Weekly Wrap

Fitzroys Weekly Wrap - 23rd August 2019

Posted on 23rd August 2019

000 Retail 05

6 Garden Street, South Yarra
A private investor paid $2.765 million at a 5.7% yield for the 256sqm ground floor space, within Dahua Group’s recently completed Noir development. The property is leased to Orange Theory Fitness on a 10+5+5-year deal returning $160,000pa.

Shop 3 and Shop 5, 33 Flemington Road, North Melbourne
UAG Group’s Nicole Chow divested adjoining shops at the base of the mixed-use tower opposite Melbourne’s hospitals precinct. The 127sqm Shop 3 is leased to The Rice Cooker until 2021 and sold for $1.6 million at a 4.82% yield, and Shop 5, of 120sqm, is leased to Domino’s Pizza on an 8-year lease and sold for $1.66 million at a 4.38% yield.

253 High Street, Ashburton
A local investor paid $1.77 million for the 167sqm 2-level building at a 3.9% yield. The building is leased to women’s fashion shop Black Pepper on the ground floor and a health and beauty salon on the first floor.

344 Belgrave-Gembrook Road, Emerald
The 203sqm NAB branch sold for $1.71 million at a 5.9% yield, with a renewed lease of 3.5 years plus options.

9 Inkerman Street, St Kilda
A Sydney buyer paid $1.1 million for the 130sqm premises of pizza restaurant Mr Wolf.

1135 Burke Road, Kew
A private investor bought the 203sqm shop for $1.025 million, at a 4.1% yield with a lease to Mylyn Restaurant.

42-44 Copernicus Crescent, Bundoora
The 129sqm shop, leased to Sijori Malay Eatery, sold for $945,000 at a 6.3% yield.

123-127 High Street, Kangaroo Flat
An investor paid $511,000 for the vacant 178sqm building, which is on an 889sqm site zoned Commercial 1.

525-527 Melton Highway, Sydenham
Liberty Oil leased the former Caltex petrol station at $270,000pa.

470 Collins Street, Melbourne
Noosa-based health food business Jungle & Co leased the 52sqm space on a 3+3-year deal at $76,000pa.

441 Malvern Road, South Yarra
Collective Australia leased the 630sqm ground floor space on a 5-year deal at $340,000pa.

Suite 2, 13-15 Hardware Lane, Prahran
A Japanese beauty therapy signed a 3-year lease over the 63sqm level 2 space at $40,000pa.

14 Paisley Street, Footscray
The Mist Factory is opening its second store after signing a 3+3-year lease over the 100sqm shop at $420/sqm.

293-295 Canterbury Road, Forest Hill
Asian supermarket KFL Supermarket leased the single-level 846sqm showroom and warehouse.

000 Offices 05

163 Eastern Rd, South Melbourne

Finance broker GMD Finance inked a 7+3-year lease over the whole 7th floor of 320sqm at $190,000pa.

160 Queen St, Melbourne
Medical informatics start-up Summatix signed a 3-year lease for the 245sqm office on level 5 at $550/sqm.

000Industrial 05

24 Jayco Drive, Dandenong South
The industrial facility sold for $5.025 million, with a lease returning $280,000.

19 Darby Way, Dandenong South
Local developer Poplar Constructions sold the 1,950sqm facility to a private investor for $3.725 million, with a lease to West Dairy that returns $197,527pa.

60 South Park Drive, Dandenong South
A pharmaceutical company leased the temperature-controlled 10,998sqm facility for 5 years at $98.90 per sqm.

1 Wurundjeri Drive, Epping
A beverage manufacturer signed a 5-year lease at $190-$200/sqm for the office and warehouse facility, which had been purpose built for Hydralyte to produce pharmaceutical-grade liquids and ice-block products.

000 Development 05

1887-1889 Dandenong Road, Oakleigh
The 3,000sqm site sold for $5.75 million. It is zoned General Residential 2 and has a combined 129m of dual frontage to Dandenong and Clayton Roads.

000 Talking Points 05

Church Street Centrepiece Investment
Local, interstate and offshore investors are expected to compete for the NAB bank branch premises in Church Street, Brighton, which will represent a generational chance to secure a retail investment in the absolute prime of the prized blue-ribbon shopping strip.

Fitzroys agents Chris James and Mark Talbot are marketing 35 Church Street on behalf of private owners that have held the site for 23 years. The property goes to auction on Thursday, 29th August with interest expected to be around $6 million.

On a 288sqm site, the property has an 8.5-metre high-exposure frontage to Church Street. ASX-listed tenant NAB has a long-term lease over the property that is presently returning $214,470 per annum plus outgoings including land tax.

The property is positioned within the most highly sought-after and tightly-held section of Church Street, between Carpenter and St Andrews Streets, which is currently experiencing a near record-low 0% vacancy. Neighbouring tenants include a number of Australia’s leading high-end retailers in Country Road, Mecca, Scanlan Theodore, Seed Heritage, Bed Bath N Table, Sportscraft, Husk and Saba while the famous Dendy cinema complex is opposite.

“Church Street has retained its reputation as Melbourne’s best-performing retail strip, consistently boasting the state’s lowest vacancy rates,” James said.

“Opportunities for investors to acquire a Church Street, Brighton asset are rare, let alone a double fronted freehold of this nature and attract fierce competition from across Australia and offshore, reflecting the tightly held nature of the strip, its constrained supply, and positioning within one of Melbourne’s most affluent and established consumer catchments.”

Talbot said Church Street, Brighton’s immediate catchment has been bolstered with the introduction of medium-density residential developments in what is broadly a low-rise suburb, while the suburb is home to a number of highly sought after private schools.

“With recent cuts to the official interest rate, it is an ideal time for investors to secure strong income-producing asset.”

Fitzroys sold the two-level, 110 sqm building home stationery company Smiggle, part of major retail player Solomon Lew’s ASX-listed Premier Investments, at 67 Church Street last year for $2.41 million, at a yield of 3.2%.

Strong Fundamentals Spur Suburban Office Building Sales
Low vacancies and increasing rents and land values have contributed to a string of Melbourne suburban office assets changing hands.

In South Melbourne, Rescom Mortgages sold 100 Park St, which it has occupied for 20 years, to a local investor for $8.088 million. The three-level building has 1,369sqm of office space and ground floor retail and is on a 595sqm corner site. Nearby, Valeo Construction’s Dimitrios Tzouvelis sold the vacant two-level building at 34 Eastern Road for around $10 million to developer H.CO Property.

Further out from the city, supermarket owners Leo and Rose Blake sold 3-7 Hamilton Street in Mont Albert for around $18 million, reportedly to an offshoot of Ballarat builder H. Troon, and in Malvern East, Momentum Wealth Management Group director Paul Huggins sold the two-level corner office building at 207-213 Waverley Road, the long-term headquarters of Dennis Family Homes, for circa $13 million.

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.