Wealthy entrepreneurs snap up more bargain properties

The rush amongst some of Australia’s richest entrepreneurs to buy commercial property shows no signs of slowing up, with deals in Queensland and Melbourne highlighting the fact that canny, cashed-up buyers can still find bargains.

Billionaire John Van Lieshout, who formerly owned the Super A-Mart furniture chain, has snapped up a bulky goods outlet on the Sunshine Coast for $68 million, according to a report in The Australian.

The seller, Valad Property Group, bought the bulk goods centre, known as Home Central Kawana, for $86.8 million in 2005, which indicated Van Leishout has scored a big bargain.

He has been aggressively buying discounted property around Queensland over the last 18 months, including two shopping centres last year and 34-lot subdivision near Byron Bay.

Down in Melbourne, Adelaide property tycoon Con Makris has made a rare foray out of his hometown, buying a suburban shopping centre in Melbourne.

According to the Australian Financial Review, Markis paid between $80-90 million for the Endeavour Hills Shopping Centre. Markis is listed on BRW’s Rich 200 with his son Ross. Their fortune is estimated at $883 million.

Also in Melbourne, the Knowles family, best known for their involvement in the aged care sector, has paid $59 million for an office block in the CBD. According to the AFR, the building was valued at $69 million in March.

Property experts say the key to these bargain property deals is debt – the sellers have plenty and the wealthy buyers don’t.

If banks continue to shun the property sectors and more building owners are forced to sell, then the bargains should continue.