Fitzroys Weekly Wrap - 7th June 2019

Posted on 07th June 2019

297 Lygon Street, Brunswick East
The historic home of Brunswick East icon Carbone Custom Made Clothiers has changed hands for the first time in 40 years, at a land rate of $4,352/sqm. The property has a single-level interwar Greek Revival brick showroom and warehouse building of 596sqm, with the front portion utilised as a retail space and the rear for handcrafting and tailoring.

60 Dandenong Road West, Frankston
A local investor paid $950,000 for the property, reflecting a sub-5% yield.

Shop 3, 534 Main Street, Mordialloc
The strata-titled space, home to nail salon Inchante, sold for $675,000 at a 5.7% yield.

491 Church Street, Richmond
An investor paid $1.885 million for the two-level 260sqm shop, which has a short-term lease to Pana Chocolate returning $119,500pa net.

325a Main Road East, St Albans
Medical clinic Kripa Pty Ltd signed a 5-year sub-lease at $50,000pa net for the 150sqm space, which has a six consultation suites and a treatment room, and will complement the building’s head tenant Pharmacy 4 Less.

1/1 Southpark Close, Keysborough
Dynamo Fitness leased the 530sqm showroom at $76,000pa.

213-217 Colac Road, Waurn Ponds
Supercheap Auto and Bed Shed have leased the subdivided 1,950sqm space within Waurns Ponds Homemaker Centre, taking 934sqm on a 10-year deal and 1,016sqm respectively. The combined gross rent is $458,000pa.

1/33 Flemington Road, North Melbourne
Nicole Chow of developer UAG sold the 590sqm medical centre at the base of an apartment project for $5 million, at a 6% yield. It is leased to five tenants with an average term expiry of around 4.5 years, and returns $321,047pa.

Level 1, 11-19 Bank Place, Melbourne
An investor purchased the whole floor for $4.25 million from owner occupier Simon Delzoppo, who has operated his Incubate IT Innovation Hub from the 570sqm space.

Level 4, 405 Collins Street, Melbourne
Another investor paid $2.55 million for the 301sqm office at a 3.75% yield.

Building 5, 658 Church Street, Cremorne
RealestateVIEW leased the 220sqm office for 4 years at $580/sqm.

Suite 102, 12-14 Cato Street, Hawthorn East
United Healthcare Imaging leased the 94sqm suite for its new national head office, at $34,000pa.

Suite 20A, 20-26 Liddiard Street, Hawthorn
LSR Construction will pay $22,000pa for the 43sqm space, at $512/sqm.

47-49 Overseas Drive, Noble Park
Design, engineering and project management company LGPM paid $3,289,650 for the 2,387sqm office, laboratory and warehouse complex, on a 6,749sqm site zoned Commercial 2. It will move from Scoresby, where it is currently leasing.

147-153 Canterbury Road, Kilsyth
ASX-listed APN Industria REIT paid $9.502 million for the 11,882 office, warehouse and manufacturing facility. On a 2.28ha site, it is leased until 2021 with options to door manufacturer B&D Australia, which has been at the site for more than 45 years.

74 Rupert Street, Collingwood
An owner occupier purchased the 218sqm two-storey office and warehouse, with a monthly lease, for $1.215 million.

11 Crown Street, South Geelong
The vacant 737sqm office and warehouse, on a 1,505sqm site, sold for $1.09 million.

30-32 Boileau Street, Keysborough
The older-style office and warehouse of 1,408sqm traded for $1.15 million.

Mirvac to bring build-to-rent to Queen Victoria Market:

Major developer Mirvac has inked a $333.5 million deal with PDG Corporation for the Munro site opposite the Queen Victoria Market, which would become home to one of Melbourne’s first build-to-rent projects.

Mirvac is looking to build 490 units on the 6,500sqm site, and under the agreement will then take ownership of and lease them out to residents.

Melbourne City Council purchased the Munro site in 2014 for $76 million to ward off improper development, as it went about planning an overhaul of the Market precinct.

It struck a deal with developer PDG to build on part of the site a 120-place childcare centre, 56 affordable housing units, community centre and kitchen, and 500 basement car parks for Market visitors, and PDG would be able to develop on the site. PDG obtained approval for 380 apartments and a hotel across 38-storey and 10-storey towers, with the residential tower on-sold to Mirvac in the new agreement.

Construction has already begun on the site, and approval will need to be received to accommodate the new plans.

The car parking aspect on the site is linked to the City of Melbourne’s vision to use the current Market car park as festival, events and public space. Council’s $250 million overhaul of the Market itself hit a roadblock last year when Heritage Victoria rejected its plans to dismantle the existing market sheds, build underground facilities and parking, and reassemble the sheds.

The build-to-rent sector, also known as multifamily, is more common in the USA and the UK, and typically sees developers and larger landlords retain ownership of residential buildings and lease them out with options for longer-term deals..

Salta has earmarked projects in Docklands and Richmond, next to Victoria Gardens, to include build-to-rent components, while Mirvac is developing a 315-unit complex in Sydney Olympic Park.

The 2018 Commonwealth Games athletes’ village on the Gold Coast has been transformed into the sector’s first large-scale project in Australia.

Box Hill development boom rolls on:

Eight adjoining home owners in Box Hill have sold their combined 2,061sqm block to Zynergy Property Development for $14.1 million.

The 12-16 Shipley Street property is within the Box Hill Activity Centre and is just north of Box Hill Central, Box Hill train station and Whitehorse Road. Golden Age Group has two developments nearby, including the under construction 36-level Sky One with 438 apartments, and the recently approved 429 dwelling, three-tower New China Town.

A string of nearby sites on Whitehorse Road are slated for sizeable projects: of 37 storeys at 843 Whitehorse Road, and a mixed-use tower with 273 apartments, hotel and offices at 837 Whitehorse Road; as well as 826-830 Whitehorse Road and the former Spotlight site at 851 Whitehorse Road.

Residential skyscraper proposals have been lodged for respective 194-apartment towers at 9-11 Prospect Street and 31-35 Prospect Street.

Next door to the Shipley Street site is Kin Consolidated’s 21-23 Irving Avenue, which is subject to an application for a 15-level, 123-apartment tower.

Disclosure: 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.

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