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.