Fitzroys Weekly Wrap - 8th September 2017
Retail sale, 1397 Toorak Road, Camberwell
An investor nabbed the two-level freehold leased to National Australia Bank prior to auction for $3.48 million, at a circa-4% yield. NAB has a four-year lease over the double-fronted brick building of 551sqm, on a 446sqm site, with two further two-year terms.
Retail sale, 436-442 Sydney Road, Coburg
A local investor acquired the historic Dunnes Building at auction for $4.12 million, on a sharp 3.2% yield. It marked the first time the 698sqm landholding with four two-level shops had changed hands in 126 years.
Retail/hospitality lease, 475 Elizabeth Street, Melbourne
National group Sushi Hub has leased the 139sqm space at $1,500/sqm for its fifth CBD site.
Retail/hospitality lease, 305 Coventry Street, South Melbourne
Market Lane coffee has signed a decade-long lease at $45,000pa for the space opposite South Melbourne, and will open its sixth café at the site.
Hotel sale, Park Hotel, 191 Nicholson Street, Abbotsford
Two brothers have sold off the two-storey 500sqm building to an investor, with less than a year remaining on the current leasehold and a three-year option, for $3.18 million. The sale price reflected a 2.6% yield and was more than $900,000 above reserve.
Industrial sale, Unit 1, 19-23 Clarinda Road, Oakleigh South
International computer hardware company Gigabyte Technology has purchased an industrial facility with a two-level office and showroom of 259sqm and 298sqm warehouse for $1.48 million for its business. Sold a building rate of $2,661.87/sqm.
Office/industrial sale, 393-399 Macaulay Road, Kensington
The 1,551sqm site has a two-level 2,263sqm 1940s building of brick and concrete with intact external and internal features, and sold for $6.605 million under the hammer. Sold at a land rate of $4,238.54/sqm and floor rate of $2,918.70/sqm, at the end of a lease returning $119,000pa and passing yield of 1.8%.
Office sale, 187 Ferrars Street, South Melbourne
The 385sqm three-level building sold for $2.125 million in an off-market transaction. Zoned Capital City 1, it is on a 158sqm site and has three car parks, and sold near the end of a lease at a passing yield of 4.63%.
Land/development sale, 61-63 Flemington Road, North Melbourne
The Mixed Use-zoned 231sqm site sold for $3.72 million, with a height allowance of up to 40 metres and three street frontages. Sold at a land rate of $16,103.89/sqm.
Development demand entices offshore capital east: Foreign groups continue to snap up residential development sites in Melbourne’s eastern suburbs. Earlier this week Chinese developer Wonder Property paid $4.2 million for the 3,886sqm site at 99-101 Old Warrandyte Road, in Donvale, which is likely to be used for townhouses. It follows the group’s first Australian purchase in nearby Doncaster earlier this year, of the 1.3-hectare 152 Anderson Creek Road site for $18 million with apartment project potential from the Uniting Church of Australia.
Also this week, another development site in booming Box Hill changed hands, with a Chinese-backed local developer acquiring 31-35 Prospect Street for $13.5 million, having reportedly missed out on the recent offerings of 15-17 Prospect Street and 843 Whitehorse Road nearby that sold for $12.19 million and $22.25 million respectively. The 1,653sqm 31-35 Prospect Street site has potential for an apartment project of at least 20 levels.
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.