Baron, Vanilla form joint venture

Western Australia-based property syndicates Baron Property Group and Vanilla Property Investments have made a $10 million play for an aged-care facility as part of a new joint venture.

The joint venture, called Baron Vanilla Management, has settled its first acquisition: the 60-bed Montana Aged Care facility at 36-38 Harbour Street in Mosman, NSW.

Baron Vanilla Management co-director Joseph Rapanaro said the joint venture was established to source and manage reliable commercial property investments on behalf of the syndicators’ wholesale investors.

Fellow director Miles Ashton said investor demand for the 3,540 square metre facility had been strong.

“The trust closed oversubscribed within a matter of days, with investors being attracted by the strong cash return of 7 per cent per annum supported by a long 20-year lease to leading aged care provider, Hall & Prior,” Mr Ashton said.

Baron Vanilla Management has now launched its second property syndicate, the BV Industrial Plus Fund, which the directors said had already secured three well-leased industrial properties located in WA.

The industrial fund is targeting a cash return on equity of 7.5 per cent per annum.

Collectively, Baron Property Group and Vanilla Property Investments have combined assets under management valued at about $150 million.

Property deals fortnightly wrap-up:

Cedar Woods splashes $63.5m

WA-based property group Cedar Woods has purchased two sites in Melbourne, adding 725 lots to its portfolio.

The 14.6-hectare site at Fraser Rise already has planning permits in place for a 225-lot subdivision, with potential upside in yield.

The 39.7ha site at Fieldstone is subject to the company receiving approval to subdivide the site from its parent title, anticipated in FY23.

Claremont retail sale

The former Commonwealth Bank building on the corner of Bay View Terrace and St Quintin’s Avenue in Claremont has been sold for $5.1 million.

The bank occupied the 348 square metre building from 1913 and it has now been acquired by ladies’ fashion retailer Scanlon and Theodore.

The deal was brokered by Colliers International manager investment services Shane Isaacs.

APIL sells estate for $23.3m

APIL Group has sold its multi-tenanted industrial estate in Welshpool for $23.3 million.

The 19,090 square metre estate sits on a 3.1-hectare site, on the corner of Orrong Road and Pilbara Street, with a weighted average lease expiry of 2.43 years.

The off-market transaction was brokered by national real estate firm Savills and sold on a passing yield of 6.75 per cent.