Weekly Wrap

Fitzroys Weekly Wrap - 15th March 2019

Posted on 15th March 2019

323-325 Hampton Street, Hampton
Offered for the first time in 30 years, the premises of Hampton Pharmacy sold for $2.66 million, at a 2.6% yield. The fully-leased two-storey brick building of 243sqm has a first-floor office space and wide frontage to the shopping strip of 7.62m.

526 Swanston Street, Melbourne

The vacant 125sqm ground floor space on the corner of Queensberry Street has a combined 31m frontage and sold to an owner occupier for $1.5 million.

111 Swanston Street, Melbourne
Singapore-listed pawnbroker Maxi Cash signed a 5-year lease over the 153sqm shop at $3,359/sqm.

158 Murphy Street, Richmond
Harvey Norman subleased the 2,100sqm warehouse from DMC on a 2-year and 6-months deal at $325,000pa gross plus GST, and will use it as a bulky goods store and dispatch centre for its nearby larger outlet at 479 Bridge Road.

26 Tortice Drive, Ringwood North

A local allied health operator leased the 220sqm former milk bar and three-bedroom residence, which is on an 891sqm site, and will refurbish the property for use as a health and wellbeing practice.

57 Park Street, South Melbourne
The vacant three-level building of 237sqm, on a 112sqm site, sold for $1.542 million.

211 Wellington Road, Mulgrave
Swiss industrial equipment suppliers Endress Hauser is moving its Melbourne head office to the 360sqm space, and will pay $315/sqm net.

477 Collins Street, Melbourne
Urbis will move into 4,100sqm across levels 10, 11 and 12 within Mirvac’s Olderfleet office development, which is expected to reach completion by 2020.

235 Queen Street, Melbourne
Youth Affairs Council of Victoria signed a 5 5-year deal lease over the remaining floor of the office building, and will pay $385/sqm for the level two premises. Also within the building, the Victorian Institute of Technology leased 1,871sqm over the building’s top five levels on a 5-year deal, and Suite Spaces inked a 6+6-year deal for 1,131sqm across three levels.

37-45 Camp Road, Broadmeadows
An investor paid $5.5 million for Telstra’s purpose-built facility, which has a 2,178sqm warehouse building that includes 657sqm of office space on a 13,890sqm site. Telstra has a 5 3 3-year lease and pays $346,000pa net.

170 Grange Road, Fairfield
The 702sqm office and warehouse is on an 809sqm site and sold for $1.91 million, with a 4-year lease to Cars of France returning $66,430pa gross plus GST.

23-27 Trade Park Drive, Tullamarine
An owner occupier bought the purpose-built 1,843sqm logistics warehouse, on a 4,195sqm site with 28 parking spaces, for $3.95 million.

34-38 Bakehouse Road, Kensington
Logistic Freight Solutions signed a 5-year lease over the 2,633sqm cold storage and office facility, and will pay $342,000pa net.

378-390 St Georges Road, Fitzroy North
A local developer acquired the 2,141sqm former Tradelink site from Fletcher Building for $8.13 million. The property traded with a permit for a six-level development with 48 two-bedroom and 21 one-bedroom apartments and three retail spaces, and includes an adjoining 226 sqm parcel fronting Barkly Street.

33-35 Queens Avenue, Hawthorn East
Zoned Commercial 1, the 596sqm site has a 20.11m frontage and sold for $3.42 million, with development potential of up to eight levels.

Moonee Ponds office landmark set for rejuvenation: The imposing seven-level tiered office building that dominates the active Moonee Ponds skyline is in for an overhaul, which will include a $20 million refurbishment and the leasing of 6,300 sqm of office space across its top three levels.

Already awarded a coveted 5 Star NABERS Rating, the substantial renovation works at 22 Gladstone Street will create one of Melbourne’s premier metropolitan office buildings, providing tenants with highly-specified workspace usually only found in new CBD developments.

Global designer Incorp has created an exemplary renovation scheme to create a green office environment with integrated technology to provide maximum sustainability and flexibility for future occupiers. A 5 Star Greenstar Rating is targeted through the energy-efficient design and upgraded services.

The 11-month works program will commence in March, and will involve comprehensive upgrades of all services, a new ground floor café, revitalised entrance lobby and new end- of-trip facilities.

Fitzroys, in conjunction with Knight Frank, will manage the leasing campaign. Space available ranges from 1,500 sqm to 6,300 sqm over levels four, five and six, each of which boast large terraces and expansive views towards the CBD.

Interest is expected from a range of blue-chip tenants focused on providing the best workplaces for staff, the highly-convenient location between the CBD and Melbourne Airport and the competitive rental. Potential occupiers include government departments, public sector bodies and corporate headquarters.

“Vacancies in Melbourne’s CBD are down to a decade-low of 3.2% and the city’s rental growth is expected to be among the highest in the world through 2019, and tenants are looking beyond the CBD in growing numbers,” the leasing agents said.

“Moonee Ponds is currently undergoing a residential and commercial development boom that is transforming the north-western suburb into an inner-city hub, and is well-placed to capitalise on that growing demand.”

There are more than 1,500 apartments within the Moonee Ponds Activity Centre in various stages of planning and development, which include the Mason Square development on the former Moonee Ponds market site of 1.34 hectares, while the future $2 billion overhaul of the nearby Moonee Valley Racecourse will include multiple residential and commercial buildings, adding a further 2,000 dwellings.


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.