Fitzroys Weekly Wrap - 1st November 2019

Posted on 01st November 2019

2-6 Copernicus Crescent, Bundoora
An investor bought the 245sqm ground-floor café and restaurant within the Polaris Town Centre for $2.6 million at a 5.5% yield. It has a corner frontage of 34m and a 5+5-year lease to Vorea Cafè.

57 Puckle Street, Moonee Ponds
Offered for the first time in more than 75 years, a local investor bought the 2-storey building for $1.54 million at a 3.25% yield with plans to value-add in the future. Vodafone has a long-term lease.

63-69 Market Street, South Melbourne
A private investor paid $3.455 million for the 594sqm showroom at a 2.3% yield. Anytime Fitness has a 5+5-year lease.

19 Main Street, Cobram
The 954sqm building leased to The Reject Shop sold for $1.86 million at a 7.81% yield.

28 William Street, Seymour
The 4,673sqm freestanding Woolworths on a 10,375sqm site sold for $15.42 million. The supermarket returns $800,000pa net plus GST on a lease with options to 2043.

29-33 Synnot Street, Werribee
The 1,030sqm showroom leased to First Choice Liquor sold to an investor for $7.75 million. It is on a 2,543sqm site and has a new 7-year lease with 8 5-year options, currently returning $318,000pa net.

679-699 High Street, Prahran
Dulux Group signed a 7+5-year lease over the 163sqm former 7-Eleven store at $90,000pa net.

486 Hampton Street, Hampton
A medical business signed a 5+5-year lease for the 144sqm corner building at $60,000pa plus outgoings and GST.

Level 1, 110 Johnston St, Fitzroy
Business trading website Flippa leased the 300sqm whole floor for 3 years at $550/sqm gross.

693 Burke Road, Camberwell
Triple A Super leased the 333sqm office for 3 years at $135,000pa gross.

17-27 Cotham Road, Kew
Embassy Print Solutions leased the 78sqm ground floor office at $540/sqm net.

20-24 Hall Street, Hawthorn East
Chairman of NRL team Sydney Roosters, Nick Politis bought the vacant office and warehouse site of 1,600sqm with 37 parking spaces for $11.2 million.

75-79 Auburn Road, Hawthorn
The car workshop site of 981sqm sold for $4.2 million.

7 Zacara Court, Deer Park
An owner occupier bought the industrial building with a 724sqm warehouse 234sqm of office space for $1,264,560.

37 Zilla Court, Dandenong South
The 2,182sqm building was leased for 5 years at $267,000pa.

5-7 Norton Drive, Melton
Specialised Heating and Cooling bought the 4,131sqm office and warehouse, on a 9,050sqm site, for $2.95 million.

20 Reservoir Road, Frankston
A local investor paid $1.85 million at a 5.01% yield for the 380sqm, 65-place childcare centre on a 2,211sqm site, which returns $92,700pa on a 5-year lease with options until 2037.

75 Asling Street, Brighton
A North Brighton medical practice leased the 197sqm building, on a 696sqm site, in a 7+7-year deal at $125,000pa.

Investors Pump $78 Million Into 7-Eleven Stores

Russell Withers’ 7-Eleven group has sold off a portfolio of 15 petrol stations across Australia for a combined figure of nearly $78 million, at a weighted average yield of around 4.7%.

All were sold with new 12-year net leases to 7-Eleven, and the portfolio included five sites in Victoria. The 8,084sqm site at 1603 Sydney Road, Campbellfield, which also has a McDonald’s on a sub-lease, sold for $8.52 million and returns $395,193pa; and a 17,300sqm site at 1593 Western Highway, Rockbank sold for $6.8 million with a return of $328,983pa.

The 3,430sqm site at 893 Nepean Highway in Mornington sold for $4.9 million (bringing $209,264pa); a 2,677sqm site at 844 Burwood Highway, Ferntree Gully changed hands for $5.07 million (bringing $364,996pa); and a 5,412sqm site zoned General Residential at 339 Dorset Road in Croydon sold for $5.88 million with a of $364,996pa.

7-Eleven plans to upgrade 293 of its stores, introduce a Parcel Mate program to 400, and upgrade fuel infrastructure at 13 sites.

Box Hill Offices Flipped
A joint venture between Yong Ning Investments and Kimty has sold 2 dual-level Prospect Street office buildings in rapidly growing Box Hill for about $15 million each, after holding them for just 18 months.

Number 22-24 has a 1,207sqm site area and development potential of up to 20 storeys. Boneng Developments placed a caveat on the property, which the joint venture had bought for $10.5 million. Developer Josh Cheng placed a caveat over the 1,305sqm site at 15-17 Prospect Street, for which the JV paid $12.2 million.

Prospect Street sites at number 9-11 and 31-35 are currently subject to respective 194-apartment tower proposals, and are moments from two adjacent developments by Golden Age Group on Station Street, including the under construction 36-level Sky One project with 438 apartments, and the recently approved 429 dwelling, three-tower New China Town.

A string of nearby sites on Whitehorse Road are also slated for sizeable projects, including a 37-storey tower at 843 Whitehorse Road and a mixed-use tower with 273 apartments, hotel and offices at 837 Whitehorse Road; as well as at 826-830 Whitehorse Road and the former Spotlight site at 851 Whitehorse 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 2019 Fitzroys.

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