Weekly Wrap

Fitzroys Weekly Wrap - 9th September 2022

Posted on 09th September 2022

609 Keilor Road, Niddrie
A community group paid $2.4 million for the 474sqm office, warehouse and showroom building, on a 584sqm site zoned Industrial 3 with on-site parking, and will use it for their operations and office space.

605 Burwood Highway, Knoxfield
MMEM Group Pty Ltd bought the 1,735sqm office and warehouse for $5.1 million from Retsol Pty Ltd.

20 Dexter Drive, Epping
A developer bought the vacant 1,737sqm corner block, zoned Comprehensive Development and within the Alliance Business Park, for $1.9 million plus GST.

26 Dexter Drive, Epping
Next door, an investor bought the 1,249sqm site for $1.45 million plus GST.

18 Biodiversity Boulevard, Epping
A local caravan manufacturer increasing their footprint in the precinct leased the brand-new industrial facility prior to practical completion at $140/sqm net.


40-46 Cheltenham Road, Dandenong
NECA Education & Careers, a tertiary education, direct employment and career opportunities provider in the electrical industry, leased the 1,538sqm property for 5 years at $210,000pa. The property has 43 parking spaces.

Level 3, Rear, 178 Collins Street, Melbourne
Arts Hub Pty Ltd leased the office suite at $500/sqm gross.


378-380 Johnston Street, Abbotsford
A local business operator bought the 440sqm showroom and office building on a 410sqm site for $3.18 million, on a 2.1% yield. It is occupied by sheets and bedding retailer Sheet Society on a lease running until August 2023.

278 Hampshire Road, Sunshine
The 204sqm building sold for $1.5 million. It is leased to Delphi Bank until September returning $79,681pa plus outgoings and GST.

151-155 Burwood Road, Hawthorn
The vacant 251sqm ground floor showroom space sold for $1.5 million.

576 Burwood Road, Hawthorn
The vacant 114sqm Victorian-style shop and dwelling previously occupied by a noodle bar sold for $1.2 million to an owner-occupier.

176 Bridport Street, Albert Park
Cashmere and natural fibre knitwear group Cashmerism leased the 43sqm shopfront on a 3 3-year term at $49,000pa net.


166-172 Johnston Street, Collingwood
Petrol magnate Andreas Andrianopoulos’ AA Holdings bought the 2 adjoining office and warehouse sites of a combined 809sqm for around $9 million, or $11,000/sqm. They were recently rezoned to Commercial 1.

21 Gladstone Street, Kew
An investor bought the block of flats for $4,533,688 on a 3.3% yield and unit rate of $569,211/unit.

1-3 Ghazeepore Road, Waurn Ponds
The 1,123sqm brand-new childcare centre property sold for $5.98 million on a 5.79% yield. HEI Schools has a 15-year lease plus options over the 3,898sqm corner site.

Commanding Secure Investment Leased to 2 National Tenants
A commanding freehold investment leased to 2 national tenants in TAB and Vinnies, within the prime section of the Keilor Road shopping precinct, has hit the market.

Fitzroys’ Chris Kombi and Ervin Niyaz are marketing 481 & 481A Keilor Road, Niddrie via Expressions of Interest closing Thursday, 15 September at 3pm on behalf of a private owner.
Expectations are of $4 million-plus.

The 2 well-presented, expansive shops have a combined building area of 904sqm, on a significant Commercial 1-zoned landholding of 650sqm over 2 titles with commanding frontage to Keilor Road of 15.24m. There is also shared ownership of 817sqm additional rear land used for car parking.

The property returns $200,078pa plus outgoings and GST from ASX-listed top 100 company TAB and Vinnies, operated by Society of St Vincent de Paul and with over 650 locations nationally.

“This is an unrivalled opportunity to acquire a commanding freehold investment leased to 2 national tenants, located within the prime trading section of an established shopping precinct with an array of national traders and supported by a significant and growing catchment area,” Kombi said.

Both tenants have 5-year lease terms with 5-year options.

“This is an excellent example of a well-located, income-producing bricks and mortar asset leased to quality tenants that delivers a consistent, reliable cash flow amid the current sharemarket and residential market volatility,” Kombi said.

Niyaz said the property also provides scope for future re-development and/or subdivision.

“The purchaser has the opportunity to collect a reliable, consistent cash flow while assessing their options for the site, making this one of the north-west’s best landbanking opportunities.”

The Keilor Road shopping precinct is anchored by Niddrie Central Shopping Centre, which includes a full-line Woolworths supermarket and BWS.

Surrounding tenants also include CBA, NAB, Australia Post, Advantage Pharmacy, Chemist Warehouse, Pet Barn, and established food and beverage operators, boutique apparel groups and showrooms.

The immediate area is serviced by the Route 59 tram operating along Keilor Road, and excellent road connectivity with easy access to Matthews Avenue, Tullamarine and Calder Freeways, CityLink, and Bulla and Mt Alexander Roads.

Niyaz said Niddrie is undergoing a period of transformation as multiple underutilised sites are developed into high density mixed-use complexes with retail and high-rise residential living, adding to population growth and foot traffic in the shopping precinct.

State Government Sells Parkville Apartment Block for $65m
The Lowy family-backed Assembly Funds Management has bought the EVO Apartments block in Parkville from the Victorian Government for around $65 million with plans to use the building as a build-to-rent investment.

Assembly Funds Management partnered with private equity firm and asset manager NashCap in acquiring the 7-level, 175-unit building at 107-115 Manningham Street.

The complex was developed by Pace Development Group and finished in 2014 before all units were acquired by the previous State Government for the East West Link tunnel and toll road. There was $320 million worth of properties, including 113 residential and 18 commercial properties across Clifton Hill, Collingwood and Parkville, that were compulsorily acquired in 2014 for the project, which was scrapped with a change of Government.

Build-to-rent projects in the works nearby include a 220-unit development by US group Hines on a Macaulay Road site it bought earlier this year for about $30 million, and Local’s 424-unit project on the former Vision Australia headquarters site in Kensington.

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.