Weekly Wrap

Fitzroys Weekly Wrap - 17th February 2023

Posted on 17th February 2023

2 Brentford Square, Forest Hill
The 290sqm government-tenanted property on a 253sqm corner site sold for $2 million, on a 4% yield. Located within the Brentford Square shopping centre, it has a 5+5+5+5-year lease and is next to a Woolworths supermarket.

269-275 Wyndham Street, Shepparton

An offshore investor paid $1.83 million on a sub-6.5% yield for the 760sqm corner building, home to Skky Bar on a 5+5+5-year lease from June 2022.

50 Church Street, Hawthorn

A local investor with a view to occupy bought the 2-level 220sqm shop and residence. It has a new 5+5+5-lease lease to Australia Post LPO and returns $59,918pa.

253-257 Victoria Street, Abbotsford

The 290sqm showroom building on a 406sqm corner site sold for $1.9 million, on a 3.7% yield. Nutrition Warehouse occupies the property on a lease returning $61,902pa net plus outgoings.

130 Montague Street, South Melbourne

An owner-occupier paid $1.37 million for the vacant 2-level 150sqm building, which is on a 150sqm corner site with 3 frontages.

47 Marianne Way, Mount Waverley

The 216sqm corner property, occupied by Julien Moussi’s new café Hamlet, sold for $1.33 million on a 5.64% yield to a private investor. Hamlet has a 10-year lease plus options returning $75,000pa plus outgoings and GST.

P4, 766 Toorak Road, Glen Iris
An owner-occupier bought the vacant, recently renovated 144sqm office for $1 million.

Suite 108, 12 Cato Street, Hawthorn East
The 140sqm, fully-fitted office suite sold with vacant possession for $760,000.

Suites A&B, Level 3, 159 Chapel Street, South Yarra
Australian Exhibition Group least the combined 591sqm office space at $350/sqm.

67 Gateway Boulecard, Epping
A private investor bought the 3,970sqm warehouse, occupied by Automatic Heating Global, for $8.94 million on a yield of 4.25%.

Unit 12, 484 Graham Street, Port Melbourne

An investor bought the 177sqm 2-level office and warehouse for $1.02 million, on a 4.4% yield.

100 Henderson Road, Rowville

Handrails, guardrails and balustrades manufacturer Moddex Group leased the 6,001sqm property for 9 years, at $660,000pa.

140 Yarra Street, Abbotsford
Offered with vacant possession 854sqm Neighbourhood Residential-zoned site with a block of 8 apartments sold for $3.4 million. It has an existing planning permit for an 8-townhouse project.

65-67 Beaufort Road, Croydon

The 2,918sqm General Residential 1-zoned site with approval for a 122-place childcare centre sold to a local provider for $2.8 million.

Ultra-Rare Land-Rich Agri-Industrial Portfolio Hits the Market
One of the most significant, land-rich agri-industrial portfolios to become available in recent times has hit the market.

The Gibsons Groundspread Portfolio comprises 4 sites in Victoria’s south east region, each with 10-year leasebacks to leading agricultural group Gibsons Groundspread, with a total underlying land component of 81.945ha.

Fitzroys’ Marco Sandrin and Brent Glassford have been appointed to manage the Expressions of Interest campaign, closing Wednesday, March 1st at 2pm. The 4 properties are being offered for sale in-one-line or separately.

The properties, located in Rosedale, Dutson, Yarram and Bayles, return a combined $1.394 million in annual income from their respective 10+5+5-year, rare triple net leases.

The properties include:

2194 Princes Highway, Rosedale - the 2.506-hectare site returns $569,000pa and 3,098sqm of buildings across a storage and blending warehouse, heavy vehicle workshop and lime shed, and has a 20,000L diesel fuel storage area.

980 Longford-Loch Sport Road, Dutson - at 62.64ha, the Dutson site is the largest of the portfolio. It has a 30,000t blending facility, 406sqm office and workshop and multiple sheds with 5,000t undercover storage capacity, a compost screening plant, 60,000L diesel fuel storage and composting area with 30,000t product storage capacity. It returns $210,000pa.

33 Pound Road West, Yarram - the 9.095ha site has 1,142sqm office and blending facility as well as a workshop and storage shed, and 10,000L diesel fuel storage area. It returns $395,000pa.

100 School Road, Bayles - located within the Shire of Cardinia, the 7.704-hectare site has 1,064sqm of buildings across office, fertiliser bunkers and sheds with 30,000L diesel fuel storage area.

“Agribusiness-tenanted investments have proven to be highly sought-after while we experience a sustained period of strong growing conditions and heightened commodity prices,” Sandrin said.

“There remains a severe shortage of warehousing assets available to the market. Industrial real estate is still in strong demand with warehousing and logistics capabilities at a premium.

“Private investors and syndicates will no doubt recognise the very rare opportunity to acquire agri-industrial investments leased to a quality tenant that has a proven 70-year track record of industry-leading practice in Victoria.”

Gibsons Groundspread was originally founded by Bill Gibson in 1953 and today is a leading agricultural distributor and spreader of organic, commercial and custom blended bulk fertiliser and soil amendment solutions, operating locally from strategically placed state-of-the-art production and distribution sites.

Combining the latest technology and science with a 70-year history, Gibsons has developed a wide range of innovative crop and soil solutions and services to provide farmers and growers with the tools and resources to achieve a profitable return on investment.

The Rosedale, Dutson and Yarram sites are all in the Shire of Wellington, which has a population growth forecast of 25% over the next 2 decades. The Bayles property is within the Shire of Cardinia, one of Victoria’s fastest-growing municipalities, within neighbouring suburb Koo Wee Rup having seen an annual population growth of 4.0% over the last decade.

International Tenant Takes Up Prime Chapel Street Space
London-based boutique Ivory Thread Bridal is that the latest new tenant to take up space in the heart of Chapel Street, South Yarra as arguably Australia’s most famous shopping strip continues its post-COVID rebound.

Fitzroys’ Lewis Waddell negotiated the 3-year lease at $600 per sqm net at 487 Chapel Street on behalf of a local long-term investor.

Waddell said this is Ivory Thread Bridal’s 1st boutique in Australia after working in London.

“Chapel Street presented a more affordable option compared to High Street, Armadale and the boutique will join multiple like-minded operators in the area,” he said.

Eternal Bridal recently leased 517 Chapel Street in another deal by Waddell, that marked the tenant’s notable move from High Street, Armadale – a reversal of the trend that emerged in the mid-2000s, when some Chapel Street retailers began to make the move to the then-more affordable High Street. Another bridal studio, Rajashree, has just opened at 448 Chapel Street.

According to Fitzroys’ latest Walk The Strip report, Chapel Street, South Yarra’s vacancy rate has nearly halved in just 2 years, falling from 20.4% in 2020 to sit at 10.7% currently.

“Vacancy between the Jam Factory and Capitol Grand Building in particular has decreased rapidly over the last 12 to 18 months. It’s feeling really vibrant and high-quality operators are looking to this part of South Yarra.”

Waddell said mostly fashion and beauty operators enquired into the primely-located space.

Waddell has also recently negotiated the leases of 505 Chapel Street to fashion retailer Casa Amuk, which is moving from the Prahran part of the strip, and men’s clothing label Calibre at 483 Chapel Street, from where it will run a clearance outlet in addition to its recently leased 543-545 Chapel Street site. He has also just leased 587 Chapel Street to Portobello Jewellers.

“Landlords are meeting the market, and tenants are finding the rent and demographic opportunities on Chapel Street so appealing we’ve got tenants optimising their position within the area as well as actually moving from a different location altogether to get into the strip.”

Other recent fashion entrants include Saba and Gorman’s new flagships at 576-584 Chapel Street, as well as Anna Thomas and shoe retailer Zomp at 524-564 Chapel Street.

These moves followed the openings of Joe Bananas and M.J. Bale, also in deals by Waddell. Other new entrants to the strip include women’s fashion boutiques Lilita Martin, LTRO Studio and Leaterials, and retailer Landes Warehouse optimised its position.

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 2023 Fitzroys.