Weekly Wrap

Fitzroys Weekly Wrap - 19th August 2022

Posted on 19th August 2022

835 High Street, Armadale

The 111sqm ground-floor strata shop sold for $1.98 million, on a 3.88% yield. It is within the recently-completed apartment building developed by Moda and is leased to patisserie Lune, which has just opened with a new 10-year lease.

2/1 Webster Way, Pakenham

An investor bought the 816sqm building home to Pakenham Fruit & Veg Market for $1.705 million, on a 4.61% yield. It has a 15-year lease to 2032 plus options to 2042 returning $78,586 plus GST.

4/78 Horne Street, Sunbury

The 443sqm showroom sold for $2.018 million on a 5.18% yield, with a brand new 7-year lease to Wattyl Paints.

506 Lygon Street, Brunswick East

A photographer bought the vacant 2-level, 163sqm shop and dwelling for $1.3 million to use for their studio and residence.

Shop 4/335 Harvest Home Road, Epping

The 100sqm shop home to Augustus Gelatery sold for $910,000, on a 4.4% yield. It has a new 7-year lease plus options to 2043 returning $40,000pa plus GST.

R2/34 Margaret Street, Moonee Ponds

A local investor bought the 75sqm corner space for $507,000, on a 5.99% yield. It is leased to a boutique real estate agency.

209 Glenroy Road, Glenroy
The dual-level office space was leased for $65,000 per annum plus outgoings, on a $310/sqm building rate. It includes 6 off-street secure car parks.

463-469 Cowra Avenue, Mildura
The 3,476sqm warehouse on a 6,700sqm site sold for $5.075 million, on a 5.48% yield. The tenant, a wholly-owned subsidiary of San Miguel Corporation, has a newly renewed 5-year lease plus options.

30 Jesica Road, Campbellfield

The 1,015sqm tilt slab clear-span warehouse with a 2-level office sold for $2.57 million.

505 Warrigal Road, Moorabbin

Zoned Industrial 1, the 1,232sqm corner site sold to an owner-occupier for $2.1 million.

23-35 Hanover Street, Oakleigh
The 2-level office building and an adjoining medical building totalling 1,637sqm, on a 1,996sqm site zoned Commercial 1, sold for more than $10 million.

238 Springvale Road, Glen Waverley

The 220sqm building, leased to a longstanding clinic specialising in women’s health and IVF, sold for $3.95 million on a 4.92% yield. It is on a 573sqm corner directly opposite The Glen shopping centre and has a new 5-year lease plus options.

7-15 Rossmoyne Street, Thornbury

The Uniting Church sold the 1,780sqm site with 2 heritage-listed church buildings and a 4-bedroom house to the Presbyterian Church for $3.6 million.

Charter Hall Eyes Development Potential of Collins Place
ASX-listed Charter Hall has bought the freehold of Collins Place, in the Melbourne CBD’s east end, for $65 million in a deal that may open the site up for future development.

Collins Place is a 13,350sqm site with 140,000sqm of floor space across towers at 35 and 55 Collins Street, including 100,000sqm of A-grade office space and the Sofitel Hotel. It has 470m of street frontages to Collins Street, Exhibition Street and Flinders Lane.

The circa $1.8 billion leasehold of Collins Place is held by AMP Capital Wholesale Office Fund, management of which is set to transfer to Mirvac.

Also in the east end, Charter Hall has just bought a 50% share in the $2.1 billion Southern Cross tower, and owns the Wesley precinct with towers at 130, 140 and 150 Lonsdale Street, and the Telstra headquarters building at 242 Exhibition Street.

At the other end of the city, Charter Hall is currently developing the $1.5 billion dual-tower 555 Collins Street project, which has secured major pre-commitments from Amazon and Aware Super, and which Singapore’s sovereign wealth fund has just bought into. That site has a 24:1 plot ratio, while the Collins Place site currently has a 10:1 plot ratio.

Hong Kong Power Tools Company Leases 74,200sqm Distribution Centre
Hong Kong-listed power tools giant Techtonic Industries has pre-committed to a 74,200sqm distribution centre at the Melbourne Airport business park.

The $130 million automated facility will be the largest warehouse within the estate, which at 410ha is the biggest in the southern hemisphere. Other tenants include Toll, TNT, Porsche, World Couriers and Nippon Express.

Rents are circa $90/sqm.

Caravan Holiday Demand Drives Industrial Leasing Enquiry
Industrial sites in Melbourne’s northern suburbs continue to be snapped up quickly, with the caravan manufacturing industry a prominent player as Australians take to the roads to explore the country in greater numbers.

Fitzroys’ Deanna Zamora has leased 26 Colbert Road in Campbellfield to a tenant in the caravan manufacturing industry, on a 5-year deal at $70,000pa plus outgoings and GST.

The 687sqm facility is on an Industrial 1-zoned site that offers easy access to Sydney Road, the Hume Freeway and M80 Ring Road.

Zamora said enquiry came from other businesses associated with caravan manufacturers, automotive industry tenants, manufacturer, building supplies businesses, and importers and exporters.

“We had an overwhelming response to the campaign, with close to 100 enquiries. The property was leased and occupied within 2 weeks of the beginning of the campaign.”

Fitzroys has also just leased 5/220 Barry Road in Campbellfield to an expanding company in the caravan industry looking to add to their existing premises nearby, in a deal that resulted in no downtime for the landlord.

“Caravan manufacturing businesses have been a growing source of enquiry in the industrial leasing market,” Zamora said.

“More people have been hitting the roads throughout the COVID period for a getaway. Flexible working has further increased the ability of Australians to travel with their caravans more often and find a sense of freedom,” Zamora said.

According to the Australian Caravan Club, the surge in caravans, camper trailers and motorhomes on the roads throughout the pandemic amounted to 1.7 million RV movements over this year’s Easter weekend.

Zamora said industrial vacancies across Melbourne remain at historic lows, with leasing outpacing long-term averages.

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.