632 Burke Road, Camberwell
Offered for the first time since 1977, the 2-level, 234sqm building on a 253sqm site leased to menswear retailer Cavalier sold for $4.39 million, on a 2.6% yield. Established in 1955, Cavalier is the longest-running business on the shopping strip and has a new 5+5-year lease.
1-7 Horsham Street, Stawell
An investor paid $8 million for the under-construction service station on a 5.6% yield. The 314sqm building on a 1.136ha site has a 15-year lease to United and includes a Pie Face outlet, and returns $450,000pa.
718-722 Glen Huntly Road, Caulfield South
3 Tudor-style shops and dwellings on 1 title sold for $3.03 million on a 3.5% yield. The 1920s property has a combined 522sqm building area on a 440sqm corner site and returns $106,164pa net.
40-42 Atherton Road, Oakleigh
The 278sqm ANZ bank-leased building sold for $2.522 million, on a 4.1% yield. The major lender has a 10-year lease returning $99,555pa net with 5% annual increases.
678-680 Mount Alexander Road, Moonee Ponds
The operators of café FI:KA in Hawthorn leased the 250sqm building for a new café and events space called Feekah on a 7+7-year lease at $80,000pa plus outgoings.
309 Toorak Road, South Yarra
The fully-fitted 140sqm restaurant was leased at $65,000pa net.
Suite 104, 140 Bourke Street, Melbourne
An owner-occupier bought the 99.1sqm suite with 2 parking spaces for $1.1 million
1, 333 Canterbury Road, Surrey Hills
An investor bought the ground floor office suite for $503,500, on a 4.9% yield.
Level 1, 420 Spencer Street, West Melbourne
Consultancy group Peak Urban leased the 278sqm space for 2 years at $460/sqm.
360-374 Whitehall Street, Yarraville
Fruit and vegetable business LaManna Premier sold its former 7,188sqm warehouse to Santospirito Flower Wholesalers for $8.85 million. LaManna sold 1 Minnie Street and 320 Whitehall Street close by to Santospirito in 2019, for $4.4 million and $2.2 million respectively, and Santospirito now holds 1.2ha of land opposite the docks. LaManna Premier’s head offices remain in Hyde Street, Footscray, and it has moved its warehousing to Epping, near the Wholesale Fruit Vegetable & Flower market.
Lot 20, 1270 Koo Wee Rup Road, Pakenham
The undeveloped 4,047sqm Industrial 1-zoned site sold for $1.256 million.
14 Acheson Place, Coburg North
The vacant 360sqm brick warehouse sold for $845,000.
10/15-17 Slough Road, Altona
A Sydney-based builder paid $495,000 for the 246sqm unit, which has a short-term lease to a café.
84-96 Bastings Street, Northcote
Property developer Lucent bought the 6,131sqm site for a reported price of around $10 million. The site was previously a bacon factory and had been remediated due to contamination from chemicals used to process meat. The vendor was Waratah Properties, which had owned the site since 1973, and was formerly known at Steiger & Boehm.
Church Street, Brighton Retains Near-Zero Vacancy Rate
Boutique caterer Blakes Feast is the newest addition to Church Street, Brighton, which continues to attract high-quality tenants and maintain its Melbourne-low vacancy rate.
Fitzroys’ Tom Fisher negotiated the 5+5-year lease of 111 Church Street at $70,000pa net on behalf of a private investor. The dual-level 110sqm building will be home to the business’s 2nd Blakeaway site, from where prepared meals, breads, pastries and other daily items will be available for easy delivery or takeaway.
Blakeaway was launched in 2020 to offer prepared meals from Blakes Feast kitchens as Melburnians endured the first lockdowns of the pandemic. Initially available only online, Blakeaway is now looking to expand across Melbourne and capture established markets with a more readily accessible service.
“This deal reflects the huge take-up of space along shopping strips by food and beverage operators, and the ongoing demand from quality tenants for a prized space within Church Street, Brighton and its affluent, established catchment,” Fisher said.
“The huge shift in enquiry and leasing deals towards food and beverage operators seen with the arrival of COVID has continued through 2021. Demand for takeaway and delivery services has surged while Melburnians go through intermittent lockdowns,” he said.
Some 50% of leases struck by Fitzroys along Melbourne’s shopping strips this year have been to food and beverage operators, well above the average food and beverage presence of 28.4% Melbourne-wide, according to Fitzroys’ new Walk the Strip report.
“Hospitality operators have been snapping up small spaces for lease that allow them to quickly expand and establish themselves in new markets. While Blakeaway has been available online, it is opening bricks and mortar stores to make it more readily accessible to receptive catchments,” Fisher said.
Fitzroys’ Walk the Strip report also showed that Church Street, Brighton’s vacancy rate has come down throughout the COVID period to just 0.7%, the sharpest across Melbourne. Fisher said the long-term lease was yet another example of the high regard and unwavering confidence retailers have for Church Street.
South Yarra Set for Australia’s Largest Build-to-Rent Project
Australia’s largest build-to-rent project to date has been approved for a site in South Yarra’s Forest Hill precinct.
US-based Greystar will develop the $500 million facility, which will have 625 apartments across 2 towers of 30 and 21 storeys over a combined basement, and include 2,000sqm of office space, ground level retail, and a pedestrian laneway linking the facility to South Yarra train station.
Greystar bought the neighbouring Yarra Street and Claremont Street sites early in 2020. The development is the 1st to be built as part of a $1.3 billion Australian build-to-rent fund Greystar put together with backing from Canada’s Ivanhoé Cambridge, Dutch group APG Asset Management, and Finland’s largest pension fund, Ilmarinen.
The Victorian Government announced last year it would halve land tax for build-to-rent development from 2022 until 2040.
Major build-to-rent projects in Melbourne’s include Mirvac’s developments next to the Queen Victoria Market, on the former Melbourne Convention Centre site at 7 Spencer Street, and a site in Brunswick, while Oxford Properties is planning a $450 million project in Footscray, and investment manager Hines has just bought a 4,247sqm site also in Brunswick for a $250 million building.
German Fund Manager Buys Port Melbourne Wine Warehouse
Industrial investment asset yields continue to tighten, with German-based fund manager Institutional Investment Partners buying the Port Melbourne warehouse home to Rathbone Wine Group for $81.6 million, on a yield of 3.6%.
The Jreissati family were the vendors of the 1.69ha corner site at 262 Lorimer Street, selling the property 7 years after they paid $31 million in a sale and leaseback deal with Rathbone Wine Group. The 15,246 sqm building includes a temperature-controlled warehouse and distribution facility, a 4-level office, café and a multi-storey car park.
Rathbone Wine Group, which owns wine brands Yering Station, Xanadu and Mount Langi Ghiran, has signed a new 13-year lease, while the CFMEU’s training unit leases a 2nd floor office space looking out across the Yarra River.
The site is near the Fishermans Bend innovation precinct, where the Victorian government has committed $179.4 million for the first stage of the former General Motors Holden site’s redevelopment into a technology hub. The University of Melbourne has just announced it will open a new campus in the precinct for its faculty of engineering and information technology.
Large Format Retail Attracts Investment
QIC has bought the Craigieburn Junction centre for $135 million, as large format retail assets perform strongly during the COVID period.
The 25,000sqm centre is tenanted by Nick Scali, Supercheap Auto, Freedom, Caltex, Hungry Jack’s, a supermarket, medical centre and childcare centre, and sold at a 5.4% yield. It is on a 6.13ha site that offers value-add opportunities.
PGIM Real Estate was the vendor of the centre, which opened 2 years ago after being developed by Oreana Property Group.
Meanwhile, ASX-listed HomeCo Daily Needs Trust bought the Pakenham Lifestyle Centre on the Princes Highway from 3 Melbourne families for $98.5 million, on 6% yield. Situated on a 7.6ha site, the 30,716sqm centre is anchored by JB Hi-Fi, The Good Guys, Amart Furniture and Supercheap Auto.
The trust also bought a Coles-anchored neighbourhood centre in Woodlea for $55.3 million, at 5.25%. The asset is part of the town centre in Mirvac and VIP Properties’ Woodlea housing estate.
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. Terms/Privacy © Copyright 2021 Fitzroys.