Weekly Wrap

Fitzroys Weekly Wrap - 26th April 2019

Posted on 26th April 2019

000 Retail 05

481 Toorak Road, Toorak

A local investor purchased the two-level 420sqm Vintage Cellars building for $8.7 million, at a 4.1% yield. The ground floor is used as a retail outlet and the first floor for board meetings and taste-testing. Vintage Cellars has a five-year lease over the property, which has a site area of 422sqm.

273 Little Lonsdale Street, Melbourne
The 58sqm triple-fronted shop, leased to Amelia’s Wardrobe, sold to a local investor for $2.435 million at a 3.56% yield. Amelia’s Wardrobe has a lease until October 2020 with a 5-year option, and the sale price reflected a building rate of $41,810/sqm.

285 Diamond Creek Road, Greensborough
The 80sqm strata shop is leased to Bottlemart on a 5-year term and sold for $620,000 at a 6.1% yield.

177 Glenferrie Road, Malvern
Fashion and jewellery boutique Origen Imports leased the 95sqm fully refurbished ground floor space, opposite Coles, at $610/sqm.

000 Offices 05

Level 6, 608 St Kilda Road, Melbourne
The 253sqm vacant strata floor sold for $1.3 million, and included three on-title car parks.

727 Collins Street, Melbourne
Renewable energy company Total Eren leased the 260sqm fully fitted office on Level 1 of the Collins Square building at around $750/sqm.

192 Burwood Road, Hawthorn
Queensland-based Your Solution Compounding Pharmacy leased the refurbished 289sqm space in Building B for its Melbourne head office, while computer consultants Nexys IT have also taken 170sqm in the building. Both will pay around $350/sqm net.

000Industrial 05

1608 Hume Highway, Campbellfield
A Melbourne-based investor purchased the 1.655-hectare site, which has a 4,949sqm building, for $6.5 million from an interstate syndicator. Current tenant Komatsu, a construction, mining and military equipment manufacturer, has a 7-year lease ending in August 2020 that returns around $411,000pa net.

6 Metrolink Circuit, Campbellfield
The Industrial 1-zoned property of 6,210sqm sold for $2,608,200 to a purchaser that will build on the site and retain as an investment.

11 Redland Drive, Mitcham
An investor paid $3 million for the 1,079sqm office and warehouse building, which is on a 2,211sqm site with 19 parking spaces and is zoned Industrial 3. It is leased to an ASX-listed company on a 3+3+3-year deal returning $168,806pa plus GST.

6 Chifley Drive, Moorabbin
A global packaging company has leased the 11,917sqm office and warehouse building at Moorabbin Airport and will pay around $90/sqm. The property has 66 on-site parking spaces.

000 Development 05

69 Hardiman Street, Kensington
The vacant 350sqm office and warehouse site sold for $1.75 million with approval for eight residential apartments of one and two bedrooms.

000 Talking Points 05

Swinburne Uni takes Flinders Lane building for new city campus: Invicta House, in the retail and lifestyle hotspot of Flinders Lane, has been acquired by Swinburne University for a new vertical education campus in a circa $45 million deal, according to The Age.

In adding to its popular Hawthorn campus that has become a hub of activity for Glenferrie Road, Swinburne will follow suburban-based Monash and La Trobe universities in setting up CBD locations. Monash leased the entirety of the 37,300sqm 750 Collins Street building two years ago, and La Trobe is operating from 360 Collins Street.

The century-old, eight-storey Invicta House building at 226-232 Flinders Lane had been owned by the Lazarovits family since 1998, and is currently occupied by Melbourne East Police Station and Greenhouse Backpackers, part of the vendors’ Friendly Backpackers business.

The building has a gross area of 6,482sqm and is on a 741sqm site opposite the Nicholas Building and on the corner of Monaghan Place. It is also next door to the 1911-built former rag-trade building Manchester House,

at which Fitzroys recently sold two large office floors and a retail unit of a combined 1,400sqm to a not-for-profit organisation for around $10,000 per sqm.

Also in the CBD, a Nepalese-based education provider has just paid $4,000,888 for the 420sqm Level 5 of 20 Queen Street.

Frasers takes Dandenong South industrial tract: Singapore-backed Frasers Property Australia has acquired a 41.3-hectare Dandenong South site on which it intends to develop a $300 million estate in the logistics and industrial hub over the next three to five years.

The 875 Taylors Road property was acquired from an offshore syndicate.
The area continues to draw strong investment amid the evolution of e-commerce and logistics solutions, and companies look for assets offering good road and transport connections.