Shop 6, 300 Toorak Road, South Yarra
A local syndicate bought the 232sqm strata-titled property for $2.825 million. The property is within LK Property Group’s Gisele project and has a 10-year lease plus options to medical group My Clinic.
190-198 Wellington Road, Clayton
The 2,473sqm petrol station corner site sold for $4.915 million at a 4.55% net yield. EG Group, trading as Caltex and a Woolworths convenience centre, has a lease until 2026 with 4 further 5-year options returning $223,463pa net plus GST.
110-112 Smith Street, Collingwood
2 shops in a 329sqm building, on a 379sqm corner site opposite the Grace Darling Hotel, sold for $4.79 million at a 2.88% yield. Tenants include furniture, homewares and apparel retailer Oliver Birch and an optometrist.
260-262 Maroondah Highway, Healesville
A local investor bought the row of 4 adjoining, fully-leased shops for $3.97 million, at a 4.5% yield. Zoned Commercial 1, the property is on a 1,250sqm site over 2 titles.
21-27 High Street, Cobram
The Kmart-leased property sold for $2.825 million, at a 6.58% yield. Kmart’s 5-year lease runs to March 2024 and includes options to 2039, returning $186,000pa plus GST. The 1,472sqm site is zoned Commercial 1.
28 Harrington Square, Altona
The 60sqm space leased to takeaway shop Piggy Smalls sold for $760,000 at a 4.07% yield. It has a 7+7+7-year lease returning $30,900 plus GST.
123 Bakers Road, Coburg
Gym operator Valhalla Athletic leased the 820sqm building for 5 years at around $100/sqm.
52-58 Chetwynd Street, West Melbourne
The Catholic Church’s school arm, the Melbourne Archdiocese Catholic Schools, bought the 1,455sqm building on a 1,000sqm site for around $10 million. It will use the property to expand the campus of Simons Catholic College across the road.
1A Somerset Street, Richmond
The vacant 2-level 223sqm building sold to an owner occupier for $1.425 million.
1/4 Rocklea Drive, Port Melbourne
The 225 sqm office unit sold for $1.025 million on a 5.38% yield, with a lease to Tangible Technologies returning $55,170pa net.
8 Bond Street, Abbotsford
The vacant 280sqm brick warehouse on a 330sqm Industrial 1-zoned site sold for $2.05 million.
8/17 Hogan Court, Pakenham
The 210sqm office warehouse unit sold for $325,000, with a lease until February 2023 paying $15,172pa plus outgoings and GST.
104 and 106-110 Albert Street, Brunswick East
Music institution Found Sound and an Organic Wine retailer leased the warehouse building just off Lygon Street. Found Sound leased 106-110 Albert Street at $164,000pa and Organic Wine leased number 104 at $71,000pa. Both deals are for 5+5-year terms.
1342 High Street Road, Wantirna South
The childcare centre property sold for $12.77 million at a 4.4% yield. It has a new 15-year lease to Advance Childcare plus options, currently returning $562,380pa net plus GST, and is on a 2,461sqm corner site.
81 Grange Road, Glen Huntly
An offshore investor paid $9.51 million at a 4.5% yield for the childcare centre property leased to Buddies Early Learning.
30 Fulton Drive, Derrimut
A local developer bought the vacant 2.02ha infill site zoned General Residential 4 for $5.64 million.
Another Cremorne Site Set for Development
Developer Vicland has bought a 3,538sqm dual-fronted Cremorne site for $53.5 million in further activity along the eastern city fringe market.
The 31-53 Cremorne Street property has potential for a 10-level office building development. It currently has several leases with termination clauses and returning $1.3 million per annum.
The vendor was Blazer Clothing founder Peter Murray, who put together the site over multiple acquisitions. The most recent was the 761sqm 33 Cremorne Street site, bought in 2017 for $10 million.
Vicland recently sold its newly developed and fully-leased 6,300sqm, 9-level 11 Wilson Street office tower in South Yarra to German fund manager Real I.S. for $75 million, at a 4.5% yield. It has also gained a permit for a $300 million office and retail project at 489-505 Toorak Road, Toorak, for which it paid $80 million 2 years ago.
Tenants in the tech-oriented Cremorne and Richmond market include Seek, Uber, Domain, Tesla, and Disney, among others. Australia Post recently announced that it will move its headquarters from the CBD to Richmond, signing a deal with Charter Hall to anchor a future $130 million, 13-storey office building to be constructed at 480 Swan Street, owned by the Agosta family.
Next door, Riverlee has partnered up with Bamfa Properties, which is linked to the Agosta family, to speculatively build a $190 million, 13-level commercial tower.
Bamfa Nominees recently bought a 2,322sqm Burnley office building site with short-term leases at 182-184 Stawell Street, while Salta has lodged plans for a $50 million office building at nearby Barkly Avenue, and along with Abacus Property Group secured flexible workspace provider Hub Australia for a new 3,000sqm venue at their 459-471 Church Street development in Richmond.
Woolworths Sells for $45.7m
A freestanding Woolworths supermarket property has sold for $45.7 million at a 2.99% yield.
The 2,848sqm building was refurbished in 2013, and the supermarket recently undertook a $3 million full internal re-fit.
Woolworths’ 20-year lease runs to 2033 and includes 8 options of 5 years each, returning more than $1.365 million pa. There is also a BWS liquor tenancy and 87 on-site car parks, with more parking at a council car park at the rear of the property.
Recently in the eastern suburbs, a 3,495sqm Woolworths freehold at 117-235 Canterbury Road, Blackburn South sold for $29.3 million to Westrent Properties at a 2.46% yield with 9 years remaining on its lease, while the new-format Coles supermarket at 689-699 Glenferrie Road, Hawthorn sold for $24 million, at a 1.9% yield.
ISPT Buys CFA HQ Building
Super fund-backed investor ISPT has acquired the Country Fire Authority’s headquarters building in Burwood East for $35.8 million.
The 1990s-built 3-storey building, located on a 5,484sqm site within the Tally Ho Business Park, was refurbished earlier this year and sold on a sub-4.5% yield, with a 9.25-year weighted average lease expiry. It is fully leased to the CFA and a Telstra office.
Vendors, Singapore-based TE Capital Partners, paid $18.08 million for the 8 Lakeside Drive property 3 years ago, when it had a WALE of less than 2.5 years.
TE Capital Partners last year bought the 350 Queen Street office tower in Melbourne’s CBD at an initial yield of 4.8%, with plans to spend $10 million on upgrading the lobby, food and beverage and retail, and adding end-of-trip facilities.
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.