Weekly Wrap

Fitzroys Weekly Wrap - 7th October 2022

Posted on 07th October 2022

51 Church Street, Brighton
A local investor paid $4.45 million for the 112sqm building on a 3.2% yield, reflecting a building rate of $39,732/sqm. ASX-listed Flight Centre has renewed its lease until 2028.

29 Main Street, Winchelsea

The 770sqm corner site leased to an IGA Plus Liquor supermarket sold for $2.017 million on a 4.85% yield. It has a renewed 10-year lease to November 2031 with 2 further 10-year options.

8/114-126 Evans Street, Sunbury

The 100sqm corner shop occupied by Nuts for Donuts sold to an investor for $955,000, on a 5.45% yield.

5/2-10 William Thwaites Boulevard, Cranbourne North

The 103sqm shop home to Eve’s Pizzeria and Gelato Bar sold for $920,000 on a 5.19% yield. Eve’s has a 10-year lease with options to 2041.

7 Fenton Way, Kew

The 45sqm shop with a new 5-year lease to eatery Via Porta sold for $575,000, on a 3.8% yield.

463 High Street, Prahran

Kurashi Japanese Crafts leased the 130sqm double-storey Victorian building at $56,000 plus outgoings and GST.

17-22 Grattan Street, Prahran

Freedom Suites signed a 10-year lease over 2 spaces totalling 285sqm at $130,000pa net.

774 Glenferrie Road, Hawthorn

Contemporary jeweller Shabana Jacobson leased the 2-storey 165sqm building for 5 years at $62,500pa net plus outgoings and GST.

Suite 4, 147 Wattletree Road, Malvern
An owner-occupier bought the vacant 94sqm suite for $872,500.


73-75 Canterbury Road, Montrose
ASX-listed dental product manufacturer SDI paid $17.8 million for the 2 office and warehouse buildings on a 23,740sqm site to accommodate its growing operations. The vendors had bought the property 50 years ago for $90,000.

15/97-101 Bayfield Road East, Bayswater North

The 1,026sqm warehouse sold for $1.92 million, on a 4.3% yield. It is leased to AME Systems for 2 years and returns $84,618pa.

19 Bruce Street, Mornington

A private investor bought the multi-tenanted 650sqm office and warehouse with 10 on-site car parks for $1.865 million.

Units 1 & 2 and 4, Bostock Court, Thomastown

The 2 factories totalling 584sqm with short-term leases on 1 title of 915sqm sold for $1.475 million.

57 Jamieson Way, Dandenong South

Family business Tenacious Tapes leased the 2,942sqm under-construction shed for 7 years at $338,330pa

16-18 Biodiversity Boulevard, Epping

An expanding national caravan manufacturer leased the 3,650sqm facility prior to practical completion on a 5-year lease at $140/sqm net.

726-732 Nicholson Street, Fitzroy North
The 669sqm site zoned Commercial 1 sold for $5.6 million. It currently comprises 4 shops of a combined 463sqm over 3 titles and nearly 22m of frontage to Nicholson Street, and was offered with short-term holding income.

45 Synnott Street, Werribee

The 1,404sqm land parcel with a permit for a 2-level medical centre sold for $1.85 million.

63-65 Bridge Street, Bendigo
The 715sqm building on a 1,647sqm site sold for $4.813 million at a 5.58% yield. Bendigo Medical has a renewed 5-year lease plus options to 2046 and the clinic includes an on-site UFS Pharmacy and Melbourne Pathology.


Growth Corridor Investment Opportunity Snapped Up in 7 days
An enriching investment opportunity in Melbourne’s south-east growth corridor with a lease to an international agribusiness conglomerate has been sold for $5.75 million within just 7 days of the on-market campaign launch.

Fitzroys’ Brent Glassford and Marco Sandrin sold 150 Sybella Avenue in Koo Wee Rup, within the Shire of Cardinia, on behalf of a private family who have held the property for a long time.

The 4.06ha site with a 290m frontage comprises warehouses and sheds with a combined building area of 5,457sqm. Ameropa Australia, part of Switzerland-based international agribusiness conglomerate Ameropa AG, has a lease until April 2029 returning $354,695pa plus outgoings and GST.

“Agribusiness-tenanted investments have become highly sought-after amid a sustained period of strong growing conditions and heightened commodity prices,” Glassford said.

“There remains a severe shortage of warehousing assets available to the market. This, combined with the property’s secure, long-term lease to a global agribusiness operator, and its strong road connections meant we had a rush of investors show strong interest in the site, ultimately leading to a strong sales result in just 7 days.” The scheduled Expressions of Interest campaign was not due to close until 13 October.

The property is just 200m from the South Gippsland Highway and a short drive to the M1.

Sandrin said there was also interest from landbankers and developers during the short campaign, with the property in excellent proximity to Koo Wee Rup’s revitalised town centre and well-connected to the region.

“Commercial and residential land in Melbourne’s south-east growth corridor is consistently being snapped up quickly. Casey continues to be a hotspot for landbankers and developers and many have their eye to the long-term potential of sites,” he said.

Shepparton Shopping Centre Sells to Singaporeans for $88.1m
Singapore-listed Metro Holdings and joint venture partner Sim Lian Group have bought the Shepparton Marketplace sub-regional shopping centre for $88.1 million from Dexus Wholesale Property Fund.

The 16,535sqm centre is anchored by a Woolworths supermarket and Big W store and has 30 specialty tenants, 265-seat food court, and a service station. It sold on a capitalisation rate of 6.25%.

Shepparton Marketplace is on a 122,900sqm site that includes 61,700sqm of vacant land.

Metro Holdings and Sim Lian group have an Australian asset portfolio of 4 office buildings and 13 retail centres valued at around $1.2 billion.

New Hotel and Office Tower Proposed for Toorak Road
Developer Oreana Group has lodged plans for a $250 million mixed-use development on Toorak Road incorporating the South Yarra Square complex and a row of neighbouring Tudor-style shops next to South Yarra station.

South Yarra square is a strata-titled 5-level retail and office building with a piazza fronting Toorak Road, and was bought by Oreana Group last year for around $35 million, which the developer followed up with the $13.15 million purchase of 4 shops with short-term leases at 169-175 Toorak Road.

Oreana Group has lodged plans for a 30,000sqm development designed by Fender Katsalidis Architects, retaining the Italianate and Tudor building façades below a new 17-level building that will include 9,300sqm of office space, 1,400sqm of retail and 4,200sqm for the luxury hotel that will have room balconies facing onto Toorak Road.


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.