Weekly Wrap

Fitzroys Weekly Wrap - 8th March 2019

Posted on 08th March 2019

000 Retail 05

429 Bay Street, Brighton
A developer paid $5.39 million for the 1,370sqm site, which encompasses three titles and has a medical centre that will vacate on settlement and two residential tenancies on monthly leases.

342 Belgrave-Gembrook Road, Emerald
The Ritchies IGA Supermarket sold for $5.56 million at 5.8% yield. It has a 10 5-year lease returning $328,784pa plus outgoings and GST, and is on a 4,776sqm site zoned Commercial 1 with 79 on-site parking spaces.

88 Beaconsfield Parade, Albert Park
The 160sqm premises of Pineapple Palm Café sold for $1.789 million at a 5.3% yield. It has a 5 5-year lease bring $95,000pa net.

69 Main Street, Mornington
The Ghanda Clothing store sold for $2.6 million on a 3.6% yield, with a 2.5-year lease returning $96,721pa net plus outgoings and GST. It sits on a 280sqm site with six parking spaces.

81 Boronia Road, Boronia
A local investor purchased the 62sqm Boronia Laundrette premises for $285,000. It has a 3 3 3-year lease returning $15,375pa plus outgoings and GST, and is on an 89sqm site.

19 Clarence Street, Bentleigh East
Another local investor paid $270,000 for the Crown Massage premises of 50sqm, which has a 2 2 2-year lease bringing $20,400pa plus GST.

50 Lonsdale Street, Melbourne
Fashion retailer Lieutenant & Co. leased the 76sqm space on a 3-year deal with options at $80,000pa gross.

527-531 Church Street, Richmond
Danish company BoConcept Furniture signed a 5-year lease over the former restaurant and bar space of 472sqm, which will become its first Melbourne showroom, at $295,000pa net.

111 Toorak Road, South Yarra
The Hammer Real Estate, part of McMullin Group, will open a new Ray White real estate agency franchise from the 200sqm corner space after signing a 5-year lease at $110,000pa net.

000 Offices 05

100 Webb Street, Fitzroy
An investor acquired the home of publisher Native Tongue Music for $1.5 million at a 2.7% yield. The two-level 150sqm building is on a 170sqm site with Commercial 1 zoning, and has a 4 4 4year lease.

574 St Kilda Road, Melbourne
Developer Everland Global inked a 3-year lease at $600/sqm gross over 500sqm that it will use an office and display suite.

110 Church Street, Hawthorn
Elora Health leased the former VicRoads office of 792sqm on a 10 5-year deal at $320/sqm for a new medical clinic with GPs and allied health professionals.

23 Cremorne Street, Cremorne
Insurance brokerage and risk management firm Risk Partners leased the 300sqm two-level office building at $100,000pa net plus GST. It is on a Commercial 2-zoned site with two parking spaces.

000Industrial 05

31 Jersey Road, Bayswater
The 3,510sqm facility leased to online electrical supplies wholesaler Eltech Australia sold for $4.325 million on a 6.9% yield, with a new 5 5-year deal. It has a 2,953sqm warehouse, 557sqm of office space and 51 on-site parking spaces.

29-31 Sackville Street, Collingwood
A local investor paid $1.5 million for the 218sqm brick warehouse, which is on Commercial 2-zoned site and has a lease running until January 2020.

2-4 Henry Wilson Drive, Rosebud
The OuRVan RV warehouse site of 9,673sqm sold to a local investor for $2.65 million at a 5.66% yield, with a 5 5-year lease bringing $150,000pa net.

6-8 Henry Wilson Drive, Rosebud
Next door, developers acquired the vacant 8,500 block of land for $2.25 million, with intentions to build warehouse and factory units on the site.

000 Talking Points 05

Smooth moving into Flinders Lane: The next step in the retail renaissance of Melbourne’s iconic Flinders Lane will see women’s fashion boutique, Smooth, move into the high profile former newsagency space in the 271 Collins Street gallery.

James Spencer of Fitzroys negotiated the three-year lease with a three-year option for the 91sqm shop at 280 Flinders Lane, at around $130,000 per annum net.

Smooth will be opening after high-profile fashion operators Tiffany Treloar and Kisskill recently started trading in the famous strip.

“The strong enquiry from operators looking to snap up the high-profile space in this busy part of Melbourne’s CBD meant we were able to lease the space in less than a month of going to the market,” Spencer said.

“We received well over 50 enquiries from hospitality, fashion, convenience and service groups.”

Spencer recently leased Shop 6, 288 Flinders Lane to iconic Australian fashion designer Tiffany Treloar.

“Leasing demand has definitely increased on Flinders Lane, which benefits directly from the hustle and bustle of Degraves Street and Centre Place, and the further pedestrian traffic generated by its close proximity to Elizabeth Street and Flinders Street station,” he said.

Smooth’s deal also follows Fitzroys’ recent lease of Shop 1, 288 Flinders Lane to Melbourne-based cult fashion label e.g. etal. Also in the precinct are fellow Melbourne label Nique and designer shoes label Zomp, while Lingerie retailer Kisskill has moved into 241A Flinders Lane, and Lord of the Fries has opened its new bakery venture, Weirdoughs, next door at 241B.

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 2019 Fitzroys.