Retail Sale, 635 Burwood Road, Hawthorn East
A local investor paid $2.525 million at a 4% yield for the double-storey corner building of 4455 area ? sqm in Auburn Village. On a 257sqm site with three street frontages, it has a ground floor retail and showroom space with rear workshop, and a three-bedroom converted warehouse residence above.
Retail Sale, 114 Main Street, Croydon
Private investors traded the multi-tenanted building, leased to the Australian Red Cross on the ground floor, for $1.605 million. Zoned Commercial 1, the 298sqm site has a two-level building of 426sqm with first floor office suites tenanted by Croydon Camera House and a private business, and sold at a 5.3% blended yield.
Retail Sale, 227 Pakenham Street, Echuca
A Bendigo investor acquired the single-storey, double-fronted Australia Post building of 294sqm for $1.25 million, on a 6.9% yield with a five-year lease returning $88,056pa net. The Commercial 1-zoned site encompasses 440sqm.
Retail Lease, 282-284 Brunswick Street, Fitzroy
Liquorland will open up at the 136sqm shop on the busy corner of Johnston Street after signing a five-year lease at $75,000pa.
Retail Lease, 195 Exhibition Street, Melbourne
GO Noodle House signed a five-year deal at circa $200,000pa for the 110sqm shop.
Retail Lease, 87 Little Bourke Street, Melbourne
Tinker Tailor Bar will open its first venue, agreeing to a five-year lease over the 95sqm CBD space at around $95,000pa.
Office Sale, 352 Bell Street, Preston
The 183sqm offices of Victorian Labor MP Nazih Elasmar sold for $1.14 million at a 4.89% yield, with an 8+4+4-year lease to the state.
Office Lease, Level 1, 310 King Street, Melbourne
The Melbourne Education Institute leased 560sqm at $550/sqm gross after the owners pre-emptively fitted and obtained 9B certification for the space.
Office Lease, 182 Stawell Street, Richmond
Liven signed a three-year lease at $500 /sqm gross for the 550sqm suite.
Specialised Asset Sale, 161-189 Ogilvie Avenue, Echuca
A private Victorian investor paid $7.5 million for the recently constructed Hungry Jack’s and United Petroleum service station site of 5,240sqm. The sale price reflected a 6.7% yield, with both tenants holding 12-year net leases until 2028 with a current combined return of $506,000pa.
Specialised Asset Lease, 1204 High Street, Armadale
International funeral services firm InvoCare leased the 110sqm space at $75,000pa.
Specialised Asset Lease, 96-106 Greville Street, Prahran
Next Practice Health leased the 240sqm ground floor space of the former Station Hotel site at $240,000pa.
Industrial Sale, 11-15 Albert Street, Richmond
Currently utilised as a gym, the 1,132sqm warehouse and office property sold for $8.66 million, with a holding income of $146,676pa. The 749sqm site has three street frontages and development potential.
Industrial Sale, 4 Healey Road, Dandenong South
Osprey Property Group acquired the manufacturing facility of Aware Environmental Group in a sale and leaseback deal for $8.3 million. Zoned Industrial 1, the 1.8-hectare site has a total building area of 10,914sqm and traded with an initial five-year lease.
Industrial Sale, 172A Perry Street, Fairfield
The food factory of 495sqm sold for $1.15 million at a 4.6% yield. On a 635sqm site, it is leased until September 2020 with options and returns $53,045pa net plus GST.
Industrial Sale, 117 Frankston Dandenong Road, Dandenong South
The CNH Industrial facility of 2,254sqm, on an 8,000sqm site, sold for around $4.5 million at a 6.6% yield with one-and-a-half years remaining on the lease.
Industrial Sale, 148-150 Cochranes Road, Moorabbin
The 1,450sqm warehouse property sold for circa $2.5 million.
Industrial Lease, 40 Glenbarry Road, Glenbarry
A local distributor sealed a four-year lease over 4,026sqm across Buildings A and B at 40 Glenbarry Road at $250,000 per annum net
King Street succession plans take next step: An investor has secured the five-level retail and office building at 26-32 King Street in the Melbourne CBD for $11.98 million, fending off strong competition including the Grollos, co-owners of the nearby Rialto Tower who were looking to add to their stretch of King Street real estate.
On a 1,200sqm site offering future development potential, number 26-32 is leased to 7-Eleven on the ground floor and multiple tenants in the office space above, for a combined net return of $352,000pa. The sale price reflected a 2.9% yield. It last changed hands in 2010 for $5.1 million.
The Grollos own the properties running on the eastern side of King Street from Flinders Lane up to Collins Street, having most recently picked up the Inflation nightclub site at 54-60 King Street earlier this year for $17 million. Hospitality and hotel conversions for much of its properties along the infamous precinct have been publicly floated by the Grollos, which along with the Quincy Hotel development at 33 King Street – itself recently sold off to Indian giant InterGlobe for $91.3 million – would further its evolution.
Major players favouring CBD office projects: Further up King Street, Charter Hall has acquired the corner site at 555 Collins Street for $140 million from Singapore’s Fragrance Group, via its Charter Hall Prime Office Fund.
The acquisition means the listed player now has a 4,620 sqm corner block fronting King Street, having added to an existing landholding on King Street. It will look to redevelop the site for commercial use after Fragrance Group had spent a year in the pre-sales phase for a 625-unit residential tower on the site.
Charter Hall’s move marks another office play in place of a planned CBD residential tower in short time. In September, Mirvac picked up the Australian Federal Police headquarters at 383 La Trobe Street for $122 million, with intentions to develop an A-grade commercial tower of 40,000sqm rather than take on plans for a distinctive apartment building drawn up by renowned French architect Jean Nouvel.
They add to the strong pipeline of major commercial developments throughout the CBD’s west, including the future Victoria Police Headquarters at 311 Spencer Street, Collins Arch at 447 Collins Street, and the nearby Olderfleet development.
Meanwhile, another Singaporean player, Figtree Holdings, has just offloaded 303 La Trobe Street for $35 million, despite having sold 97% of a 44-storey mixed-use apartment project on the site.
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.