Weekly Wrap

Fitzroys Weekly Wrap - 4th November 2022

Posted on 04th November 2022

93 Puckle Street, Moonee Ponds

The 180sqm building on a 160sqm Activity Center-zoned site sold for $2.125 million, on a 3.7% net yield. It is leased to Japanese restaurant Mizu Sushi on a 5+5-year lease from September 2021.

1027-1029 High Street, Armadale

The 359sqm building on a 253sqm triple-fronted site sold for $7.3 million. Clothing designer Zimmerman has 6 years remaining on its lease.

9/121s Grices Road, Clyde North

The 402sqm building occupied by international health and fitness chain Snap Fitness sold for $2.19 million, on a 5.52% yield. Snap Fitness has a new 10-year lease plus options to 2042 that returns $120,900pa plus GST.

10/121s Grices Road, Clyde North

Next door, the 471sqm building leased to Splash Swim School sold for $3.425 million, on a 5.84% yield. Splash pay $200,175pa plus GST in rent on a new 15-year lease to 2037 with options.

Shops 3 & 4, 341 Harvest Home Road, Epping

An investor bought the 100sqm space leased to café Brewer Sisters for $1.05 million, on a 4.93% yield. It has a new 10-year lease with a further option to 2037 returning $51,750pa plus GST.

525 High Street, Prahran

Infrared sauna group Found Space signed a 5-year lease at $125,000pa.

697 Burke Road, Camberwell
Vantage Property Investments sold the 6-level office building to a private investor for a figure in the low $20 millions, at a sub-6% yield. The 2,791sqm building returns $1.24 million pa.

12/23a Cook Road, Mitcham
A local owner-occupier paid $2.5 million for the 718sqm office and warehouse with 11 car parks.

16 Webber Parade, Keilor East

A local investor bought the vacant 744sqm standalone warehouse on a 992sqm site for $2.38 million.

907 Boundary Road, Tarneit

A landbanker and freight group Sandhu Pannu Transport bought the last 2 lots within Fraser Property Industrial’s Canvas West Estate for $2.03 million and $2.01 million respectively. Both blocks are 2,040sqm.

26 Palladium Circuit, Clyde North

A growing camping equipment business leased the 1,868sqm building prior to practical completion for 10 years at $241,500pa net.

23-35 Islington Street, Collingwood
Local technology company Linktree bought 3 adjoining properties on around 1,200sqm of land for about $10 million, from a textile-producing firm that had held them for more than 50 years. They are next to the double-storey warehouse at 37 Islington Street that Linktree acquired 2 years ago for $3.2 million.

46 Wyndham Street, Shepparton

The 237sqm medical clinic building on a 539sqm site changed hands for $780,000 on a 5% yield. It is leased to Nixon Street Medical Centre on a 3-year lease with options to 2030 that returns $38,971pa plus GST.

The Rex Theatre – Revitalise, Restore, Reimagine
Daylesford’s Rex Theatre is on the market, presenting one of regional Victoria’s most prized opportunities to revitalise, restore or reimagine a local icon.

Fitzroys’ Lewis Waddell and David Bourke are managing the Expressions of Interest campaign for 47-51 Vincent Street & 8 Duke Street, in the absolute heart of Daylesford, closing Thursday, 24th November at 4pm.

The historic, circa 1928 Spanish/Art Deco-style theatre is in various stages of refurbishment and is accompanied in the offering by a retail space and residential home.

“The Rex Theatre has been awaiting its next storied chapter for some time. This is an ultra-rare opportunity to revitalise, restore or reimagine a local icon in the centre of a thriving tourist destination,” Bourke said.

“It’s a wonderful chance to be part of this town’s and regional Victoria’s rich cultural history.”

47-51 Vincent Street comprises an open-plan ground floor of 2,000sqm plus first-floor of 300sqm with lift access, while 8 Duke Street comprises an existing residence in original condition.

The interior and exterior of the Rex Theatre are both covered by a heritage overlay.

“The Rex Theatre could be reimagined in so many ways such as commercial, food and beverage, retail, Hotel and accommodation or cinema and other event space to again become a beacon for the local community,” Bourke said. It was designed by architecture firm Bohringer, Taylor and Johnson, which was involved in other iconic buildings such as The Forum in Melbourne’s CBD.

Bourke said the Rex Theatre property is on an irreplaceable 2,558sqm landholding zoned Commercial 1, featuring rear access via Duke Street and on-site parking for 35 cars. It is within the commercial centre of Daylesford, which runs along Vincent Street and Albert Street and features a collection of historic buildings such as the Post Office, Town Hall, and several hotels and shops.

Waddell said, “Daylesford is a famous tourist hotspot located in Victoria’s Spa Country and recognized for an array of iconic hotels, galleries, spas and eateries including the Daylesford Brewery, Lakehouse Restaurant , Convent Gallery, Hotel Frangos, Daylesford Boathouse, Bromley and Co. and more.”

During the COVID-impacted year ending March 2021, the region had 1.9 million domestic visitors, who spent an estimated $300 million, according to Hepburn Shire Council, while in the 12 months to March, the Daylesford Macedon Tourism (DMT) area saw domestic overnight visitors grow 41% year-on-year compared to 26% growth for the rest of regional Victoria.

“During COVID and a period of more flexible working arrangements, Victorians have rediscovered the state’s gems and are showing a renewed enthusiasm for regional travel. We expect this is now a long-term trend and destinations such as Daylesford will be the beneficiaries,” Waddell said.

The average spend per night in the DMT area of $198 per person per night is also higher against the regional Victoria average of $165. Day trip spend recorded 58% growth to $158 million against a regional Victoria average of 40% growth. The total tourism spend in the region for the 12 months was is $434million.

Home to 16,476 people, Hepburn Shire supports 4,825 jobs and has an annual economic output of $1.337 billion. The largest industry sector for economic output and employment in the Daylesford township is accommodation and food services.

Global Retailer to Transform Historic CBD Banking Chamber
Global retailer Cosentino will transform a historic Art Deco Melbourne CBD former banking chamber into a concept showroom to inspire architecture and design professionals.

Cosentino leased the 539sqm space over the ground floor and basement of 460 Collins Street – the long-term former home of NAB, on the high-profile corner of William Street – on a long-term 10-year deal with 2 5-year options at $280,000pa net.

Fitzroys’ CBD retail leasing team Franklin Gikas, Travis Keenan and James Lockwood negotiated the deal on behalf of a private landlord.

Cosentino is a world leader in the production and distribution of high-quality innovative surfaces for architecture and design. Over the next 12 months they will transform the historic banking chamber into a Cosentino City concept location, adding to its existing 26 City concepts in locations such as London, Manhattan, Paris, Dubai, Tokyo and Amsterdam.

The City concepts focus on delivering and creating spaces that design and architecture professionals can meet and be inspired, while also offering advisory services for projects, conferences and networking events, digital and physical tools and materials for professionals to familiarise and interact with the company’s surfaces, and the ability to create material combinations.

“Our CBDs are becoming designated places for collaboration, sharing and formulating ideas, and networking. The new Cosentino showroom is well-placed to complement post-COVID ideas of the modern CBD work experience,” Gikas said.

The 460 Collins Street space features a high-clearance 413sqm ground floor area and an internal stairway link to the basement level, with heritage features from the original 1930s banking chamber having been retained.

“This is a space that can accommodate a wide range of uses, and we had interest from prestige retailers, supermarkets, and showroom users, through to major hospitality operators,” Lockwood said.

“Cosentino was attracted to the property’s location in the new heart of Collins Street. The CBD core has shifted west with the introductions of the new Collins Arch and Olderfleet commercial developments and the location serves a huge office, hotel, apartment and city shopper population.”

Fitzroys’ Gikas, Lockwood and Keenan have recently negotiated a number of brand-new retail leasing deals in the CBD to a mix of local, interstate and global tenants. The signees include Melbourne contemporary fine jeweller Melanie Katsalidis, Florence-based perfumery Santa Maria Novella within Royal Arcade, while Sydney-based Moi Moi Jewellery and Maelle Bridal took up space at 271 Collins Street, and video game, merchandise and electronics giant EB Games moved its flagship to 48 Elizabeth Street.

Charter Hall Buys Mulgrave Industrial Site for $84m
Property funds manager Charter Hall has paid $84 million acquiring a 5.5ha Mulgrave site that has potential to be redeveloped into as much as 100,000sqm of last-mile logistics facilities close to EastLink, the Monash Freeway and the Princes Highway.

Located on the corner of Springvale and Wellington Roads, the site currently has almost 28,000sqm of office and industrial buildings with tenants include bicycle distributor Sheppard Cycles and us tech company Keysite. It has a weighted average lease expiry of less than 3 years.

The vendor was publisher and property developer and investor Robert Magid.

The site is within the Monash National Innovation & Employment Cluster that is centred around Monash University. In August, the university paid $66 million to Toyota Australia for a 3.6ha site at 611-625 Blackburn Road opposite its Clayton campus. The site was formerly used as Toyota’s research and development centre which closed in 2016, and currently has a 2-level, 3,926sqm office building, several workshop facilities and 208 car parks.

Investor Buys $50m Worth of CBD Properties
The vacant 7-storey office and retail CBD building Swanston House has sold for $18.02 million to a private investor.

Swanston House, at 163 Swanston Street, near Bourke Street, has a floor area of 1,508sqm including a newly refurbished basement and is on a 189sqm site.

The purchaser has also just bought the 2-level CBD building at 272-282 Lonsdale Street for $32.6 million, on a sub-3% yield. Comprising shops and a restaurant, the 817sqm building is fully leased to 6 tenants, returning a combined $1,002,565pa, with the lease profile providing for vacant possession in 2027. It is on a 413sqm site.

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.