Weekly Wrap

Fitzroys Weekly Wrap - 22nd February 2019

Posted on 22nd February 2019

5 Commercial Road, South Yarra

The premises of café Mister Zen, featured in hit TV series The Block and located at the base of the landmark Blocktagon development, sold for $1.11 million at a 4.3% yield. The café has a building area of 133sqm and is leased for 4+4+4 years.

330 Auburn Road, Hawthorn
A local investor paid $1,357,500 at a 3.5% yield for the 155sqm two-storey shop and dwelling, which is leased to Sisko Chocolates on the ground floor.

Shop 2A, 84-104 Johnston Street, Fitzroy
Bicycle retail store and workshop Just Ride It leased the 127sqm space on a 3 year deal at $32,000pa gross.

Shop 7, 50 Lonsdale Street, Melbourne
Boutique fashion retailer Lieutenant & Co signed a 3 year lease over the 76sqm space at $80,000pa gross.

520-522 Sydney Road, Brunswick
Fitness group Befit Training leased the 430sqm open plan space at $75,000pa net plus GST.

Shop 25, Wheelers Hill Shopping Centre
A massage therapist leased the 46sqm shop at $25,000pa net plus GST in a 5+5-year deal.

8 Prince Patrick Street, Richmond

An investor acquired the 3 level boutique office building of 169sqm for $1.08 million at a 4.6% yield for their SMSF. It is leased to software provider Register Now.

59 Garden Street, South Yarra
Creative architecture and design firm Telha Clarke signed a 5+5-year lease over the 350sqm building at $79,000pa net with 4% increases.

110 Chifley Drive, Preston
Community support group Omni-Care will consolidate several of its sites to the 1,660sqm ground floor tenancy within the Preston Corporate Centre. It will pay around $350,000pa over six years.

1 Meyers Place, Melbourne
Doghouse Agency leased the 112sqm office at $558/sqm on a 3 year deal.

636 St Kilda Road, Melbourne
Lease Express and Loan Market have leased respective suites on 3 and 7 year deals at $500/sqm gross.

4 Ganton Court, Williamstown North
After signing a new contract with Yarra Trams, National Rail Refinishers leased the 1,260sqm office and warehouse facility at $100,000pa net over 5 years.

13-26 Whittingham Circuit, Greensborough

A developer picked up the 4,733sqm site from Nillumbik Shire Council for $3.95 million. It has approval for development of 14 townhouses across individually titled blocks sized between 266sqm to 493sqm.

644-646 Mountain Highway, Bayswater
The 2,514sqm site has a 38m frontage and was sold by a private local group to a developer for $3.418 million.

414-416 Somerville Road, Tottenham

An interstate investor paid $22 million for the 7.37-hectare site with plans to reposition the property, which currently has 24,343sqm of improvements.

36 Thornton Crescent, Mitcham
Swan Plumbing acquired the 967sqm office and warehouse building, on a 1,541sqm site, for $1.9 million with a short-term lease.

4 Saligna Drive, Tullamarine
The expanding Advanced Heavy Vehicle Driver Training Centre is moving to the 1,484sqm office and warehouse facility after agreeing to a 10-year lease a $163,000pa gross.

48 Vella Drive, Sunshine West
ATE Tankers inked a five-year lease over the 2,300sqm property at $190,000pa.

Melbourne CBD strata portfolio in historic Manchester House changes hands: A strata portfolio of two large office floors and a retail unit within the Manchester House building on Flinders Lane has sold at around $10,000/sqm.

The offering had a total floor area of approximately 1,400sqm and was purchased by a not-for-profit organization.

Fitzroys agents Peter Weatherby and Alex Shum negotiated the sale on behalf of a private investor. The property is occupied by Chisholm Institute and operates as a hairdressing and beauty college.

Manchester House, at 234 Flinders Lane and positioned on the corner of Manchester Lane, was constructed through 1911 and 1912 to a design by architects Bates Peebles and Smart, and marked the entry of the old Adelaide clothing manufacturers, G & R Wills and Company into Melbourne.

Weatherby said the floors presented an opportunity to acquire part of one of the last remaining and pre-eminent

examples of the rag-trade warehouses that dominated the area in the first half of the 20th century.

The New York loft-style accommodation had been converted to highly sought after offices and features high ceilings, exposed brick walls, expansive feature windows, and abundant natural light.

The Manchester Lane retail unit is internally connected to the office floors, and links Flinders Lane with the prime Collins Street retail precinct.

“The sale price of around $10,000 per sqm was within our expectations, especially considering the rarity of such well located, large strata floors being offered to the market,” Shum said.

Weatherby said potential buyers were keen to acquire a rare large strata floor in a bustling location, opposite one of the main entrances of the new Town Hall Metro Station, and in the heart of this creative precinct which includes Degraves Street, Centre Place and Manchester Lane.