1126 Toorak Road, Camberwell
The vacant 150sqm shop and dwelling building on a 251sqm site sold for $1.09 million. The new owners will renovate the property.
7 Thomas Mitchell Drive, Wodonga
An investor bought the fully-leased 2,545sqm retail complex for $5.665 million at a 7.1% yield. It is on a 3,747sqm corner site across 3 titles and returns $402,200pa plus GST
555B Chapel Street, South Yarra
A local investor paid $2.645 million for the vacant 154sqm retail and office building, on a 137sqm site zoned Activity Centre with on-site parking.
198 Glenferrie Road, Malvern
The 2-level, 189sqm building on a 165sqm site sold for $2.01 million, at a 3.57% yield. Pizza888 has a 5-year lease plus options to 2035.
438 Neerim Road, Carnegie
A local investor bought the 137sqm shop and dwelling for $740,000. It has a 5-year lease to Bendigo Bank on the ground floor returning $16,305pa net and a vacant 2-bedroom residence above.
34 Garden Street, South Yarra
An investor bought the two storey office building at auction for $7,700,000. Leased to window furnishing company, Lovelight, the property sold on a yield of 2.47% and a land rate of $16,450 per sqm.
163-171 Clarendon Street, South Melbourne
An owner-occupier paid $8.05 million for the 2-level 986sqm building with 10 on-site parking spaces. It is on a 657sqm corner site zoned Commercial 1 and is next door to Hickory’s new Market Lane office development.
10-18 Chifley Drive, Preston
A developer bought the vacant 1.91ha site for $17.5 million. Zoned Industrial 3, it will be used for a multi-unit warehouse development. The vendor was Bruno Grollo, who had owned the property for about 50 years. It had been used to support Grollo family construction work.
447 and 455 Boundary Road, Truganina
Construction firm AJL Heavy Equipment and industrial equipment specialist Case Victoria signed respective 7-year leases for the properties, both of which comprise a 2,500sqm warehouse on a 10,000sqm site. They will both pay about $450,000pa plus GST.
701-703, 705 & 707 Whitehorse Road, Mont Albert
A private developer paid $8.05 million for the combined 1,392sqm site, which is zoned Mixed Use and has 34m of frontage.
484-486 Victoria Street, Brunswick West
An investor bought the purpose-built childcare centre for $13.16 million, at a 4.09% yield. Only About Children has a 15+10+10-year lease over the 1,836sqm triple-fronted site, returning $538,290pa plus GST net.
Premier Opportunity to Invest in Epping Growth Story Snapped Up in Short Time
A showroom and logistics island site in Epping has been sold 5 days ahead of the Expressions of Interest campaign closing, after investors and landbankers hotly pursued the premier opportunity to be part of the suburb’s incredible growth story.
Fitzroys’ Paul Burns and Chris James sold 88 and 100 Cooper Street, Epping which had been offered in-one-line or individually, to a single buyer.
The 1.35-hectare site has a 470-metre street frontage and is directly opposite the Pacific Epping regional shopping centre and in the heart of Epping Central, the priority investment area within the City of Whittlesea.
“We had a huge response from buyers with multiple bids made before the campaign’s scheduled close. The vendor’s instruction was to give interested parties a chance to bid, then to close it out. The buyer signed an unconditional contract 5 days before the close of EOI,” Burns said.
“Epping is undergoing a generational boom and has emerged as the 'CBD of the north’, with Cooper Street becoming the region’s major commercial hub.
“The property presented as the ultimate land bank - an outstanding, secure investment opportunity in the here and now while presenting huge longer-term potential, with Council encouraging high-density commercial and residential development by way of the site’s Activity Centre zoning.
“Location is a timeless fundamental, and the COVID period has seen intensified demand for secure assets in locations with excellent growth prospects.”
The 9,254sqm site at 100 Cooper Street has a new 10-year lease from July 2021 to Jowett Motor Group, operating as Northern Honda. The improvements are a part-new and part fully-refurbished purpose-built automotive dealership and logistics warehouse totalling 3,860sqm. Annual net return is approximately $730,000.
Northern Honda is the consolidation of a number of Honda dealerships, with the logistics component distributing Honda parts to the majority of metropolitan Melbourne.
88 Cooper Street comprises a modern 1,721sqm 3-unit showroom on a 4,228sqm site with associated parking. It is fully leased to long-term tenants Burson (part of ASX-listed Bapcor Limited), GPC Asia Pacific’s NAPA and popular supermarket chain MKS Spices’n’Things, returning $360,000 net. The 2005-constructed building was recently upgraded and has a 4.5-year WALE.
Combined, the entire property returns approximately $1.1 million per annum net, with an 8.1-year WALE. The buildings have been upgraded at a total cost of circa $4.5 million.
In addition to Pacific Epping regional shopping centre, major tenants fronting Cooper Street include Melbourne Wholesale Fruit Vegetable & Flower Market, the Northern Hospital, Epping Private, Melbourne Polytechnic, the Mantra Hotel, Costco Supermarket and others large-format retail, medical and automotive showroom users including Mercedes, VW and Ford.
James said a number of major infrastructure, logistics, advanced manufacturing, and large format retail projects have recently been completed in Epping, with many more planned.
Southbank Set for Build-to-Rent Projects
Developers in the growing build-to-rent sector are planning a multiple new projects around Melbourne’s city fringe.
Oxford and Indi have partnered with developer PDG Corporation to build a 42-level tower with 434 apartments on the former JH Boyd Girl’s School site at 132 Kavanagh Street. PDG had bought the property from the City of Melbourne in 2019 for $16.5 million.
PDG is already developing a build-to-rent tower next to Queen Victoria Market in an agreement with Mirvac, while Oxford is planning a $450 million project in Footscray with 702 units.
Developer Tim Gurner has also just announced a build-to-rent project in Southbank, in partnership with Qualitas and the owners of the 334 City Road property, the Catalfamo family. The former nightclub site will house a 41-level tower with 394 apartments after Gurner and Qualitas raised $1.2 billion for a new build-to-rent development fund.
Also in Southbank, Samma Property Group have announced a project at 65 Haig Street as part of a $1.7 billion pipeline of build-to-rent projects, and have also just paid about $20 million for a Development Victoria-owned 4,509sqm site at 194 Lorimer Street in Docklands, next to the Bolte Bridge.
The Village Belle Sells for $31m
The Village Bell Hotel, on the corner of Acland Street and Belford Street in St Kilda, has sold to pub owner and developer Mazen Tabet for $31 million.
The 2-storey venue occupies a 1,308sqm site and sold at a 4.7% yield, with a new 10-year lease to Australian Venue Company, one of Australia’s largest hotel operators.
Constructed in 1891, The Village Belle underwent a $15 million renovation and expansion in 2017 that saw the addition of a steel and glass atrium with a retractable roof, and 12 apartments at the rear.
Tabet also owns the Royce Hotel on St Kilda Road and the Portsea Hotel.
$200m of Outer Melbourne Development Sites Changes Hands
Developers have bought $200 million worth of development sites in outer Melbourne suburbs across 3 transactions.
Jinding is paying $130 million for 2 sites in the outer north that could yield almost 700 homes. They are the 57ha site at 1240 Mickleham Road in Greenvale, and the 28ha property at 65 Bodycoats Road, Wollert.
Jinding is affiliated with Chinese company Jinding Group.
Meanwhile, Sydney-based developer and builder Bathla Group has bought the Clyde town centre development site for $67.65 million. The 26.23 hectare site could be used for a neighbourhood shopping centre and other commercial and retail uses.
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.