Weekly Wrap

Fitzroys Weekly Wrap - 17th November 2017

Posted on 16th November 2017

Retail sale, 146 Glenferrie Road, Malvern
Offered for the first time in 80 years, the imposing corner building in a prime Melbourne suburb strip position sold under the hammer for $6.392 million. The vacant 414sqm two-level property is on a 555sqm site that has three street frontages, with 14m to Glenferrie Road, and situated between Coles Supermarket and Dan Murphy’s with a large council car park at rear.

Retail sale, 781-783 Pascoe Vale Road, Glenroy
The two storey corner building with a combined triple frontage of 76m sold at auction after competition from 6 bidders. Offered with vacant possession, the property was knocked down to an owner occupier. 

Retail/hospitality lease, 360 Collins Street, Melbourne
Melbourne Pasta Bar is opening an Italian restaurant in the 130sqm laneway space after signing a five-year deal with options at $126,000pa gross.

Office lease, Level 2, 115 Collins Street, Melbourne
Character office spaces continue to attract tenants in large numbers. A whole floor in the historic Austral Building is the latest to attract strong enquiry, with a financial services group eventually winning out for the 250sqm level 2 space. It will pay $155,000 per annum plus GST, with the lessor an international private investor. The English Queen Anne revival building was built in 1890 and has a striking red brick frontage.

Industrial sale, 9 Vanessa Road, Campbellfield
The 27,310sqm site had a 9,573sqm office and warehouse utilised as the packaging facility of Orara, formerly Amcor. Snack Brands Australia’s John Wade acquired the property for $10 million.

Industrial sale, Unit 1, 132-140 Keys Road, Cheltenham
An owner occupier purchased the two-storey office and warehouse block off the plan for $938,500. The 254sqm property is located within the Modus Business Estate.

Industrial lease, 1 Grosvenor Street, Abbotsford
A picture framing business has moved out of the 515 sqm showroom, office and warehouse, and developer Albert Dadon has stepped in to the 515 sqm showroom, office and warehouse building

Land/development sale, 1-9 Allen Street, Oakleigh
A local developer has picked up the 4,607sqm site from the Department of Health and Human Services for $9.128 million in an off-market deal. The site is located 320m from Chadstone Shopping Centre.

Specialised asset sale, 55 Grant Road, Somerville
The YMCA Somerville health and Aquatic Centre sold for $2.65 million at a 6.9% yield, leased until early 2019 with a three-year options, with the tenant expected to refurbish at the end of each term. It has a 1,841sqm building on a 5,037sqm site.

Talking points

Richmond still roaring: Garda Diversified Property Fund has acquired a 3,621 sqm site within the popular Botanicca Business Park in Richmond with an end value of around $65 million, in a deal negotiated by Paul Burns of Fitzroys.

It will build a five-level, 7,254 sqm A-grade office complex with a 5-star NABERS rating on the site to be known as Botannica 9, with strong tenancy demand already lodged for the future space. It will represent the first of a “new generation” offering in the highly sought after CBD fringe suburb, which alongside its former industrial area of Cremorne is undergoing a renaissance. 

A wide range of tenants are being attracted to the suburb given its close proximity to the CBD and hospitality and lifestyle offerings nearby, as well as a number of medium and high-density residential developments being introduced to the area. Major recent entrants to the market include the local operations of Disney and major job ads and recruitment hub Seek.

Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys.