Weekly Wrap

Fitzroys Weekly Wrap - 9th November 2018

Posted on 09th November 2018

Puckle St 15

Retail Sale, 286 Wellington Street, Collingwood
The two-storey shop and dwelling of 280sqm sold for $1.4 million, with a monthly tenancy to Astroboyracer. It is on a Neighbourhood Residential-zoned site of 205sqm.

Retail Sale, Lots 1G & 2G, 398 Elizabeth Street, Melbourne
The two lots at the base of the 62-storey Empire Apartments building changed hands for $9.35 million. They have a combined building area of 303sqm and sold at a 4.5% yield.

Retail Lease, 589 Chapel Street, South Yarra

Asian fashion operator Momo Dress leased the boutique space of around 50sqm at $60,000pa net.

Retail Lease, 63 Toorak Road, South Yarra
An experienced florist has taken up the 51sqm space and will pay $960/sqm gross.

Specialised Asset Sale, Suite 2, 195-197 Whitehorse Road, Blackburn
The 263sqm suite is within a medical centre and sold for $1.878 million at a 5.3% yield, with a new seven-year lease plus options to 2035.

Land/Development Sale, 12 Darling Street, South Yarra
Zoned General Residential, the 668sqm site has a block of four two-bedroom apartments and 15.2m frontage, and sold for $5.1 million. It currently returns $112,368pa.

Land/Development Sale, 366-370 Spencer Street, West Melbourne
A developer paid $3.815 million for the 345sqm site, which is zoned Mixed Use and has a 14m frontage. It currently has a single-level commercial building with a short-term lease.

Office Lease, 255 Drummond Street, Carlton
Three office suites and six car spaces sold for $1.7 million. They included the 116sqm vacant Suite 65; Suite 69-70 of 255sqm with a balcony and a lease bringing $61,867pa plus outgoings and GST. The parking spaces sold with vacant possession.

Office Lease, 11 Queens Road, Melbourne
Construction group Seymour Whyte leased the 300sqm fitted space at $450/sqm gross from owner Vantage.

Office Lease, 293 Barkly Street, Brunswick
Hip V. Hype Collective inked a 5+5-year lease over the 204sqm former grocery store space at $75,000pa, which it will use as a creative office.

Industrial Sale, 32-34 & 36-38 Cook Street, Port Melbourne
Private investors traded the 4,413sqm Fishermans Bend land parcel, zoned Industrial 1, for $6.4 million.

Industrial Sale, 7-11 Ceylon Street, Nunawading
An investor paid $3.5 million for the 1,200sqm office and warehouse building with laboratory space, at a 4.7% yield.

Industrial Lease, 20 Logis Boulevard, Dandenong
Chobhani Yoghurt leased the 1,952sqm facility, which includes a two-level open plan office, at $176,024pa net. It is on a 3,039sqm site and includes 29 on-site parking spaces.

Industrial Lease, 7 Fellowes Court, Tullamarine
Chemform leased the 775sqm building, on a 995sqm site, for warehousing and storage of cleaning products on a 3+3-year deal, at $58,000pa net.

New price benchmark set for St Kilda Road: Beville Property Group has offloaded the nine-level 509 St Kilda Road office tower for $163 million to private investor Michael Xie, with the transaction setting a new sale price record for the inner-city boulevard.

The 19,506sqm tower counts the federal government, Fuji Xerox and life insurer AIA among its tenants, and is on a 6,070sqm block opposite Fawkner Park.

It traded at a 4.96% yield, and the significant uplift in value – Beville bought the tower for circa $90 million just four years ago – is the latest reflection of the precinct’s popularity among local and offshore investors.

Several groups have turned sizable profits in string of transactions stretching back to the latter part of 2017. A syndicate overseen by Newmark Capital sold the 19,500sqm A-grade tower a 417 St Kilda Road one year ago for the previous record price of $144.4 million, to Singaporean fund manager Mapletree, having paid $64 million five years earlier for the building.

Perth based syndicate Lester Group sold 324 St Kilda Road for $42 million, four years after paying $22 million for it. That followed Chip Eng Seng selling the 11-storey, 10,459sqm building at number 420 for $68.84 million, some $23.56 million more than its 2013 acquisition price, while Lian Beng Group and KSH Holdings fetched $34 million for number 596, less than two years after they paid $25 million.

Other sales have included a joint venture between Roxy-Pacific and Tong Eng Group’s Teo Tong Lim acquiring 312 St Kilda Road from the Myer family for almost $77 million, and more recently, Abacus and Wing Tai teamed up to take 464 St Kilda Road for $95.38 million.

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.