Weekly Wrap

Fitzroys Weekly Wrap - 8th October 2021

Posted on 08th October 2021

000 Retail 05

101-107 Horne Street, Sunbury
The 4,687sqm site leased to the Sunbury Ford dealership sold for $9.61 million, at a 5.2% yield. It has a 1,624sqm showroom and an 83m frontage, and has a brand new 15-year lease plus options currently returning $500,000pa plus GST.

210 Maidstone Street, Altona

The 7-Eleven service station property sold for around $6.6 million on a 4.6% yield. Completed in 2017, it is on a 3,631sqm corner site and has a 15-year lease to 7-Eleven’s head office that returns $316,446pa net.

39 Melville Road, Brunswick West

The 150sqm building on a 495sqm site sold to a local owner occupier for $2 million. The building comprises 2 vacant retail spaces and tenanted residential at the rear.

Lot 2/57 Smythe Street, Benalla

The 91sqm shop home to a longstanding bakery sold for $905,000. It has a new 5+5-year lease with 3% annual increases and currently returns $42,024pa plus GST net.

592 Station Street, Box Hill

A butcher leased the 150sqm shop on a 5+5+5-year term at $118,000pa net.

1109 Whitehorse Road, Box Hill

Medical and homecare equipment supplier Independent Living specialists leased the 324sqm showroom for 5 years at $80,000pa gross.

000 Offices 05

458 Swanston Street, Melbourne
The 146sqm half-floor on level 1 sold for a $980,000 with a lease running until October.

Suite 7, 43-51 Ringwood Street, Ringwood

The 79sqm office suite opposite Eastland shopping centre sold for $605,000 on a 5.5% yield, with a new 3-year lease to Echo Australia Inc. returning $33,034pa net with 3% annual increases.

1-9 Moreland Road, Coburg

Force IT leased the 394sqm office and showroom space for 5 years at $120,000pa.

000Industrial 05

594-598 Edgars Road, Epping
Woodworking tools and supplies store Timbecon bought the 3,650sqm showroom and warehouse building over 2 industrial lots for $9.416 million. The vendor was developer Maice Constructors.

19 Pascal Road, Seaford

The 7,828sqm industrial property sold for $7 million at a 3.98% yield. It comprises 2 units with a combined 4,643sqm of office and warehouse space, and 63 on-site parking spaces.

24 Jersey Drive, Epping

Direct Mail Corporation leased the new 5,346sqm distribution centre for 5 years at $80/sqm net.

000 Development 05

195-205 Vineyard Road, Sunbury
Interests associated with the founders of the Henley building group bought the 11.37ha site for $14.55 million. It is within the Sunbury South Precinct Structure Plan and can deliver between 163 and 190 lots. The vendor was a private syndicate that bought the land in 2003 for $391,000.

000 Specialised 05

305 Warrigal Road, Cheltenham
The 1,259sqm corner site sold for $3.83 million with a new 10+10+10-year lease to Kingston Funerals, returning $144,625pa plus GST.

51-53 Surf Coast Highway, Torquay

The home of Bells Beach Backpackers sold for $2.15 million to a private investor, on a 4.1% yield. The 1,463sqm site is zoned General Residential and has a 2-level building. It sold with a passing income of around $90,000pa until September 2023.

000 Talking Points 05

Collins Street Prestige Pulls Retailers
Retailers are looking beyond the COVID period and taking up prized Collins Street spaces in anticipation of the reopening of Melbourne’s famed CBD.

Fitzroys Associate Director, James Lockwood has leased 243 Collins Street to jewellers Artelia, which is making the addition to its Westfield Fountain Gate shopping centre site - some 50km away - with a site in the CBD, and on a long 7+5-year term.

“Whilst the CBD is currently difficult, businesses are looking to next year,” Lockwood said.
“Retailers are taking the opportunity to secure a quality Collins Street address in preparation for 2022 as the city reopens.

“History shows that when things pick up, getting these spaces is extremely difficult.”

The 95sqm space is on the corner of Manchester Lane, home to a number of edgy fashion outlets and which provides a direct link to the historic rag trade precinct of Flinders Lane.

“As our brand has developed, we have been looking for opportunities to reimagine European-style interior design,” says Maria Ulas, who runs the Artelia business with husband Roberto.

“That would require having our own shopfront, and where better than Collins Street?”

Artelia’s fit-out will see customers served over a marble bar, with a lounge area serving champagne crowned by a marble fireplace being imported from Italy – all under 8 chandeliers.
Major lender NAB is optimising its branch presence on Collins Street, opening a new- format space within the Cbus Property’s $1.25 billion Collins Arch project at 447 Collins Street. Fitzroys leases the retail component of Collins Arch along with Cushman & Wakefield.

Following NAB’s relocation, Fitzroys is currently marketing an amazing Art Deco space over 2 levels at 460 Collins Street, at the corner of William Street. The ultra-rare offering comprises a high-clearance 413sqm ground level space together with a 126sqm basement level. The space retains the heritage features from the original 1930s bank chamber.

In the city’s Paris end, Fitzroys recently leased 15 Collins Street to Austria-based Wolford. The brand has been long-established in Australia and fitted-out the 80sqm shop to showcase the just-released 2021 international store format.

Sydney Buyer Swoops on Legal Precinct Building
Also in the Melbourne CBD, the Lensworth House mixed-use building in the legal precinct has sold to a Sydney-based investor for around $10 million.

The 4-level, 1,019sqm building at 174-176 Queen Street has restaurant Nirankar occupying the ground floor, while the offices above are vacant.

The vendors were the Newman family, behind cabaret venues Tikki & John’s Music Hall and Dracula’s. They bought the property in 2000 for $2.95 million.

The new owner plans to refurbish and lease out the building.

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.