Weekly Wrap

Fitzroys Weekly Wrap - 18th October 2019

Posted on 18th October 2019

000 Retail 05

760-762 Barwon Heads Road, Armstrong Creek
An investor bought the 7-Eleven outlet, on a 2,300sqm site, for $5.72 million at a 5.41% yield. The convenience store has a 15-year lease.

16 Katherine Place, Melbourne
A local investor bought the 174sqm CBD shop for $2.602 million, with a 6 5 5-year lease to 5 and Dime Bagels returning $120,848pa.

108 Elizabeth Street, Melbourne
Travel Money signed a long-term lease for the 80sqm space in the Carnegie and Brashs buildings at around $420,000pa.

301 Swanston Street, Melbourne
David’s Hot Pot leased the 113sqm shop at $410,000pa for its 4th CBD site.

000 Offices 05

Level 22, 357 Collins Street, Melbourne
Online restaurant reservation company OpenTable signed a 5-year lease over 770sqm.

000Industrial 05

1-5 Lakeside Drive, Dingley
Private developer HB+B bought the 39,769sqm brownfield development site for $19.75 million from logistics platform ESR. The property has 3 warehouses of a combined 17,431sqm.

51 Burns Road, Altona
A private investor bought the 3,800 sqm warehouse, on a 6,650sqm site, for $5.3 million. It is leased to Plantic and returns $368,020pa net.

1858 Princes Highway, Clayton
The Coffee Machine Warehouse paid $2.05 million for the renovated 795sqm showroom and warehouse building, with 6 on-site parking spaces.

70 Pentland Parade, Yarraville
Footscray Angling Club sold its 180sqm clubroom to a local investor for $725,000.

112 Fairbairn Road, Sunshine West
Trade company Bapcor Limited leased the 965sqm office and warehouse for 3 years at $100/sqm plus outgoings and GST.

Unit 1-4, 536-546 Clayton Road, Clayton South
The 4 showroom and warehouse units, each of 354sqm with mezzanine space, were leased an average rate of $152/sqm to a fitness centre, swim school, marble supplier and industrial equipment supplier.

000 Development 05

203-207 Nepean Highway, Gardenvale
Coles sold the undeveloped 1,123sqm site over 3 titles to a private developer for $3.65 million.

45 Mundy Road, Sunbury
A Malaysian group bought the 63.44ha site of the Pitruzzello Estate olive grove and vineyard, which is located within a Green Wedge zone.

000 Talking Points 05

Rejuvenation of Iconic Melbourne Dining Strip
The revitalisation of Lygon Street, Carlton has taken another step, with young talent emerging from popular restaurant and bar Longsong set to open a new modern Asian cuisine venture in the prime of the iconic hospitality and lifestyle strip.

Chris James of Fitzroys negotiated the 5-year lease with options at 263 Lygon Street on behalf of a private owner. The deal was struck at $83,000pa plus outgoings and GST, and the new venture will host diners from the 95sqm ground floor of the building.

The partners of the new venture, Lagoon Dining, were key talent involved with CBD venue Longsong. They include Chris Lerch, venue manager of Longsong and former manager of Flinders Street fine dining spot Ezard, and Longsong head chef Ned Trumble.

“We’ve seen a new generation of bar and restaurant ventures add a fresh twist to Lygon Street and Carlton’s hospitality scene,” James said.

“This venture will bring modern Asian cuisine to the heart of Lygon Street, near D.O.C. Espresso and The University Café, further enhancing the mix of the iconic Italian influence synonymous with Lygon Street and Carlton and a new breed of hospitality offerings that are revitalising the strip.”

Other recent entrants include Heart Attack and Vine, Israeli-influenced vegetarian pub Green Man’s Arms, the recently re-opened King & Godfree building, wine bar Lord Lygon and Hakata Gensuke, while in the immediate surrounds are The Carlton Wine Room and DOC Pizza & Mozzarella Bar.

James said the long-term lease in the prime section of the strip reflects the operators’ confidence in the transformation of Lygon Street.

“Melburnians are living in and going out across the inner suburbs in growing numbers and Carlton is no exception, having also seen an influx of young professionals and students living in the immediate vicinity.

“This has added huge depth to the immediate catchment of Melbourne’s best-known restaurant strip, and demand is growing for more distinct offerings that have enhanced its unique character.”

Smaller-Format Supermarkets Sell on Both Sides of The Yarra
Woolworths Metro supermarkets in Abbotsford and St Kilda have changed hands, as have standalone Woolworths and Aldi supermarkets in regional Victoria.

A Sydney-based investor bought the 1,574sqm Woolworths Metro at 64 Fitzroy Street in St Kilda for around $8 million at a sub-6% yield, with a lease running until 2027. The Abbotsford property is at the base of the new Pace of Abbotsford apartment project and sold for $4.68 million, at a 4.93% net yield and with a 7-year lease.

A 3,143qm standalone Woolworths supermarket in Leongatha sold for $14.3 million at a 5.32% yield, with 9 years to run on a 20-year lease. It is on a 3,267sqm site with 142 parking spaces.

East of Melbourne, an Aldi supermarket in Seville sold for $8.02 million at a 5.98% yield.

GP Sells Cranbourne North Medical Clinic

The Thompson Road Clinic at 2 Woodbine Road sold to investor and horse racing identity Ken Biddick for around $25 million, at a passing yield of a little over 5%.

The vendor was GP Leon Shapero, who developed the 2-level, 1,400sqm clinic in 1987 and remains an occupant. Thompson Road Clinic sold with a 15-year triple-net lease and is tenanted by other GPs, a pharmacy, radiologist and other specialists

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.