Capital Gain
Firmus backer and property developer Wes Maas, dubbed the Dubbo billionaire, is having a volatile week, but it hasnโt stopped him trying to offload a new shopping mall.
Maas has decided to put his Village Southlakes mall on the outskirts of Dubbo on the market for a cool $50 million. However, just as he did so, his ASX-listed Maas Group was caught in the furore surrounding data centre wunderkind Firmusโ much-talked-about float on the ASX.
Maas Group, has a 3.2 per cent stake in Firmus and also holds lucrative multimillion-dollar work contracts with the AI infrastructure developer. Firmusโ backers and bankers have been busy chasing a blockbuster $43.9 billion float, but they appear to have sharply down-priced the offering when faced with investor scepticism this week.
While Maasโ $50 million sale of a shopping centre is small money compared to Firmusโ enormous bookbuild, a quick transaction of the mall may salve some of the share price pain of Thursdayโs near 25 per cent slump, which wiped almost $550 million off Maas Groupโs market value.
Firmus has plenty of heavyweight backers, but Maas Groupโs ASX listing bore the brunt of investor anxiety about the float.
Maas, a former player for the South Sydney NRL team, founded his business about 20 years ago with just $14,000. The firm listed on the ASX in 2020 at a price of $2 a share.
Thursdayโs plunge from almost $7 to nearly half that in one morning session of trade prompted the ASX to send Maas Group a query, to which the group responded saying it โhad no knowledge of any undisclosed material information driving the dropโ.
The groupโs Village Southlakes shopping centre is at the centre of the large-scale Southlakes master-planned development about 5.5 kilometres from Dubboโs CBD in NSW. The mall occupies a 24,200-square-metre corner site at Stream Avenue and Boundary Road, with 317 car spaces and access to the Mitchell and Newell Highways.
It will serve an immediate catchment that includes more than 1000 new homes currently under construction and is anchored by a new 10-year lease to Coles and Liquorland commencing 2026, with options extending to 2066, according to JLLโs Sebastian Fahey and David Mahood, who are advising on the sale.
Pub frenzy
Former Wallaby front-rower turned hotelier Bill Young has outlaid $50 million to add The Epping Hotel in Sydneyโs north to his already large pub empire.
Lyon Group sold the big-footprint pub, built in 1928 on Beecroft Road, which sits on a 1350-square-metre site. The venue boasts average weekly revenue above $234,000. On an annualised basis, that gives its new owner Young more than $12.1 million from its bar, bottle shop, food, and gaming operation receipts.
The pub sector is in the midst of a deal-making frenzy, with large amounts of cash being funnelled into venues by long-term pub operators.
According to Young, one of the attractions of the popular Epping pub was the siteโs development potential. Its zoning allows for a 72-metre height limit and high floor space ratio.
โWeโre very pleased to secure the Epping Hotel, which we see as one of the most strategically positioned hotel assets in metropolitan Sydney,โ Young said.
The former Wallabyโs portfolio includes the Concord Hotel, Five Dock Hotel, The Palace Hotel in Mortlake and Bar Broadway in Sydney CBDโs southern corridor.
JLLโs Ben McDonald and Gus Moors advised on the sale.
Cabra matters
Two whole-block apartment buildings in Cabramatta, in the south-west, have sold for a combined $5.935 million at auction after attracting more than 100 enquiries. The properties were acquired by local Asian and private investors.
Old-style apartment blocks that offer development potential are proving to be attractive to small and medium private investors.
The building at 2 Fisher Street sits on a 702 square-metre block and has nine two-bedroom apartments along with nine lock-up garages. It brings in gross income of $170,560 a year with an estimated market rental potential around $210,600 per annum.
The property was part of a deceased estate offloaded by the Wassell family, who had held it since 2000. It was bought by a private investor, Dr Lam.
Over at 148 Longfield Street, vendors Isabella Feng and John An have just sold an apartment โ with five two-bedrooms and a single one-bedder โ on a 697 sq m block with on-site parking.
It generates a gross income of $129,480 a year with estimated market rental potential around $147,160. It has been held by the Feng and An family for more than a decade before they chose to sell to private investor, Fares Fares. Colliersโ Andrew Bui and Harry Bui completed the sale.
carolynannecummins@gmail.com
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