Weekly Wrap

Fitzroys Weekly Wrap - 15th November 2019

Posted on 15th November 2019

000 Retail 05

1097-1105 Mount Alexander Road, Essendon
The 736sqm corner site with a fully-leased 518sqm building sold for $6.405 million. Rent from the 4 tenants, including a café and Essendon Hair Stylist, plus an ATM, is $233,564pa plus outgoings and GST.

646 Burwood Road, Hawthorn
An interstate buyer paid $5.45 million for the building home to café Zoobibi, which pays $200,000pa and has 3.5 years remaining on its lease.

520 Lygon Street, Brunswick East
The 140sqm building sold for $825,000 at a 3.4% yield, and is leased until 2021 to accountants Christav Partners.

1056 Plenty Road, Bundoora
The 201sqm space has been split into two shops and leased to two new tenants. A laundromat leased a 94sqm space on a long-term 6+6+6-year deal at $48,000pa plus outgoings and GST, and L2 Nails Salon leased a 107sqm space at $55,000pa plus outgoings and GST on a 4+4-year term.

000 Offices 05

59 Johnston Street, Port Melbourne
An owner occupier paid $3.01 million for the 2-level 500sqm office building, which was offered with a permit for a 6-level residential project.

Cnr Chapel Street and Elgin Street, Morwell
MPG Funds Management bought the 2,273sqm offices of Centrelink for $6.5 million, at a 7.69% yield.

17 Watsonia Road, Watsonia
The 327sqm offices of the North East Link Watsonia Community Information Hub sold for $2.2 million, with a 5-year lease to the State Government bringing $113,700pa.

284 Dorset Road, Boronia
A medical practitioner paid $1.3 million for the 1970s single-level office building, which is on a 1,045sqm corner site.

Ground Floor, 19-21 High Street, Glen Iris
The 143sqm office sold for $1.1 million at a 5.45% yield, with a 4-year lease with options to C. Kairouz Architects returning $60,000pa net plus outgoings and GST.

3/86 Wellington Street, Collingwood
An owner occupier bought the 125sqm 2-level vacant office for $870,000.

Level 3, 141 Osborne Street, South Yarra
WebSavvy leased the 300sqm space for 6 years at $530/sqm net.

Level 3, 19 William Street, Cremorne
Buro North leased the 250sqm whole floor at $520/sqm net.

000Industrial 05

575 Burwood Highway, Knoxfield
A Singapore-based investor bought the 1.2ha property for $10.3 million, at a passing yield of 5.83%. The tenant, Spartan has an 8-year lease.

1-5 Marlo Place, Hallam
The 1,805sqm office, showroom and warehouse sold for $3.41 million. OneTrak Pty Ltd has 2 years remaining on its lease, with 2+2-year options, bringing $186,000pa.

91 Moreland Street, Footscray
The 3-level, 460sqm office and warehouse with 260sqm of outdoor amenity sold for $2.14 million.

5/2 Bromham Street, Richmond
The refurbished office and warehouse of 336sqm sold for $1,412,500.

5/29 Business Park Drive, Notting Hill
The 616sqm office and warehouse sold for $1.38 million, and is leased to a long-term tenant returning $69,010pa net.

87-89 Main Road, Clayton South
The 800sqm double warehouse on a 1,260sqm site sold for $940,000, at a 6.5% yield, and is leased to 2 tenants.

5-7 Elata Drive, Tullamarine
A building material supplier leased the 3,737sqm facility for 3 years at $275,000pa net.

22 Graham Daff Boulevard, Braeside
Aqua Prep Pty Ltd signed a 3+3-year lease for the 870sqm facility at $103/sqm net.

000 Specialised 05

6 Parker Street, Officer
An investor bought the One Early Education Group childcare centre for $5.25 million at a 5.9% yield. The 129-place centre of 906sqm is on a 2,800sqm site, and has a lease until 2033 with options to 2063.

000 Development 05

250 High Street, Ashburton
Zoned Commercial 1, the 716sqm site has a 53m frontage and sold for $3.125 million.

179 Booran Road, Caulfield South
The 676sqm site sold for $1.705 million. Zoned Commercial 1, it has a shop and dwelling leased to April 2021 with no option.

337-341 Swan Street, Richmond
The 553sqm site, zoned Commercial 2, sold for $5 million with holding income from 2 showrooms.

000 Talking Points 05

Coles Continues Supermarket Sell-off
Coles has sold a neighbourhood retail centre in Boronia anchored by a Coles supermarket and Kmart for around $35 million.

The 10,000sqm centre within the Boronia Mall was recently upgraded and has a new 12-year lease to Coles, while Kmart’s lease ends in 2025, for a combined return of $2.05 million pa.

Recently spun out of parent company Wesfarmers, Coles has been selling off its supermarkets and retail assets in leaseback deals across the country through its development arm. Combined divestments over the past two years now total more than $300 million.

Private Investor Picks Up Growth Suburb Shopping Centre Development Site
Charter Hall and joint venture partner ID_Land have sold a 2.2ha development site in Truganina to a Melbourne-based investor for $9.6 million, with a permit for the 7,390sqm neighbourhood shopping centre and a 15-year lease pre-commitment from Coles.

The Coles and a Liquorland outlet would take up 4,000sqm, and the plans also include 20 specialty stores. Truganina Central Shopping Centre will serve Charter Hall and ID_Land’s masterplanned Elements community.

Blue Chip Trophy Investment in Major Activity Centre
A land-rich retail site in Melbourne’s western growth corridor, anchored by Tabcorp, VicRoads and Godfreys, has hit the market with interest expected from local and offshore parties.

Fitzroys Chris James, Michael Donovan and Ervin Niyaz are managing the Expressions of Interest campaign for 54-64 Old Geelong Road, Hoppers Crossing closing Tuesday, December 10th.

Strategically positioned in the heart of a Major Activity Centre, and adjoining Hoppers Crossing Shopping Centre and Hoppers Crossing Railway Station, the site has a 2,220sqm showroom and commercial building, next to 7,172sqm of common area car parking.

The diversified, high-profile tenancy list includes Government, national and public company tenants, and returns $687,000 net per annum.

Wyndham Municipality is expected to benefit from enormous population growth of 81% by 2041, according to the Australian Bureau of Statistics.

Charter Hall Buys Viridian Glass HQ
Charter Hall Prime Industrial Fund bought the 20.02ha Viridian Glass headquarters and manufacturing facility site in Dandenong South from Crescent Capital Partners for $100 million.

Viridian has occupied at 51-95 Greens Road since the 1960s. The property has 77,124sqm of manufacturing, warehousing and office space, including a $250 million float-glass tank, and 4.1ha of expansion land.

Crescent Capital Partners took over Viridian last year, and Viridian will lease the property for 8 years as part of a sale and leaseback agreement.

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.