Weekly Wrap

Fitzroys Weekly Wrap - 14th June 2019

Posted on 14th June 2019

000 Retail 05

1016 Cranbourne-Frankston Road, Cranbourne
A local family acquired the 7-Eleven, Oporto and Smokin’ Joe’s Pizza complex for $8.25 million. The 4,240sqm corner site is adjacent to McDonald’s and the 600-lot Amstel Development, and has long-term leases to each of the tenants with a combined return of $503,060pa net.

402-404 Heidelberg Road, Fairfield
The 651sqm showroom, on a 770sqm site zoned Commercial 2 with a 21m frontage, sold for $1.804 million with a lease ending next month.

Shop 3, 48 Bourke Street, Melbourne
A Malaysian investor purchased the 80sqm ground floor space for $1.4 million at a 5.09% yield, with a 10-year lease to Golden Star Massage running until 2022 and two 5-year options.

23 Worrell Street, Nunwading
A local investor purchased the 57sqm shop, on a 192sqm site, for $432,000 at a 3.7% yield.

539 Chapel Street, South Yarra
Overseas children’s toys and clothing retailer, Things Adorable, leased the 150sqm space for their Melbourne flagship store at $95,000pa net.

552 Chapel Street, South Yarra
Melbourne Laser Clinic will add to its existing CBD practice, signing a 10-year deal over the 165sqm space.

309 Victoria Street, West Melbourne
Violin repairers, The Violineri leased the 120sqm property at $40,000pa on a long-term deal.

51A Main Road, Monbulk
Liquor retailer Cellarbrations inked a 10-year lease over the 254sqm building at $50,000pa.

000 Offices 05

Level 9, 171 La Trobe Street, Melbourne
The 434sqm vacant floor sold for $3.125 million, at $7,200/sqm.

557 Little Lonsdale Street, Melbourne
The ground and mezzanine office traded for $2.2 million, at $14,966/sqm, and at a 6.63% yield with a new 5+5+5+5-year lease to National Property Management.

Level 5, 398 Lonsdale Street, Melbourne
Comprising two suites on separate titles, the 230sqm office sold for $1.95 million.

635 Canterbury Road, Surrey Hills
An owner occupier paid $5.7 million for the two-level 1,110sqm building, which has short-term holding income and is on a Commercial 1-zoned site of 1,011sqm with 33 on-site car parks.

87 Cubitt Street, Cremorne
Pedestrian TV leased the converted character warehouse space of 227sqm in a long-term deal at $95,000pa.

Level 1, 109 Auburn Road, Hawthorn
The recently renovated 85sqm space has been leased to a building and design company in a 3-year deal at $318/sqm.

195 Wellington Road, Mulgrave
Adorn Cosmetics signed a 4+4-year lease over the 239sqm space on level one of building two at $83,650pa net, as well as six car spaces at $120pcm.

25 Church Street, Brighton
A residential and commercial building firm took out a 5-year lease at $50,000pa net.

000Industrial 05

1620 Sydney Road & 45 Paulson Road, Campbellfield
An owner occupier paid $7 million for the vacant 2.28ha site, which is zoned Industrial 1 and has a 4,410sqm warehouse and office building.

Maker Place, Truganina
Dutch online retailer HB Commerce leased the 30,885sqm office and warehouse facility, owned by Frasers Property, for 3 years at circa $75/sqm to $80/sqm.

34-36 Banfield Court, Truganina
Hitachi signed a long-term deal over the 11,790sqm property for a new distribution centre at $80/sqm.

12 Little Hyde Street, Yarraville
Truck and 4WD rental company Hertz Trucks leased the 1,115sqm warehouse at $67,000pa in a 3+3+3-year deal.

7 Newcomen Road, Springvale
A beauty products supplier inked a 3+3-year deal for the 2,349sqm site at $130/sqm.

000 Development 05

39 Venice Street, Mentone
The 320sqm fully leased block of six apartments sold for $2.25 million at a 3.3% yield. It is on a 651sqm site on the corner of Cremona Street.

8 Oaklands Avenue, Ferntree Gully
The cleared 1,066 sqm parcel sold for $655,000, with potential for development of a warehouse, gym or retail shop with a rear warehouse.

000 Talking Points 05

CBD East End Buildings Sell For $22.35 Million

Co-founder of construction software firm Aconex, Rob Phillpot, has acquired the adjoining city buildings at 37 and 39-41 Little Collins Street in separate deals.

The triple-fronted, three-level building of 511sqm at 39-41 Little Collins Street sold for $16.5 million. It is home to Italian restaurant Lupino on the ground floor and Alternative Technology Association on level one, while the upper levels are partly leased on short-term deals.

Next door, the two-storey brick building of 175sqm, with a distinctive arched window, traded for $5.85 million and is leased to tapas venue Bar Lourinha.

The buildings are next to the Sheraton Hotel, and had been held by the Mathews family for nearly 50 years.

Eastern Suburbs Offices Still Enticing Investors

A local private investor has won out from developers to secure the Kew Corporate Centre for a figure around $19 million to $20 million, according to The Age.

The 3,520sqm office complex at 830-932 High Street and 1401 Burke Road has four buildings as well as 111 parking spaces on a 4,864sqm site. Offloaded by the Devitt family, it traded at a sub-4% yield with 92% occupancy. Fully leased, the asset could return $823,745pa.

It follows the three-level 3,361sqm Kew building at 79-83 High Street selling for $19 million, in a deal negotiated by Fitzroys’ Paul Burns in conjunction with Kelly & Kelly.

In other recent deals across the eastern suburbs, investor Wei Zhou bought the three-level 4,303sqm office building at 19-23 Prospect Street in booming Box Hill for around $22 million, while China-backed Poly Holding acquired two three-storey Burwood Highway office buildings in Forest Hill, on a 2.62ha block opposite Tally Ho Business Park, for $45.85 million.

The property is next to the 5.68ha Hewlett Packard office campus site that Poly purchased last year for $88 million.

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.