Weekly Wrap

Fitzroys Weekly Wrap - 11th October 2019

Posted on 11th October 2019

000 Retail 05

60 Hardware Lane, Melbourne
A local private investor bought the 3-level Victorian warehouse for $4.805 million at a 2.9% yield. The 201sqm property was owned by master jeweller Gary Bradley and is leased to Sicilian seafood restaurant Il Nostro Posto across the basement and first floor, and Le Beau Monde day spa upstairs.

116 Martin Street, Brighton
The 189sqm building sold for $2.377 million with a 10-year lease to St Martin’s Café, returning $95,228pa net plus outgoings and GST.

1234 High Street, Armadale
An investor bought the 139sqm shop for $1.4 million at a 4.5% yield, with a 3+3-year lease to The Paper Empire.

Shop 4, 33 Flemington Road, North Melbourne
A local investor bought the 132sqm shop, leased to a florist, for $1.6 million at a 3.2% yield.

000 Offices 05

5-7 Guest Street, Hawthorn
A local family bought the 1,039sqm site for $8.35 million at a 4.33% yield. It comprises a 2-level, 950sqm building and 19 parking spaces, and is leased to DBM Consultants with a new 5+5+5-year lease that returns $362,000pa net.

1328-1330 Malvern Road, Malvern
Accounting firm Ibbotson & Moscatelli sold its former 2-level offices of 331sqm, on a 253sqm corner site, for $3.01 million to a private investor.

13-15 Cobden Street, North Melbourne
A local private investor bought the 2-level brick building on a corner site of 94sqm for $2.050 million.

Level 7, 278 Collins Street, Melbourne
Cloud consulting and Amazon Web Services migrations firm Mantalus has leased the 350sqm self-contained whole floor for 3+3 years at $185,000pa gross plus GST.

Studio 4, 30 Wangaratta Street, Richmond
A film production company leased the 160sqm studio and office space for 3+3 years at $60,000pa net for a cooking show.

000Industrial 05

1/24 Longstaff Road, Bayswater
An owner occupier bought the vacant 1,584sqm office and warehouse for $2.4 million.

47 Huntingdale Road, Burwood
The vacant 468sqm office and warehouse sold for $1.52 million.

45 Brady Street, South Melbourne
Luxury fashion retailer Harrolds signed a 10-year lease for 940sqm office and warehouse at $160,000pa.

17 King Street, Blackburn
No. 1 Vitamins signed a 3-year lease over the 677sqm property at $142/sqm net.

56 Toll Drive, Altona
ASX-listed Asaleo Care, manufacturers of Sorbent and Libra, leased the 16,000sqm warehouse for 5 years at $78/sqm.

000 Development 05

24 Groom Street, Clifton Hill
A developer paid $4.8 million for the 3-level 925sqm brick building, on a 340sqm corner site for a residential conversion. Built in 1911, it was used by the Department of Defence as home of the Commonwealth Harness, Saddlery and Leather Accoutrements Factory to manufacture equipment for the armed forces. It has since been used as a manufacturing facility for Bourke & Cooke boots, Zig Zag Paper’s roll-your-own cigarette papers, and National Can Industries for its tin can packaging, and then as its corporate office.

000 Specialised 05

14 Simla Street, Mitcham
Gloryland Childcare and Kindergarten signed a 15-year lease for the 1,495sqm site, which has a licence for 138 places.

000 Talking Points 05

Home of High Profile South Yarra Club Sells
A local private investor has bought the South Yarra site of well-known ritzy club and functions venue The Emerson for around $11 million.

The 3-level, 1,434 sqm building, on a 530sqm site at 141-145 Commercial Road, sold for the first time since being redeveloped in 2012 and reopening in its current guise in 2013. The vendor was a Singapore-based investor.

Former North Melbourne players Glenn Archer and Leigh Colbert and their business partners operate the venue, which has a late-night liquor licence and capacity for 675 patrons, and a 10-year lease with 5-year options.

Different spaces within the building include The Emerson Club, VIP Cocktail Bar and Lounge and The Emerson Rooftop. Before its redevelopment, the site was home to high-profile club The Market.

Ascendas motors into Mulgrave: Singapore-based Ascendas REIT has bought the Nissan national headquarters building for $110.9 million, at a 5.7% yield, in the latest Melbourne suburban office deal.

Nissan will occupy 65% of the 8-level, 17,000sqm building that is currently under construction, and which forms part of ESR and Frasers Property Australia’s $400 million business park at 254 Wellington Road in Mulgrave. The business park is spread across 4.67 hectares and has planning approval for 60,000sqm of commercial space, 2,497sqm of retail, and secure parking spaces.

In other recent Melbourne suburban office deals, the Zagame family bought the Hawthorn building at 2 Luton Lane, fully leased to Swinburne University, for $55 million at a 5.3% yield, and a high-net-worth Hong Kong-based investor paid around $30 million for the headquarters of Dulux at around 6%.

Distinctive CBD Building Fetches $52 Million
Swiss-based asset and fund manager Fidinam Group has bought the 12-storey art deco Swann House building at 22 William Street in the Melbourne CBD on behalf of a client at a circa 2.5% yield.

Vendor Orion International Group bought the building 5 years ago for $21.6 million.

Swann House was constructed in 1922, on the site of Melbourne’s first hotel, to be the headquarters of the State Electricity Commission.

Along the city fringe, Guangdong Carrington Real Estate Company has just bought the 3-level building of 2,006 sqm at 85 Coventry Street in Southbank for more than $15 million from Chinese developer R & Y. The 976 sqm site has a permit for a 19-level apartment building.

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.