Weekly Wrap

Fitzroys Weekly Wrap - 9th December 2022

Posted on 09th December 2022

57-59 Bridge Road, Richmond
The 370sqm building on a 447sqm corner site sold for $5 million, on a 2.6% initial net yield. Jellis Craig has a renewed 5-year lease with no options to the end of January 2028.

129-135 High Street, Kew

Chemist Warehouse bought the 5-shop, 577sqm building on a 630sqm site – just a few doors down from its Kew Junction outlet – for $5.32 million.

415-417 Springvale Road, Forest Hill

Chemist Warehouse also paid $2.72 million for the 341sqm building that it currently occupies. It has been at the location since 2007 and recently renewed its lease for another 5 years, at $87,915pa.

1 Gilbert Drive, Altona North

A private investor bought the 864sqm showroom and retail building for $2.86 million. It is occupied on a 12-year term by Relax & Play, which offers a play centre for children and co-working space, salon, and fitness studio for adults while their children use the play area.

10 & 11/115 Anzac Avenue, Seymour

The 658sqm IGA supermarket leased property sold for $2.005 million on a 4.15% yield, with a 10-year lease to 2027 plus options to 2052 that currently returns $83,240pa plus GST.

5/166 Whitehorse Road, Blackburn

An investor paid $1.271 million for the 175sqm showroom, which has a brand new 10-year lease to UBX Boxing plus options that returns $65,625pa plus GST.

409 High Street, Ashburton

A local investor bought the 211sqm building on a 224sqm site for $950,000. Hiclean Dry Cleaners has a lease until the end of August 2024 with no option returning $22,840pa net.

1530 Main Road, Research

A local investor paid $925,000 for the 100sqm retail building, on a 4.3% yield. It is leased to Cafè Z and returns $40,000pa plus outgoings and GST.

457 South Road, Bentleigh

A local developer paid $620,000 for the vacant 192sqm site zoned Commercial 1, which has a 2-level 112sqm building.

113 Hardware Street, Melbourne

Japanese restaurant IKKAI leased the 155sqm building for 5 years at $120,000pa.

415 Riversdale Road, Hawthorn East

A Thai restaurant leased the 155sqm fitted ground floor space on a 5+5+5-year deal at $80,000pa net.

247 Greens Road, Dandenong
A local accounting firm paid $539,000 for the 77sqm property, which is within Pomeroy’s Pacific Eastlink Towers.

Level 1, 619 Burwood Road, Hawthorn

Singing Space leased the 80sqm 1st floor studio on a 2+2-year lease at $22,000pa.

G11, 202 Jells Road, Wheelers Hill

The 47sqm suite sold with vacant possession for $295,000.

27 Pauljoseph Way, Truganina
Plus Property Group paid $10.25 million for the vacant 13,314sqm land parcel, zoned Industrial 1 and located within the Axiom Estate. It has been earmarked for a small unit development.

40 National Drive, Truganina

Conrock bought the 7,232sqm site for $5.6 million with plans to develop a distribution facility. The land has concept plans and permits for a 4,500sqm office and warehouse.

39 & 41 Chifley Drive, Preston

A local investor bought 2 vacant factories on a 962sqm landholding for $2.25 million.

114 Douro Street, North Geelong

A local investor bought the 620sqm warehouse for $1.2 million. It has been occupied by Friend’s Holden Wreckers.

269 Blackburn Road, Mount Waverley

The vacant warehouse sold for $1.1 million. It is on a 215sqm site with potential to build on top of the existing building up to 3 levels.

Unit 3, 51-55 Centre Way, Croydon South

An e-commerce business leased the 203sqm warehouse and office unit for 3 years at $145/sqm net plus outgoings and GST.

3 Russell Street, Hawthorn East

A digital and media agency leased the 315sqm office and warehouse, which has 2 on-site parking space, at $60,000 plus outgoings and GST.

94 Burke Road, Malvern East
The 1,136sqm site, zoned General Residential 7 and with a permit for 11 apartments, sold to a local developer for $5.5 million. The approved project would total 1,255sqm of building area.

349 High Street, Prahran
Charter Hall Social Infrastructure REIT divested the 686sqm corner site leased to Guardian Childcare on a 10-year term. It sold for $3.27 million, on a 3.12% yield.

Ripe Land-Rich Inner-North Site Sells for $5.6m
A prized land-rich landholding in Fitzroy North has sold for $5.6 million, after an array of buyers competed for the rare opportunity to occupy or redevelop in Melbourne’s highly sought-after inner-north.

Fitzroys’ Chris Kombi and Ervin Niyaz sold 726-732 Nicholson Street via Expressions of Interest on behalf of a private investor, with the final sale price well above expectations.

A land banking developer was the purchaser of the 669sqm site that currently comprises 4 shops on 3 titles of a combined 463sqm. It has 8 rear on-site car parks accessible via Scotchmer Street, and has an expansive frontage to Nicholson Street of 21.95m. It was offered with short-term holding income.

Zoned Commercial 1, the site offers higher-density development potential with multi-level towers nearby ranging from 4 to 6ix levels.

Kombi said interest was received from developers, value-add players, land bankers and owner-occupiers.

“It’s incredibly rare to find a ripe development opportunity of this size on a main road position in Melbourne’s inner-north. We’ve again seen developers and land bankers look past inflationary pressures and growing construction costs to take up the chance to deliver a project in one of Melbourne’s most sought-after locations,” he said.

“The market recognised there has been ongoing, overwhelming demand in the immediate area across multiple projects. As expected, we had a number highly-qualified developers compete strongly for this site.”

Niyaz said accessibility and quality lifestyle amenity remain all-important, and inner-city locations are particularly popular with

Melburnians as flexible working arrangements become commonplace.

“Land bankers were confident of the long-term prospects of the site given the ongoing demand for numerous projects in the area, in addition to trends towards flexible working arrangements.”

The site is surrounded by multiple cafés and eateries, and is just 1 kilometre from the Lygon Street hospitality precinct and 450m to Edinburgh Garden, while the Route 96 tram stop is at its door step with bus services along nearby Scotchmer and Pigdon Streets.
He said interest also came from owner-occupiers looking to occupy part or all of the existing building, and bring a new offering to a vibrant, fast-growing inner-city location, while value add players saw the chance to reposition the building.

“The area surrounding Nicholson Street has seen a surge in the development of residential apartments in recent years along Nicholson Street, St Georges Road and Queens Parade, and the population boom in the immediate area will benefit all businesses along Nicholson Street. Melbourne’s shopping strips have benefited from more people buying coffee and lunch and spending time locally.”

Gisborne Office Building Sells for $23m
The Nexus Business Centre in the Macedon Ranges has sold for $23.17 million, on a 7.06% passing yield.

Developed in 2008, the building comprises 7,552sqm of ground level retail, upper floor office space and secure car parking. It is 85% occupied and anchored by Suncorp, which uses the property for its AAMI call centre, as well as the Country Fire Authority, Victorian State Government and Bendigo Bank.

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.