Weekly Wrap

Fitzroys Weekly Wrap - 3rd May 2018

Posted on 03rd May 2019

393-395 Bay Street, Brighton
The adjoining shops sold off-market for $3.6 million, at a sharp 2.3% yield, to a local land banker. They are on a 371sqm site and leased to Anmo Massage and health food shop Back 2 Nature.

1117 Riversdale Road, Surrey Hills
The 160sqm building in Wattle Park Village sold for $860,000 on a 4.9% yield, and is occupied by a bakery and office tenant. It is on a 210sqm site with frontages to Riversdale Road and Park Road.

338-342 McDonalds Road, South Morang
The Woolworths-anchored centre is now fully leased after shops were leased to Eco Laundry Room at $354/sqm on a 5+5-year term, and to cake decorator Bon Appe-sweet at $800/sqm in a 3+3-year deal.

785 Toorak Road, Hawthorn East
Liquor retailer Thirsty Camel and Health More signed 5-year leases within the building, over 221sqm and 759sqm respectively. Both will pay around $380/sqm net.

9-11 Cremorne Street, Cremorne
The Reveal Group leased level 3 of the new development on a 3-year term at $700/sqm gross.

140 William Street, Melbourne
Construction group Promax leased 148sqm on level 14 for 3 years at $640/sqm net.

600-604 Old Geelong Road, Brooklyn
Centennial Property Group acquired the 7.27ha Brooklyn Distribution Park from GM Property Group for around $35 million, at a 6.15% yield. It has a total building area of 31,571sqm and sold fully leased to nine tenants that include Storage King, BagTrans and FBT Transwest.

31 Hall Street, Hawthorn East
Former Melbourne Knights coach and president Tony Vrzina sold the vacant 460sqm office and warehouse building for $2.7 million, which has since been leased by the new owner to a healthcare tenant.

Lots 1-4, 678 Boundary Road, Truganina
CRC Group acquired the two sites within the Mode Business Park for a combined $6,226,390, to develop multiple office and warehouse units. The sites included a 2ha property bought for more than $4.642 million, and a 6,000sqm parcel for more than $1.583 million.

11 Cottage Street, Blackburn
An investor paid $937,000 for the 330sqm warehouse on a 453sqm site.

21 Whittaker Street, Maidstone
Jaybro leased the 3,000sqm warehouse at $132,000pa net in a 3-year deal.

Trinity College signs up for Elizabeth Street biomedical and education hub

The University of Melbourne’s Trinity College will open a new vertical campus on the former Melford Motors site at the top of Elizabeth Street, committing to 9,500sqm of space within the proposed $750 million biomedical and education development.

The project will span the Melbourne City Toyota dealership at 611-681 Elizabeth Street, owned by PDG Corporation, as well as the adjoining Bob Jane T-Mart site which is held by Jane Property Group.

PDG has lodged plans for a 19-storey tower with 20,000sqm for medical research and development use and a 14,000sqm office and retail building, with the heritage Melford Motors building to be retained. A 20-storey, 17,000sqm tower has been proposed for the Bob Jane property as part of an associated application.

The site is close to the University of Melbourne and the Royal Melbourne Hospital, Royal Women’s Hospital, and Peter MacCallum Cancer Centre, as well as the future site of the Parkville metro tunnel train station.

Swinburne University has just purchased the eight-level Invicta House building on Flinders Lane in the CBD for $45 million, which it will use for a vertical campus.

Dexus confirms 80 Collins Street megadeal: Dexus has acquired the 80 Collins Street commercial complex in the CBD’s east end for $1.476 billion from QIC, marking Melbourne’s biggest-ever property sale.

The development will comprise an existing 52-storey tower, previously known as Nauru House, around which is bring built a 39-storey office tower currently more than 50% leased, and a 300-room hotel and retail complex.

Across Exhibition Street is the combined 52 and 60 Collins Street corner site that Dexus acquired over two separate transactions last year for $230 million, on which it plans to build a 35,000sqm office complex.

Burwood buy expands Poly’s eastern suburbs holding: China-backed Poly Holding has acquired two three-storey Burwood Highway office buildings in Forest Hill on a 2.62ha block for $45.85 million.

Poly Holding now owns around 8.3 hectares of land opposite the Tally Ho Business Park, having last year acquired the Hewlett Packard office campus on a 5.68ha site next door for $88 million.

In the latest deal, 347-351 Burwood Highway sold with around 70% occupation and a 3.4-year WALE. Tenants include NEC.
The combined sites are zoned Commercial 1 the offer potential to bring in medium and high-density residential components.

Council considers city shake-up

In anticipation of daily visitors increasing from 911,000 to 1.4 million within 20 years, Melbourne City Council is considering a raft of options to make the CBD more pedestrian and bike friendly, according to The Age.

Measures to be discussed as part of a 10-year transport plan include closing the city’s “Little” Streets – Little Collins, Little Bourke, Little Lonsdale and Little La Trobe Streets – at different times; a new bridge over the Yarra River linking Collins Street and Fishermans Bend that would create a new route for trams, cyclists and pedestrians; lowering 40km/h speed limits to 30km/h, and ongoing removal of on-street car parking in favour of motorbike parking and expanding foothpaths. Some 30km of new bike lanes is also being considered.

Walking is estimated to account for around 90% of travel within the Hoddle Grid.

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.