Weekly Wrap

Fitzroys Weekly Wrap - 27th May 2022 copy

Posted on 27th May 2022

74 Station Street, Fairfield

Offered for the first time in over 62 years, the vacant 325sqm building on a 511sqm Commercial 1-zoned site sold for an undisclosed price to a local private investor.

4B & 4C Izett Street, Prahran

The owners of Babble Bar & Café, who recently signed a 5 5-year lease over the 115sqm building, bought the property for $2.2 million, reflecting a 3.97% yield

4/183 Fitzroy Street, St Kilda

An investor bought the 140sqm building for over $1.4 million on a 4.2% yield. It is leased to a specialty coffee and food tenant on a renewed 4 4 4-year term, returning $60,000pa plus GST.

104B Gavan Street, Bright

The 140sqm building leased to Bendigo Bank on a 5-year lease plus options sold for $940,000 on a 4.28% yield. It returns $40,200pa plus GST.

160 Queen Street, Melbourne
Computing technology company NW Computing leased the fitted-out 584sqm space on level 11 for 5 years at $670/sqm.

12 Koornang Road, Scoresby
The vacant 6,152sqm office and warehouse sold for $16.8 million. It is on an 8,881sqm site zoned Commercial 2 and can be subdivided into 2 tenancies.

105 Yale Drive, Epping

The vacant 2,474sqm industrial block sold for $2.65 million.

3/32 Law Court, Sunshine West

The 172sqm warehouse with a 50sqm mezzanine and 2 on-site car parks sold for $460,000.

422-430 Johnston Street, Abbotsford
The 5 owners of an Abbotsford 1980s strata showroom building have combined to sell the property for more than $22 million to Geoff Brady’s Amber Property Group. The 2,428sqm site is zoned Commercial 1 and is likely to be redeveloped when the final unit becomes vacant in 2025.

84 & 86 Yarra Street, Geelong

Geelong-based developer Batman Group bought the combined 634sqm Activity Centre-zoned site for $2.5 million. It comprises 2 shops, home to Chinese restaurant Palace of the Orient and Pizzeria Adamo, returning $88,500pa.

2-4 Warrandyte Road, Ringwood

A developer bought the 1,051sqm parcel opposite Eastland for $3,862,500 with plans for a multi-level mixed-use development. It has potential for an eight-storey, 28.5m-high development.

Singapore-Listed Trust Buys Mount Waverley Office Building
Singapore-listed Frasers Logistics & Commercial Trust has bought a fully-leased A-grade Mount Waverley office building in the Monash University precinct for $60.25 million, on a circa 5% yield.

Completed in 2016, the 7,297sqm building comprises 4 levels of offices above ground floor retail tenancies. It is leased to 9 tenants including General Mills, Bank of Melbourne and Sushi Sushi with a weighted average lease expiry of around 5 years.

The vendor was the Future Family Office, an investment platform run by the founders of carsales.com.

Across the south-east, Salta Properties is adding a $90 million office building to its Nexus Corporate Park in Mulgrave, and Pellicano is developing a $260 million mixed-use project in Moorabbin with 5 office towers.

East Melbourne Office Sells for $25m
The Marlion House office building in East Melbourne’s Jolimont precinct has been sold by the Krongold family for around $25 million.

The Krongold family’s building company is headquartered in the 5-level building at 33-41 Agnes Street, which returns about $1.04 million, with the sale price reflecting a circa 4-4.5% yield.

The 1,828sqm redeveloped warehouse features a rooftop with views to the Fitzroy Gardens and to the MCG, and is on a 763sqm site fronting Palmer Street.

It was bought by the Herald & Weekly Times in 1926 from tea merchants Griffiths Bros, with the main warehouse used for its trucks and cars. The building was converted to offices in 1988 and bought by the Krongold family the following year for $3.6 million. It was further redeveloped about 7 years ago.

$1.2b of Shopping Centre Redevelopments Approved
Major shopping centre landlord Vicinity Centres has secured approval for the $700 million first stage of its redevelopment of Box Hill Central.

The project includes a residential building that will be home to more than 600 residents, commercial office space for 2,000 workers and a public square.

Ultimately, Vicinity Centres is planning to have 260,000sqm of mixed-use real estate over 10 years across the redeveloped shopping centre and its 5.5ha land parcel. Retail holdings would be consolidated into one land parcel on the southern side, and the northern side would have offices, a hotel, and up to 1,900 dwellings.
Vicinity last year struck an agreement with co-working operator Hub Australia for a 4,100sqm 4-storey co-working space at Box Hill Central.

Meanwhile, Time & Place has been given the green light for a $500 million mixed-use project at Northcote Plaza.

The project includes 4 residential towers with more than 600 apartments above a podium across the southern end of the plaza, 6,500sqm of new retail space, and a standalone office tower on the 15,000sqm site’s north west.

Time & Place bought the site from LAS Group last year for $60 million.

MAB Corp Plans $400m Industrial Estate
Developer MAB Corp has bought a 45ha land parcel in Cranbourne East with plans to develop 180,000sqm of industrial and logistics facilities with an end value of more than $400 million.

MAB paid around $75 million for the 2 adjoining sites fronting Thompsons Road. They comprise the 32.6ha farm at 1580 Thompsons Road, bought from the Cuteri family, and the smaller 12.2ha adjoining site at 1550 Thompsons Road which includes a Boral quarry, and was acquired from a company associated with the private investment arm of the Myer family, founders of the Myer department store.

Both sites are within the 305ha Croskell Precinct, a rural area that is likely to be rezoned for commercial industrial and residential use by about 2025.

They are also close to industrial developments along the Western Port Highway, with major groups including Logos, Goodman Group and ESR active nearby.

Ryman Healthcare Plans $350m Aged Care Village
New Zealand-listed retirement village operator, Ryman Healthcare, has paid $48.2 million for a 2.56ha site in Coburg North, where it is planning a $350 million retirement village.

The future village at 14-22 Gaffney Street– next to Batman Station and close to Sydney Road – will comprise independent living apartments, a full aged care centre, and specialist on-site dementia care, and also include a café, bar, gym, cinema, indoor pool, and hair and beauty salons. There will also be provision of new commercial space along Gaffney Street.

Ryman has invested more than $1.2 billion in Victoria since opening its 1st Australian village in Melbourne 8 years ago in Wheelers Hill.

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 2021 Fitzroys.