Weekly Wrap

Fitzroys Weekly Wrap - 24th December 2021

Posted on 24th December 2021

000 Retail 05

90a Frankston-Dandenong Road, Dandenong South
An investor paid $4.8 million at a 5.35% yield for the 1,600sqm showroom. It has a renewed 5+5-year lease to national retailer Lavita Furniture returning $257,007pa plus GST.

156-158 Langridge Street, Collingwood

A nearby hospitality group bought the single-level 160sqm vacant warehouse, fully-fitted as a restaurant and bar, for $1.95 million.

17 Stinton Avenue, Newtown

The owners of a Geelong butcher shop paid $1.512 million to buy the 191sqm freehold of their store.

2/1-4 Railway Walk, Brighton

A local investor paid $722,000 for the 45sqm property at a yield of 4.18%. Ninna’s Kitchen has a 3-year lease plus options returning $36,000pa.

Shop 6/41-43 Kirkwood Crescent, Hampton Park

The 102sqm shop leased to a laundromat sold for $900,000 at a 4.72% yield, with an 8-year lease plus option currently returning $42,500pa plus GST net.

Shop 7/41-43 Kirkwood Crescent, Hampton Park

An investor paid $805,000 for the Foodie’s Bakery & Café premises. It sold on a 4.97% yield, returning $40,000pa plus GST net from a 5-year lease with options.

Shop 5/41-43 Kirkwood Crescent, Hampton Park

Offered with a new 7-year lease plus options to takeaway food outlet Creole Corner, the 100sqm property sold for $825,000 at a 4.99% yield.

000 Offices 05

93 Burke Road, Camberwell
The 4-level, 1,558sqm building sold for $11.43 million. It is fully-leased with a 1.5-year WALE and currently returns $617,096pa.

144-152 Langridge Street, Collingwood

The 2-level, 1,000sqm building on a 500sqm site, occupied by an architecture studio and community social support organisation, sold for $7.2 million at a 3.3% yield. The Ladner group was the vendor.

325 Camberwell Road, Camberwell

The 337sqm 2-level building on a 274sqm site sold for $2.405 million. It is fully-fitted and includes 4 off-street parking spaces.

22-24 Sackville Street, Collingwood

The 245sqm warehouse building on a 305sqm Commercial 2-zoned site sold for $2.76 million. It is currently used as an open plan office and leased until May 2023 returning $41,595pa plus GST.

000Industrial 05

57 Keys Road, Moorabbin
A local developer bought the 1,500sqm vacant warehouse property for $2.9 million with plans to redevelop the 2,393sqm site.

7-9 Lever Street, Oakleigh

The 2,457sqm office and warehouse sold for $3.875 million with a lease to an auto repair and servicing business returning $148,188pa plus outgoings and GST.

000 Development 05

1-7 Council Street, Hawthorn East
A local developer bought the 4 neighbouring Victorian terraces, on a combined 426sqm Commercial 1-zoned site, for $3.12 million.

000 Specialised 05

1 Pintail Drive, Torquay
An investor bought the childcare centre property for $10.6 million at a 4.88% yield. Child’s Play Early Learning has a 15-year lease to 2032 with options to 2062, returning $517,762pa plus GST net. The 963sqm facility is on a 3,612sqm triple-fronted site.

000 Talking Points 05

Melbourne’s Iconic “Skipping Girl” Building Sold in Off-Market Transaction
The building home to a Melbourne industrial heyday icon, the “Skipping Girl” Vinegar sign, has been sold in an off-market transaction.

Fitzroys Director Paul Burns negotiated the sale of 651 Victoria Street, Abbotsford.

The sign sits above a 3-level, 3,668sqm office complex which also fronts the Yarra River. It was sold by multiple strata title holders that included funds manager Vantage Property Investments, who banded together to sell the property in one line.

The property was mostly leased and sold with a short weighted average lease expiry (WALE). Currently, the property returns $1.2 million per annum and $1.5 million when fully-leased.

The private purchaser plans to upgrade and re-let the building with a longer-term view to redevelopment, which may include adding levels to the existing building or construction of a new building.

However, the National Trust and Victorian Heritage Register-listed sign must remain incorporated into any future structure on the prized 2,971sqm site.

The sign - which Heritage Victoria considers to be first animated neon sign displayed in Melbourne - features a girl known as “Little Audrey” and was originally installed above a vinegar factory at nearby 627 Victoria Street to promote the Skipping Girl vinegar brand manufactured by Nycander & Co. When the vinegar factory moved to Altona in 1968, the sign was copied and reinstated on the roof of 651 Victoria Street in 1970.

“This was an ultra-rare opportunity to own a true Melbourne icon,” Burns said.

“We were able to secure a buyer off-market during the pandemic through our contacts in the extensive Fitzroys database, after the property was offered to the market early in 2020 through other agencies, without a buyer being found,” he said.

“As well as the chance to secure a landmark asset, the attraction for buyers also stemmed from the property’s rare riverfront position, its location opposite Victoria Gardens
surrounded by medium and high-density residential, and the ongoing gentrification of the city fringe.

“Abbotsford is one of the last city fringe suburbs with genuine unrealised development potential. Melbourne’s inner-city office markets have been in huge demand throughout COVID with flexible working arrangements in vogue, and businesses and employees are looking for highly accessible locations close to lifestyle amenity.

“The Richmond and Cremorne markets have become ultra-competitive in recent times and neighbouring Abbotsford is firmly in the sights of a growing number of businesses.

“Abbotsford is rapidly gentrifying from an industrial precinct to a preferred medium and high-density residential and commercial destination.”

Next door, Salta is developing the 9-level high-density Walmer apartment project.

Burns noted the property’s ample car parking (102 bays) was also an attraction.

“Car parking has become more of a premium in the COVID environment, so many still preferring to drive rather than take public transport in the commute to work,” he said.

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.