Weekly Wrap

Fitzroys Weekly Wrap - 22nd October 2021

Posted on 22nd October 2021

000 Retail 05

322-324 Lennox Street & 19 Botherambo Street, Richmond
Home to cake shop Hellas Cakes for more than 60 years, the 355sqm site sold for around $4 million to a local owner occupier. The site has a 2-storey brick building with vacant retail space and an office above, and a single-level weatherboard house, all on 1 title and with a total building area of 320sqm.

899 Burke Road, Camberwell

The vacant 2-level, 197sqm former milk bar and residence building on 172sqm opposite Camberwell train station sold for the first time in 35 years, for $1.415 million.

4 Illowa Street, Malvern East

The 2-level 160sqm building sold to a local investor for $800,000, on 3.75% yield. It returns $30,000pa plus outgoings and GST.

Shop 2, 13 West Eramosa Road, Somerville

The 69sqm shop home to longstanding tenant Silvertail Fish & Chips sold for $570,000 at a 5.1% yield. It has a 3+3-year lease from 2020 returning $28,897 plus outgoings and GST.

Shop 3, 13 West Eramosa Road, Somerville

The 84sqm shop leased to Johnny Boys pizza store sold for $750,000, on a 5.4% yield.
The 5+5+5+5-year lease began in 2018 and returns $41,130pa plus outgoings.

86 Union Street, Malvern

A beauty salon leased the 44sqm space at $600/sqm net.

000 Offices 05

343 Little Collins Street, Melbourne
An investor bought the 208sqm strata office on half of level 11 and the 164sqm rooftop space for $2.14 million, at a 4.9% yield. It is leased to the Clinton Institute on a 5-year lease returning $105,400pa. The buyer intends to develop the rooftop in the future.

Level 1, 362 Little Bourke Street, Melbourne

The vacant 352sqm office and residence within the circa-1889 Campton House building sold for around $3 million. It includes 3 secure ground floor parking spaces.

52 Collins Street, Melbourne

Kane Construction leased 275sqm on level 3 of the Dexus-owned building at $700/sqm.

000Industrial 05

7 Kirkdale Street, Brunswick East
A local buyer bought the 412sqm Industrial 3-zoned site, with a 160sqm storage shed, for $1.16 million.

6 Holmwood Road, Tottenham, VIC

A private investor bought the 1,450sqm office and warehouse on a 3,158sqm site for $2.9 million.

52-54 Export, Brooklyn

A private investor bought the 1,100sqm office and warehouse on a 3,292sqm site for around $2.44 million.

13 Arctic Court, Keysborough

Hydraulic equipment supplier Hydraulink Australia leased the 735sqm office and warehouse for 5 years at $120/sqm.

000 Development 05

43 Riversdale Road, Hawthorn
A developer paid $9.7 million for the 1,698sqm corner site, which is permitted for 31 2- and 3-bedroom apartments.

000 Talking Points 05

Melbourne Developers Pick Up Prized Regional Opportunities
More than 1.67ha of land directly opposite The Village Warralily Shopping Centre has been sold to Melbourne-based developers looking to take advantage of the massive growth of the Geelong region.

Fitzroys agents Chris James, David Bourke and Shawn Luo sold Lots 13, 14 and 15 Central Boulevard, Armstrong Creek, via an Expressions of Interest campaign that generated more than 100 enquiries and 9 offers to buy from developers across the country.
Zoned Commercial 1, the lots were offered separately or in one line.

Prominent developer Oreana Property Group bought Lots 14 and 15 to create a 12,737sqm parcel of land at the corner of Barwon Heads Road, which offers exposure to 23,000 passing vehicles each day.

Another developer bought the 4,000sqm Lot 13 fronting Central Boulevard.

The properties traded at a land rate of around $550/sqm. Bourke said they have been earmarked by the new owners for large format retail and commercial developments.

“The purchasers are looking to take advantage of the growth of Armstrong Creek, which is tipped to accommodate the bulk of growth in Greater Geelong,” Bourke said, adding that the region continues to attract investment from national, listed and private groups alike, and continues to be a focus at both state and local government levels.

Opposite is Village Warralily Shopping Centre, anchored by a full-line Woolworths supermarket and BWS, while the land also adjoins future McDonald’s, 7-Eleven and Aldi supermarket sites.

Armstrong Creek is one of Victoria’s fastest growing suburbs with an annual growth rate of 7.25%, according to demographics research house forecast.id, and has a projected population of 60,000-plus once fully developed.

Major developers ID_Land and Central Equity have recently bought land tracts for new master-planned communities in Armstrong Creek, and the $1 billion, 40ha Armstrong Creek Town Centre opened in September last year and has just been sold to ASX-listed Home Consortium’s Daily Needs Trust.

Armstrong Creek is also expected to be home to 22,000 jobs, with a focus on technology and synergies with Deakin University, as well as health and education community facilities.

Meanwhile, the Regional Australia Institute and Commonwealth Bank’s Regional Movers Index showed migration from capital cities to the regions grew 11% over 2020/21, with the Greater Geelong area receiving a 26% increase in capital city movers during the period. The region also saw approvals for new housing up 48%.

James said the competitive Expressions of Interest process demonstrated the pent-up demand for retail and commercial development sites in growth regions, at a time in which large-format and convenience have outperformed other retail segments.

“With Australians spending more time at home, there has been more money and built-up savings put towards interior design, furniture, entertainment, and at-home work spaces.”

“Large format retail centres open for trade presented opportunities to shop at easily- accessible sites with ample on-site parking, and larger spaces that some have found more comfortable to visit during COVID.”

Oreana Property Group is familiar to the area, recently lodging new plans for a $10.3 million residential community in Lara. It has also just picked up neighbouring sites on Toorak Road, South Yarra, including commercial complex South Yarra Square, which it will look to transform into a luxury hotel and wellness centre, and a row of Tudor buildings next to South Yarra train station with short-term leases.

Freestanding Woolworths Sells at 2.46% Yield
A freestanding Woolworths supermarket in Blackburn South has been bought by Emmanuel Zahra’s Westrent Properties for $29.3 million, on a yield of 2.46%.

The Kluger family was the vendor of the 3,495sqm supermarket at 117-127 Canterbury Road, which is on a 7,298sqm site with 145 parking spaces.

Woolworths has 9 years remaining on its lease, with options, returning $723,000pa net.

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.