Fitzroys Weekly Wrap - 18th August 2017
Industrial/development sale, 213 Sunshine Road, Tottenham
The 16,457sqm site with future development potential sold to an Asian investor and land banker for $6.5 million, on a 4.1% net yield. It has 12 separate titles and 9,346sqm of industrial buildings.
Industrial lease, 60 Technology Drive, Sunshine West
VicTrack has signed a three-year deal over the 1,542sqm modern office and warehouse facility at $122,500pa net.
Industrial lease, 106-114 Walker Street, Dandenong
Gym operator Anytime Fitness will move into the two-level space on a five-year deal at $127,500pa.
Retail/hospitality sale, 18 Peel Street, Collingwood
The premises of the Oxford Larder café sold for $640,000 under the hammer, at a record rate of $14,200/sqm following competition from six bidders at auction. It is positioned on the ground floor of a contemporary mixed-use development with 53 apartments and has a secure 5x5x5x5-year lease to café.
Retail sale, 131 Thomas Street, East Brighton
Private traders have swapped the milk bar property for $885,000 after more than 70 enquiries. It has a 148sqm building on a 227sqm site and sold at a 3.5% yield.
Retail lease, 228 Auburn Road, Hawthorn
Fine Music, a sheet music and instrument retailer, leased the new 270sqm shop at $55,000pa net on a five-year deal with a five-year option, at $203.70/sqm.
Retail lease, 283 Victoria Street, Abbotsford
A beauty salon has leased the 200sqm space at $58,000pa net, or $300/sqm, over five years with options.
Land/development sale, 1 Latrobe Street, Cheltenham
A local builder-developer has purchased the 1,429sqm site for $2.7 million, which has a permit for 11 townhouses, comprises three three-bedroom and eight two-bedroom apartments. The sale reflected a lot rate of $245,545/lot.
Land/development site, 1059-1061 Toorak Road, Camberwell
A Chinese group picked up the 1,700sqm site with a 36m frontage to Toorak Road for $5.5 million before auction. The price reflected a land rate of $3,235/sqm.
Office sale, 275 Wattletree Road, Malvern
The freehold building sold for $4.07 million on a 5.2% yield in an off-market deal. A quarter of its income is drawn from a rooftop tenancy with a short term remaining on its lease. Sold on a land rate of $8,734/sqm.
Melbourne named World’s Most Liveable City: The Economist has named Melbourne as the World’s Most Liveable City for the seventh consecutive year, as it continues to attract new residents and international students at strong levels.
ABS figures had Melbourne returning the largest population growth of any capital over the past 10 years, with almost 965,000 added in that time. Forecast growth is expected to see Melbourne hit five million people early in the next decade, with the current population at more than 4.7 million.
Fitzroys Director Rick Berry said that underpinning the start of a turnaround of many of our strip centres is a growing population within their catchment as new residential and commercial projects are completed.
“A large proportion of Melbourne’s rapid population growth is being accommodated in the inner- and middle-suburban retail strips and this is generating sustained local demand – particularly in the hospitality and retail services sectors,” he said.He said the population growth had been underpinned all sectors of what would otherwise have been a weak retail leasing market over the last few years.
Fitzroys has just released Walk the Strip, a comprehensive guide to Melbourne’s retail strips and the outstanding commercial real estate opportunities they represent. Download your copy at fitzroys.com.au/walk-the-strip
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.