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Fitzroys Weekly Wrap - 11th August 2017

Fitzroys Weekly Wrap - 11th August 2017

Retail sale, Ground Floor, 246 Dorcas Street, South Melbourne
The empty shell corner retail space sold for $1 million, at circa $10,000/sqm, to an owner occupier after interest from a range of other owner occupiers and investors. It is positioned at on the ground floor of the Jewel mixed-use development.

Retail sale, 10 Church Street, Brighton
An investor purchased the Toni & Guy premises for $2.26 million, at a 4.2% yield. It sold with a new eight-year lease with a five-year option to the hair salon.

Retail lease, 103 Gipps Street, Collingwood
A fashion retailer has signed a three-year deal with options over the 260sqm property with office, warehouse and showroom space, at $88,000pa or $360/sqm.

Office lease, Level 2, 259 Collins Street, Melbourne
Education provider MACI has signed a three-year deal over the 638sqm whole floor at $267,960pa plus GST from a private investor. The space was a rare 9b compliant offering highly sought after by education groups. It was leased with an existing fit-out with three classrooms and some offices, and MACI plans to further partition the premises to add an additional five classrooms.

Specialised asset sale, 8 Parliament Street, Point Cook
The 850sqm purpose-built childcare facility on a 2,383 sqm corner site sold under the hammer for $5.78 million at a circa-5.53% net yield. It has a license for 114 places and a 15-year lease to Sparrow Early Learning until 2029 with an option to 2039.

Industrial sale, 107 Wells Road, Chelsea Heights
The 3.53ha, Industrial 3-zoned site sold for $8.71 million with approved permits and plans for a development of 55 warehouses and four showrooms.

Industrial sale, Mulgrave, 6 Anzed Court
The 3,373 sqm modern office and warehouse site sold for $4.55 million on a 6.26% yield, with a 10-year lease plus options to Relay Monitoring Systems. Sold at a land rate of $1,349/sqm and building rate of $2,500/sqm.

Industrial lease, 238 Lygon Street, Brunswick East
The 654sqm showroom and warehouse property was leased by a media company at $90,000pa on a 3+3+3-year deal, at a building rate of around $145/sqm.

Talking points

Box Hill continues to draw developers: A Chinese development group has reportedly acquired two sites in fast-evolving Box Hill for $3.5 million each, according to Australian Property Journal.

It included the sale of the 1,090sqm former service station site at 500 Station Street after being on the market for just one day, on a 1.8% yield with a lease to an exhaust repair centre. The neighbouring 1,020 sqm site at 480-482A Station Street was picked up in an off-market deal at a yield of below 3%.

Combined, the properties total 2,110sqm. Both are zoned industrial but have residential and mixed-use development potential.

The suburb has recently seen the 1,972sqm BP petrol station at 843 Whitehorse Road sell for $22.55 million with residential and hotel potential; change hands for $12.2 million and 22-24 Prospect Street for around $10.5 million.

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.

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