Weekly Wrap

Fitzroys Weekly Wrap - 5th April 2019

Posted on 05th April 2019

000 Retail 05

674 High Street, Kew East
A local buyer purchased the vacant retail property within Harp Village for $1.2 million. Zoned Commercial 1, the 311sqm site has a 65sqm building with on-site parking and rear access. The sale price reflected a 2.5% yield based on current market rent.

1053-1055 Point Nepean Road, Rosebud
The NAB bank branch sold for $2.125 million at a 3.95% yield, with a new 3-year lease. The double-fronted building is on a 620sqm site and has been occupied by the major lender for 20 years.

285 Diamond Creek Road, Plenty
The 400sqm strata-titled premises of restaurant Phoenix & Co sold for $1.918 million. It has a 7+7+7-year lease returning $135,198pa plus GST, and is one of 7 retail properties in the mixed-use development.

306 Swan Street, Richmond
An owner occupier paid $1.475 million for the 215sqm retail shell, positioned at the base of a new apartment complex.

103 Green Street, Cremorne
La Manna & Sons signed a 2-year lease over the ground floor commercial kitchen at $300/sqm.

000 Specialised 05

92-96 O’Shanassy Street, Sunbury
A mainland China buyer purchased the fully leased healthcare centre, anchored by Tristar Medical Group, for $4.51 million. The 708sqm building, on a 1,025sqm site, has four separate tenancies and returns $275,000pa.

000 Offices 05

293-297 Lygon Street, Carlton

Universal Music Australia leased 369sqm within the redeveloped King & Godfree building in a 5-year deal at $460/sqm net.

179 Queen Street, Melbourne
Security firm Gatekeeper Vetting Pty Ltd signed a 5-year lease over a new 82.5sqm space on level 9 at $400/sqm.

357 Camberwell Road, Camberwell
Oak Road Estate leased the fully-fitted suite of 697sqm on a 3-year deal at around $300/sqm.

000Industrial 05

38 Halsey Road, Airport West
The new office and warehouse facility of 361sqm sold for $980,000, having recently been leased for $43,000pa on a 3+3+3-year deal. It is on a 614sqm site with 6 on-site parking spaces.

57-65 Paulson Road, Campbellfield
A local owner occupier paid $2.1 million for the 2,600sqm office and warehouse building, which is on a 4,180sqm site.

61 Castro Way, Camberwell
V/Line signed a 4-year lease over the 1,110sqm office and warehouse.

000 Talking Points 05

Collingwood skyline set for new addition:

American real estate group Hines has paid $28.5 million for a 2,120sqm site on the corner of Wellington and Northumberland Street, with plans to build a $200 million office tower from prefabricated timber.

The 36-52 Wellington Street property comprises warehouse-style buildings that have leases expiring within 18 months.

Hines’ new tower will be across from Grocon’s $120 million Northumberland project, which will rise 13 storeys with 15,000sqm of office space, and has pre-commitments from Aesop and co-working space operator The Commons.

Also nearby, construction has started at Pace Development Group’s 10-storey office building at 51 Langridge Street. Across the road is 60-88 Langridge Street block, 1,056sqm of which was acquired last year by Tribe Hotels Group for a new hotel offering, while the remainder has been retained by Peregrine Projects.

Closer to the city, Pellicano Group has bought the 860sqm corner site at 207 Victoria Parade, on the Fitzroy side of Smith Street and opposite McDonald’s, for around $11 million. Currently improvements include a two-level office and retail building formerly tenanted by 7-Eleven, and Pellicano is planning a new office development on the site.

Also on the city fringe, developer Tzuo Zern Yang has reportedly acquired 121-131 Cardigan Street in Carlton for around $20 million, with intentions to build a 10,000sqm office project on the 1,846sqm site that is adjacent to Argyle Square.

Melbourne City Council endorses revised Queen Victoria Market proposal:

Town Hall unanimously approved revised plans for the $287 million Queen Victoria Market precinct renewal this week.

The new proposal would see the creation of a new civic space of 1.5 hectares, and deliver 1,000 parking spaces for market shoppers to be located within future developments on Franklin Street and on the corner of Queen and Therry Streets.

Previous plans to dismantle the existing market sheds, construct three underground levels of parking below and then reassemble the structures were scuppered by Heritage Victoria last year, due to fears that the 19th century sheds would be irreversibly altered.

As part of the latest plans, the sheds would receive on-site renovations, while the new public space, to be known as Market Square, would replace the current open-air car park adjacent to the market and be used as a space for festivals, farmers’ markets, events and eating.

Also included is a $6 million plan to have storage and refrigeration at fruit and vegetable stalls, as well as centralised waste facilities, and new loading facilities, trader storage, amenities and waste management for the Meat and Fish Hall.

An estimated 22,000 extra residents will be living in the surrounds of the Market within five years.

Meriton to make its Melbourne debut:

Harry Triguboff’s Meriton apartments will open in Melbourne for the first time, after the company acquired 140 King Street in the CBD for around $29 million from Chinese-backed developer Besgate.

The 781sqm site currently has a vacant three-storey building and will make way for a Meriton Suites apartment hotel. It was put to the market with a permit for a 57-storey tower with 263 apartments, one of three central Melbourne sites offered by Besgate last year with development approvals.

Meriton has completed around 70,000 apartments in New South Wales and Queensland, with its serviced apartments business, known as Meriton Suites, comprising 18 hotels.

Disclosure:Fitzroys Property Wrapis 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.