Weekly Wrap

Fitzroys Weekly Wrap - 6th September 2019

Posted on 06th September 2019

82-86 Melville Road & 250 Hope Street, Brunswick West
A local investor bought the triple-fronted 531sqm site, zoned Commercial 1, for $1.89 million at a 4.6% yield.

Shop 30, 3 Separation Street, Northcote
An investor bought the 98sqm shop within Northcote Plaza for $1 million at a 4.7% yield, with a 3-year lease to Plaza Deli.

242 Union Road, Ascot Vale
The 131sqm ground floor Bendigo Bank branch premises sold for $935,000 at a 4.85% yield, with a 4-year lease.

265 Clarendon Street, South Melbourne
Max Tsang of Mahjong, on St Kilda’s Fitzroy Street, leased the 39sqm space at shop G08 within the Clarendon Centre for his new Hong Kong-style soup bomb concept Miss China, in a 6-year deal at $65,000pa.

338 Brunswick Street, Fitzroy
Builder Minicon Construction leased the 2-level building on a short-term deal at $70,000pa net.

16 Hill Street, Cremorne
Peter Quattro bought the two-level office building of 189sqm for $1.5 million from previous owner occupier, media and arts industry accountant Alan Dredge.

719 High Street, Armadale
The vacant 295sqm 2-level office building sold for $1.55 million.

65A Victor Crescent, Narre Warren
MAB Corporation sold the 229sqm strata office, leased to a boutique mortgage broker, for $1.24 million at a 6.5% yield.

454-470 Racecourse Road, Flemington
The 1,152sqm site has a 190sqm building and will be used as a display and sales centre for a local residential development, after being leased for 2 years plus options at $120,000pa.

3 Bond Street, South Yarra
Overdose Digital Australia signed a 3-year lease at $210,000pa for the 2-level 476sqm converted warehouse.

88 Agar Street, Truganina
St Albans-based Pentacostal Transform Church paid $1.67 million for the 1,071sqm office and warehouse in the Agar Industrial Estate to establish a new place of worship.

20 Butler Way, Tullamarine
An owner occupier bought the 370sqm modern office and warehouse building for $1.05 million.

47-63 Remington Drive, Dandenong South
Transport company Geelong Flyer leased the 1,672sqm facility for 5 years at $85/sqm.

82-88 Hume Highway, Somerton
A building material supplier leased the 2,755sqm office and warehouse at $230,000pa net plus outgoings and GST.

925 Whitehorse Road, Box Hill
Developer/investor APH Australia paid $13 million for the Chemist Warehouse occupied building of 346sqm. Zoned Commercial 1, the 920sqm site is leased until the end of 2022 has a development potential of up to 20 levels, and is next to the Australian Tax Office building.

488-490 Swan Street, Richmond
An owner occupier bought the 1,165sqm showroom and warehouse site for around $10 million. Austral Bricks has a short-term lease that ends in September 2020.

14-16 Simla Street, Mitcham
A Chinese investor paid $7.1 million off-the-plan to Sector Property Group for the strata-titled childcare centre, which will open in mid-2020 with a commencing rent of $545,000pa plus outgoings.

1210-1212 Dandenong Road, Malvern
Inspire Early Leaning leased the multi-level childcare facility, which has a licence for 94 places, for 20 years at $399,500pa.

Church Street Freehold Sold For The First Time In 23 Years
Church Street, Brighton has reinforced its reputation as arguably Melbourne’s – and Australia’s – most prized shopping strip, as fierce competition between local, interstate and offshore investors for the NAB bank branch in the absolute prime section of the strip led to a $6.105 million auction sale.

Fitzroys agents Chris James and Mark Talbot sold 35 Church Street on behalf of private owners, who had held the site for 23 years. A private Melbourne-based investor purchased the property.

On a 288sqm site, the property has an outstanding 8.5-metre high exposure frontage to Church Street. ASX-listed NAB has a long-term lease over the property, and the sale price reflected a sharp 3.5% yield.

“The property represented a generational chance to secure a retail investment in the absolute prime of a blue-ribbon shopping strip, which was reflected in the 100-plus enquiries received from around Australia and offshore,” James said.

“Astute investors are recognising that with recent cuts to the official interest rate, it is an ideal time to secure strong income-producing assets.

“Offshore buyers continue to be drawn to Australia’s safe-haven status. Church Street, Brighton consistently presents the strongest fundamentals for retail property investments, retaining its reputation as Melbourne’s best-performing suburban retail strip, and perhaps in Australia.”

The property is positioned within the most highly sought after and tightly held section of Church Street, between Carpenter and St Andrews Streets.

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.

Talbot said opportunities for investors to acquire a Church Street, Brighton asset are rare, let alone a double fronted freehold of this nature, and the depth of campaign enquiry and strong result reflected the tightly held nature of the strip, its constrained supply, and positioning within one of Melbourne’s most affluent and established consumer catchments.

“The 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,” he said.

“Church Street’s strong reputation and constrained supply will continue to see commercial property tightly held, with a long queue of retailers and operators always seeking space.”

Northcote Plaza Components Change Hands For $60 Million
Private investors have bought the Coles supermarkets and Kmart site, part of of the 18,000sqm strata-titled Northcote Plaza shopping centre.

A local investor bought the larger Coles and Liquorland for $25 million from long-term owners Tynan Nominees, while a developer/investor bought the smaller Coles, formerly a Bi-Lo, and the Kmart for $35 million. The 1-hectare Kmart site will be vacant from November and is likely to be repositioned.

Both sales were struck at sub-5% yields.

Dulux HQ Sells To First-Time Australian Investor

The Dulux headquarters is the latest Melbourne suburban office asset to change hands. A high-net-worth Hong Kong investor has paid $30 million for 1956 Dandenong Road in their first Australian purchase, at a circa-6% yield.

Vendor Salta Properties developed the distinctive 6,000sqm building in 2007 for the paint company, which has 2.5 years left on its lease.

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.