Weekly Wrap

Fitzroys Weekly Wrap - 15th October 2021

Posted on 14th October 2021

000 Retail 05

31 Wray Crescent, Mount Evelyn
A local GP paid $1.01 million for the 151sqm building, on a 783sqm site zoned Commercial 1 with on-site parking. They will make improvements before operating their clinic from the property.

1213-1217 High Street, Armadale
The 2-level, 674sqm building on a 548sqm site sold for $10 million, with just over 12 months remaining on its lease to a real estate agency that returns $370,920pa net. The property has an 18m frontage, rear laneway access and 12 on-site undercover parking spaces.

18-20 & 17 Hancock Street & Clifton Springs Road, Drysdale

The fully-leased retail complex on a 1,010sqm site sold for $4.1 million. Tenants include Commonwealth Bank, Australia Post, a library, discount retail, hairdresser, fish and chip shop and Pilates studio, for a combined $228,242pa net return.

52 Morrah Street, Parkville

The corner shop and dwelling home to the historic Parkville Store – which has traded since opening in 1884 – sold for $2.85 million. Café Piccolina, trading from the 82sqm retail space, is managed by the operators of nearby Naughtons Hotel on Royal Parade and has a 4-year lease returning $64,890pa. The 109sqm residence brings $40,000pa.

4/85 Belleview Drive, Sunbury

The 125sqm shop leased to Snappys Pizza and Kebab and located within Jackson’s Hill Estate sold for $1.025 million. It returns $52,143pa plus GST from a 7-year lease running until November 2027 with a further 7-year option.

428 Burwood Road, Hawthorn

The 2-level 251sqm building sold for $1,405,888 at a 3.75% net yield, with a lease to Shisha Nights returning $58,000pa.

000 Offices 05

135-139 Leicester Street, Carlton
A local investor paid $5.5 million for the 296sqm office and warehouse building, which covers the entire property, and was offered with a short-term lease.

60 Collins Street, Melbourne

Serco Citizen Services signed a 2-year lease for 733sqm on Level 10 within the Dexus-owned building, and will pay $700/sqm.

000Industrial 05

27 Constance Court, Epping
6 office and warehouse units ranging between 300sqm and 435sqm have sold for prices from $670,000 to $1.04 million, equating to building rates of $2,233/sqm to $2,390/sqm.

100 New Street, Ringwood

Plumbing supplies business Fluidmaster Australia moved to a larger premises within the industrial estate, leasing a 1,217sqm office and warehouse at $108/sqm net. Another existing tenant in the estate, Haron International, leased a 595sqm unit for additional warehouse space for 3 years at $114/sqm.

2F Cochrane Street, Mitcham

A local clothing brand requiring additional warehouse and distribution space leased the 1,700sqm facility at $94/sqm net.

000 Development 05

60 Gorge Road, South Morang
A local developer paid $6.42 million for the 13,840sqm site. Zoned General Residential 5, it has a permit for a 36-lot subdivision.

000 Specialised 05

14-24 Pearl Street, Northcote
Aged care home operator Blue Cross sold the freehold of a facility that it closed in March to an investor for around $11 million. The 75-bed facility is on a 2,895sqm site.

14 Broad Oak Drive, Cranborne East

The 2-storey medical centre property, together with the GP and dental clinic businesses operating from it, sold for $2.77 million. The 1,286sqm site has a permit for 4 full-time practitioners and 14 on-site parking spaces.

000 Talking Points 05

Melbourne CBD Office Building Sells
An Indonesia-based buyer paid $45.5 million for the fully-leased CBD office building at 235 Queen Street on a 3.99% yield.

Known as Melbourne Chambers, the 11-storey C-grade building has a number of its leases up for renewal in the short-term. The current rent is over $1.81 million pa. Tenants include education, legal and co-working operators.

The vendors were the Bardas family, founders of the Sportscraft clothing chain, who bought the building in 2015 for $25.5 million.

Also in the CBD, Singaporean investor HThree City Australia bought the 11-storey 446 Collins Street office tower last month for $72.625 million from Vantage Property Investments, on a fully-leased yield of 4.3%.

Zagame Family Sells Another Gaming Venue
The Zagame family has continued its selldown of large-format gaming venues, divesting the Boronia Hotel for $24 million to a private investor from Brisbane.

The venue includes 80 gaming machines and sold on 5% yield.

It follows Zagame Corporation selling the Edwardes Lake Hotel in Reservoir for $28 million last month to ASX-listed Hotel Property Investments, also at 5%.

Both venues are leased to IPR Hotels, which acquired 60-year leaseholds to the venues and 2 other former Zagame hotels in Berwick and Ballarat from the Zagame Corporation for $99 million earlier this year.

New Intermodal Freight Terminal
Salta Properties will begin construction of a $155 million intermodal freight terminal at its Nexus Dandenong South industrial estate before the end of this year, after signing an agreement with the Victorian government.

The fully-automated terminal will have capacity for handling up to 560,000 shipping containers each year. It will connect directly to the Port of Melbourne’s $125 million on-dock rail project via a new track coming off the Cranbourne train line. Trucks will also have dedicated lanes for loading and unloading.
Salta will put $155 million towards construct of the terminal while the Victorian and federal governments will jointly invest $28 million for the 800-metre rail spur track.

Construction will take about 2 years.
The project is part of the broader Victorian Port Rail Shuttle Network, which intends to cut 25% from freight transport costs, reduce congestion at the port, and take 175,000 truck movements off suburban roads each year.

The Victorian and federal governments have identified potential sites at Truganina and at Beveridge for the Melbourne Intermodal Terminal, which would connect to the 1,700km Inland Rail freight network between Melbourne and Brisbane that is due for completion in 2026.

Australia’s 1st Toyota Dealership Sells to Developer
The home of Australia’s 1st Toyota dealership, at the corner of Chapel and Grosvenor streets and Brighton Road, has sold to a Chinese-backed developer for $23.5 million.

More recently used as an Australia Post distribution centre, the 3,469sqm site had been owned by the Thurston family for almost 50 years. The local planning scheme allows for up to 5 or 6 levels.

Australia Post’s lease runs to August 2024.
Meanwhile, the owner of one of Australia’s largest Mazda dealerships has bought the 8,878sqm Ringwood site they operate from, for $15 million.

The Coopersmith Group, which developed the showroom at 391 Maroondah Highway, bought the site in 1981 for $400,000 from the Patterson Cheney Holden Group.

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.