investment – Coles Woodend
Stonebridge Property Group has been appointed to sell a newly developed Coles in Woodend, a prime supermarket investment secured by a brand new 10-year lease...
Read More
January 2021
Buyers shift to pandemic proof investments as Woolworths Torquay transacts for a record sub 4% yield
Woolworths Torquay Central represented the first major supermarket sales campaign in Victoria following the extensive lockdown period. The 2,980sqm regional freestanding supermarket sold for $25,100,000,...
Read More
December 2020
Stonebridge sells Charter Hall’s Liverpool automotive asset for a premium
Stonebridge Property Group has sold ‘Mitsubishi Liverpool’ 375-377 Hume Highway, Liverpool NSW for $22.5 million, just days after closing a public expressions of interest campaign....
Read More
November 2020
Central Coburg Townhouse development site for sale
A 5,088sqm permit approved site for 36 townhouses is for sale in the heart of Coburg and within the Pentridge Prison redevelopment precinct. Stonebridge Property...
Read More
November 2020
Fawkner offers prime asset to yield hungry market
– BP Westernport Service Centre returning $1.048m pa – Melbourne based property funds manager Fawkner Property has put its BP Westernport Service Centre in Cranbourne...
Read More
November 2020
Troon Group‘s Ballarat Lifestyle Centre on the Market
Ballarat’s Troon Group has listed its brand new Ballarat Lifestyle Centre as the Large Format Retail sector enjoys relatively good times on the back of...
Read More
October 2020
Woolworths Torquay Central to fill major investment demand / supply imbalance
Stonebridge Property Group’s listing of the standalone Woolworths Torquay Central supermarket will test the market for a product that has long been an investor favourite,...
Read More
October 2020
Stonebridge negotiates $150 million Glenmore Park Town Centre sale
Stonebridge Property Group has negotiated the single largest neighborhood centre transaction in 2020 with HomeCo’s $150 million purchase of the Glenmore Park Town Centre. Located...
Read More
September 2020
Stonebridge to merge with new Melbourne agency
Leading Sydney based commercial real estate group, Stonebridge Property Group, will open a Melbourne office this month, following a merger with a group of Melbourne’s...
Read More
June 2020
Iconic neighbourhood centre sells for $47 million
Shopping centre in Newcastle transacts for $47 million as demand for neighbourhood centres hold firm Stonebridge Property Group’s Philip Gartland in conjunction with JLL’s Nick...
Read More
January 2020
Sold for $68 million – St Marys Village, NSW
Stonebridge Property Group, in conjunction with McVay Real Estate, is pleased to announce the sale of St Marys Village for $68 million. St Marys Village...
Read More
September 2019
The US shows there’s an upside to current retail shifts
There has been much gloom about Australia bricks and mortar retail recently, from the demise of the department and discount department store, to the closure of...
Read More