Weekly Wrap

Fitzroys Weekly Wrap - 26th October 2018

Posted on 26th October 2018

Edm Headers 15

Retail Sale, 242-244 High Street, Ashburton
A local buyer picked up the multi-tenanted building of 360sqm for $3 million. On a 433sqm site zoned Commercial 1, the property has a potential income of $110,000pa net plus GST and rear access plus parking via ROW.

Retail Sale, 47 Centreway, Mount Waverley

Located within the Pinewood Shopping Centre, the 140sqm shop is leased to Flight Centre and Eclipse Hair, and sold for $1.7 million to a local investor at a 4.4% yield.

Retail Sale, 485 Malvern Road, Malvern
The vacant double-storey shop of 150sqm on a 160sqm site sold for $1.68 million, with a liquor licence and permit for 120 patrons.

Retail Sale, 45 Edgewater Boulevard, Maribyrnong
An investor paid $1.59 million for the four retail shops of a combined 375sqm, which return a combined $102,047pa.

Retail Sale, 113 Gardenvale Road, Gardenvale
A local developer paid $1.63 million for the vacant 240sqm retail and office building, which sits on a 286sqm site zoned Commercial 1.

Retail Sale, 256 Whitehorse Road, Balwyn
The dual-tenanted, two-level 307sqm building traded for $2.5 million, at a 3.1% yield with two five-year leases, one of these to fashion retailer Blue Illusion.

Retail Sale, 348-350 Clayton Road, Clayton
An investor paid $4.7 million for the two-level building, which is occupied by NAB on the ground floor and a Taekwondo studio above, bringing a total of $173,000pa.

Retail Lease, 495 Chapel Street, South Yarra
Fashion retailer Sculpt Australia has leased the two-level 150sqm building after finalising a 3+3-year lease at $80,000pa net.

Retail Lease, 106 Swan Street, Richmond
A new Middle Eastern cuisine store owned by interests associated with Berties Butchers will open in the 87sqm shop, and will pay $67,500pa net on a 5+5-year deal.

Retail Lease, Shop 3A, 145 Russell Street, Melbourne
Two Birds Hair Salon is flying across the road after agreeing to pay $145,000pa gross for a shop opposite its current premises.

Specialised Asset Sale, 992 Glen Huntly Road, Caulfield South
Leased to Cabrini Hospital on a 5+5-year deal, the 652sqm medical consultancy sold for $1.58 million with a return of around $93,000pa.

Specialised Asset Sale, 236 Harvest House, Epping
An investor paid around $5.3 million for the childcare centre on a 6.5% yield. Leased to One Early Education Group until 2033, the property returns $348,000pa.

Land/Development Sale, 360 High Street, Windsor
Zoned Residential Growth, the 1,308sqm site has an apartment block of six two-bedroom units and sold for $6.6 million. It currently returns around $147,608pa and offers residential development potential.

Land/Development Sale, 936-938 Toorak Road, Camberwell
A developer paid $4.25 million for the 1,647sqm site, which has approval for a 20-apartment project.

Land/Development Sale, 73-75 Peel Street, West Melbourne
An interstate investor acquired the Mixed Use-zoned site of 246sqm for $4.4 million. It has a vacant two-level office and retail building of 306sqm.

Industrial Sale, 67-69 Licola Crescent, Dandenong South
The high-clearance warehouse is on a 4,009 sqm site and sold for $3.526 million.

Industrial Lease, 9-11 Hi-Tech Court, Croydon
Picture frames group Framers Now leased the 1,467sqm warehouse for a new manufacturing facility, and will pay $150,000pa.

Office Lease, 270 Rosslyn Street, West Melbourne
AWH, the world’s largest wool and independent cotton handler, leased the entire three-level building of 412sqm on a 5+5-year deal at $126,000 gross plus GST pa.

Office Lease, 46 Budd Street, Collingwood
Blockchain firm Centrality will make its first move across the ditch, leasing the 250sqm converted warehouse spaces at $400/sqm net.

The Franklin Collection: The Franklin Collection, a selection of commercial and retail units together with numerous car spaces at 118 Franklin Street has come to the market in a year that has seen short supply of Melbourne CBD strata opportunities.

Fitzroys is marketing The Franklin Collection on behalf of the private original builder of 118 Franklin Street, which is adjacent to the Queen Victoria Market Renewal Precinct, via Expressions of Interest closing Friday, 16 November.

Opportunities include a level 10 office, with a large terrace, that could be extended to create a penthouse (STCA) and converted for residential use; a ground floor retail space of 40sqm that is primed for a food outlet to service the burgeoning local residential population; and a self-contained first-floor suite of 152sqm with its own street entrance, and which includes a lease to a beauty parlour and spa until 2020 with five-year options.
In addition to many other smaller units, 39 secure car spaces are to be offered for sale.

“This remarkable selection of strata opportunities will go some way to matching the demand from the many investors searching for the security of investing in the CBD,” Fitzroys selling agent Alex Shumsaid.

Shum said the immediate area has been the focus of high density residential development over the past 10 years, bringing new landmarks such as Fulton Lane, EQ Tower and MY80, while numerous other high rise developments are planned or already under construction.

Franklin Street is also in the centre of Melbourne’s education precinct, close to RMIT, Melbourne University and many private college campuses. “The surge of international students into Melbourne has also led to the development of world-class accommodation facilities, the majority of which are centred around this northern CBD precinct.”

The property is also set to significantly benefit from the proposed $250 million renewal of the Queen Victoria Market and surrounds. It is adjacent to the proposed $450 million Munro site project that will comprise a 300-unit apartment tower, an 80-room hotel, car parking and a childcare facility.

Prahran Post Office sells for $13.38m: Founder of construction group Probuild, Phil Mehrten sold the former Prahran Post Office site on the corner of Greville Street and Macquarie Street for $13.38 million, having paid $9.1 million for the asset five years ago.

It is utilised as the Australasian head office of GoPro, and is also leased to steakhouse Angus & Bon and the College of Intensive Care Medicine, trading at a 4.5% yield.

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.