Weekly Wrap

Fitzroys Weekly Wrap - 21st June 2019

Posted on 21st June 2019

000 Retail 05

947 Burke Road, Camberwell
The shop and dwelling sold at a record land rate of more than $17,000/sqm which equated to a 4.3% yield on the net passing income. The ground floor is leased to Classique Nail Spa on a 5+5-year term and the first floor on a 2 year term to a residential tenant.

150-154 Glenferrie Road, Malvern
The two-level, double fronted building of 569sqm sold for $6.8 million, with leases to ANZ Bank of 7 years, and Sushi Gallery and JT’s CrossFit Training studio for a combined return of $311,000pa net. The 560sqm site is zoned Commercial 1.

308 Carlisle Street, Balaclava
Start-up juice company Does It Fit committed to a long-term deal for the 106sqm space within Urban DC’s No. 308 mixed-use development, and will pay $65,000pa net.

804 Heidelberg Road, Alphington
Disability, mental health and NDIS services provider Guidestar Life leased the two remaining ground floor retail spaces of a combined 177sqm of the new Editor Apartments development. It signed a 4 3-year deal at $66,000pa net, while a Collins St dentist has leased the other unit of 127sqm to establish a local practice.

237-239 Nepean Highway, Gardenvale
Yes Fitness 24/7 Gym leased the 1,131sqm property on a 10-year term.

1 Nepean Highway, Mentone
Car dealership LDV is relocating down the highway from Brighton East, agreeing to pay a reported rate of between $230-$290/sqm.

4/286 Maroondah Highway, Chirnside Park
Lombard The Paper People signed a 7-year deal over the 1,093sqm showroom at $230/sqm gross.

000 Offices 05

317/87 Gladstone Street, South Melbourne
Corporate catering, and venue and events management company GEMA Group acquired the 105sqm New York-style office in South Melbourne for their new head office, paying $650,000 to previous owner occupier Brandbuild.

Level 11, 140 Bourke Street, Melbourne
HGC Administration services sold the 620sqm penthouse office floor on level 11, as well as the rooftop, for $6.975 million. They sit atop the 14-level former Hoyts complex, completed in 1969, which was Australia’s first multi-screen cinema and in recent years converted into strata office and retail.

2 Macquarie Street, South Yarra
Ben Buxton sold the converted 473sqm two-level warehouse, which he had used for his graphic design studio, for $3.13 million. The building is on a 306qm site that has five parking spaces and Activity Centre Zoning.

89-91 City Road, Southbank
Healthcare tech company Emprevo is moving from Hawthorn East to the 324sqm level 1 office, and will pay $390/sqm gross over 5 years.

000Industrial 05

114 Gaffney Street, Coburg North
An investor paid $1.425 million for the 330sqm warehouse on a 509sqm corner site that is zoned Industrial 3.

50 Rushdale Street, Knoxfield
Investors picked up the respective office and warehouse units at more than $1,300/sqm and at circa 5.2% yields. Lot 3 sold for $315,000, and Lot 4 for $320,000.

2139 Princes Highway, Clayton
A local developer bought the Commercial 2-zoned 1,846sqm site, which has a 486sqm office and showroom building, at a land rate of $1,300/sqm.

73 Westminster Street, Oakleigh
The 450sqm office and warehouse property, on a 730sqm site, sold for $1.25 million with a 3+3-year lease to a landscaping company returning $71,683pa net.

8 Sloane Street, Maribyrnong
Training Ahead Australia leased part of the two-level office and warehouse building on a 3-year deal at $120,000pa. The property was formerly the headquarters of Sunbeam and is also partially tenanted by The Good Guys, which has its Maribyrnong outlet next door.

000 Development 05

7-11 Phoenix Street, South Yarra
The long-time home home of photography studio 7 Phoenix Studios, and Parker Pens before that, sold for $2.405 million with vacant possession. An owner occupier will convert the 390sqm brick building into a residence.

000 Talking Points 05

More CBD Buildings Changing Hands

A group of investors acquired the 965sqm three-level Chinatown building for $6.85 million in the latest sub-$20 million CBD transaction, with hospitality venues continuing to feature prominently.

The 26 Corrs Lane property is home to Sichuan House on the ground floor, Fukuryu Ramen above and nightclub Playground in the basement level, and returns around $225,700pa.

In recent weeks, co-founder of construction software firm Aconex, Rob Phillpot, acquired adjoining city buildings for a combined $22.35 million. The three-level building at 39-41 Little Collins Street is leased to Italian restaurant Lipino on the ground floor, and the two-level building at 37 Little Collins Street is home to tapas venue Bar Lourinha.

That followed the premises of Chinatown restaurant Shark Fin House at 131-135 Little Bourke Street selling for $14.5 million to Malaysia-based MKS Empire.

Southern Indoor Bowls Club Sells Up

A high-end residential development is likely to take the place of Melbourne’s second-last indoor lawn bowls venue, after a local developer paid $10.261 million to purchase the Southern Indoor Bowls Club in Caulfield.

The 2,295sqm site at 348-354 Hawthorn Road has been home to the club for 51 years, but developments in drainage systems and synthetic grasses have reduced the need for indoor lawns and prompted the club to sell off its premises. Funds will be directed to local lawn bowls clubs, and it the deal leaves Brighton Bowling Club as Melbourne’s last remaining indoor venue.

The Caulfield site’s existing three-level building was previously home to the Camden Theatre.

Owners Combine For St Kilda Road Apartment Block Site

A 1960s apartment block on the corner of St Kilda Road and Alma Road has sold to a developer from Melbourne’s south-east for $11.5 million, after all 21 strata owners agreed to take the property to market.

The 1,070sqm site, addressed 14 Alma Road, is zoned Commercial 1 and has 21 one-bedroom apartments of around 35sqm, and traded with approval for a 10-level building of 35m in height.

Hengyi Takes Historic Mt Eliza Site

Chinese-backed developer Hengyi has paid $17 million for the 3.41ha former hospital and Beachleigh Estate site in Mt Eliza on the Mornington Peninsula.

Beachleigh Estate was built in 1878 as a private residence overlooking Canadian Bay, and with the addition of further buildings the site became the Orthopaedic Branch of the Royal Children’s Hospital in the interwar years.

It has since been used an aged care facility and administration site for Peninsula Health.

The vendors were Peninsula Health and the Victorian Department of Health and Services.

Hengyi is in the final stages of construction of the 72-storey, 1,000-plus apartment Swanston Central development on the former Carlton and United Breweries site.

Disclosure: The weekly 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.