Weekly Wrap

Fitzroys Weekly Wrap - 23rd September 2022

Posted on 23rd September 2022

28 Carpenter Street, Brighton
An investor bought the 504sqm double-storey building on a 589sqm site for $8.38 million, on a 2.94% net yield. It is fully-leased to longstanding tenants Dorevitch Pathology, Buxton Real Estate and dentist Lifestyle Smiles, which have leases with options through to October 2033.

903 Nepean Highway, Mornington
The 2,204sqm corner site home to an Autobarn showroom and with a low 34% site coverage sold for $5.4 million on a 3.77% yield. Its lease and options run until 2031.

45 McIntyre Road, Sunshine
The 3,260sqm United Petroleum service station site sold for $3.15 million at a 2.97% yield. It has a 10-year ground lease to 2031 plus options to 2046 and is zoned Industrial 1.

266 Keilor Road, Essendon
The 560sqm vacant showroom building on a 738sqm Commercial 1-zoned site sold for $2.115 million.

558 Sydney Road, Brunswick
The 2-storey shop on a 187sqm site sold for $1.305 million, on a 3.76% yield.

421 Riversdale Road, Hawthorn East
Buxton (Ashburton) Pty Ltd is relocating to the 111sqm space after committing to a 5-year lease with options at around $265/sqm.

75 Brighton Road, Elwood
The 67sqm retail space sold for $745,000, currently returning $29,704pa plus outgoings and GST.

244 Wickham Road, Moorabbin
National flooring and carpets company Flooring Extra leased the 697sqm showroom on. a corner site on a 5+5-year term at $90,000pa net.

17 Wellington Street. St Kilda
Ozzy Thai leased the 326sqm fitted space formerly occupied by Wabi Sabi at $80,000pa.

764 Burke Road, Camberwell
A homewares store leased the 64sqm space at $500/sqm net.

Suite 9, Level 8, 343 Little Collins Street, Melbourne
Tailor Final Fitting Pty Ltd leased the space for 3 years at $450/sqm net.

25-31 Brisbane Street, Eltham
Self-storage developer Impact Designer Homes paid $9.6 million for the 6,571sqm corner site, currently improved by 2 warehouses totalling 4,731sqm.

95 St Kilda Road, St Kilda
The 945sqm site sold for over $10,000/sqm, or close to $9.5 million. Zoned Mixed Use, it has a 58m frontage and a Design and Development Overlay with a preferred height of 13 storeys.

289-291 Kooyong Road, Elsternwick
An investor paid $9.85 million for the medical clinic building, on a 4.82% yield. The building has a brand-new 15-year lease plus options and is on a 1,340sqm site opposite Caulfield Hospital.

39 Breed Street, Traralgon
The 291sqm medical and radiology clinic-leased building on a 729sqm site sold for $2.115 million, on a 5.19% yield. It has a new 15-year lease plus options to 2042.

Cnr Sydney Road & Bell Street, Coburg
Community health group Merri Health sold the 1,193sqm 2-storey building on a 753sqm site for $5.09 million to Base Group’s Harry Fung. Merri Health originally bought the property in 2016 with plans to develop into a head office but is now in the Pentridge development.

A Piece of Punt Road History Set for New Chapter
A piece of Punt Road history is set for a new chapter after Melbourne Girls Grammar acquired the Domain Hill site home to the Glenhope mansion.

Fitzroys’ David Bourke and Chris James sold 466 Punt Road, South Yarra for more than $7 million via Expressions of Interest on behalf of long-term owner-occupier Millswyn Clinic. Currently, the substantial 1880s grand Victorian building is used for medical and consulting rooms. It is on a 1,777sqm site zoned Residential Growth and was offered with a short-term lease expiring December 2022.

Bourke said the market responded accordingly to the huge potential of the site, with the very competitive campaign generating more than 100 enquiries and 8 offers put forward.

Melbourne Girls Grammar will use the property as overflow space. The P-12 school’s campus neighbours the close-by Royal Botanic Gardens.

“There’s an acquisition overlay on the property but that clearly had no bearing on the enquiry or the result. The property offered huge potential and the demand drivers in the area created a prime environment for a range of outcomes, including being repurposed for education, medical or childcare, boutique residential accommodation or for redevelopment,” Bourke said.

“There’s a fast-growing demand from young families moving to the area for education, medical and childcare services. South Yarra, and in particular the nearby Forest Hill precinct, is undergoing a transformative period that is bringing new residential, retail, office and hospitality offerings.

“We had a number of owner-occupiers looking to utilise the existing Glenhope Mansion as-is. Character buildings provide a point of difference for businesses and historic inner-Melbourne buildings such as this are very tightly held.

“Developers noted that inner suburban locations with high-quality hospitality and lifestyle amenity are hugely popular at a time of flexible working arrangements. South Yarra sites of this size and potential are incredibly rare.”

James said South Yarra is being regenerated as a commercial and lifestyle destination in its own right.

“The property is close to all of South Yarra’s fantastic amenities, including the Royal Botanic Gardens, Fawkner Park, the Toorak Road restaurant and lifestyle precinct and Forrest Hill,” he said.

“The prestigious Domain Hill precinct is also within walking distance to the Yarra River, Melbourne Cricket Ground and Yarra Park, and is moments from the Melbourne CBD and St Kilda Road office precinct.”

Glenhope was built in 1887 by Robert Paxton, and held within the Paxton family until it was bought by the Warsaw Jewish Committee in 1951 for £17,200, and housed Polish refugees arriving from Europe. A financial sharing and occupancy agreement was made with the Australian Jewish Welfare and Relief Society (AJWRS) and ownership and occupancy was transferred to the AJWRS in 1958. The building served the society as its headquarters until 1992.

Chapel Street NAB Branch Building Fetched $16.2m
The long-term NAB branch building on the corner of Chapel Street and Toorak Road has sold to a local private investor for $16.2 million.

NAB has been at 600 Chapel Street for more than 70 years and recently signed a new 5+3+3-year lease following a $1.5 million refurbishment. The 521sqm building on a 373sqm site sold on a 2.53% yield.

Former Aged Care Property Sells for $14.7m
An Alphington aged care facility site formerly run by Chronos Aged Care has sold for $14.7 million and is likely to be redevelopment.

The 7,027sqm site includes the facility at 9-11 Old Heidelberg Road, and 2 older-style vacant houses at 13 and 15 Old Heidelberg Road.

A caveat was lodged for the site by Perpetual Nominees.

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.