Weekly Wrap

Fitzroys Weekly Wrap - 6th April 2023

Posted on 06th April 2023

1272 High Street, Armadale
The 165sqm strata-titled 2-storey building sold for $1.715 million, on a 4.3% yield. Beauty clinic Shaèp has a 3+3-year lease.

1235 Plenty Road, South Morang

The BP service station site of 3,413sqm sold for $10.35 million. It returns $548,000pa from a 12-year lease with options to 2052.

410 Main Road, Lower Plenty

Restaurateur and chef Paul Cooper plans to revive the original Stix and Stones restaurant and add a steak house after buying the vacant 7,415sqm site for $5.2 million. It has a 435sqm building and capacity for 200 guests.

275-277 Doncaster Road and 1, 1A & 1B Sylvander Street, Balwyn North

The 4 shops totalling 365sqm, on a single title of 507sqm, sold for $3.65 million.

549 Burwood Road, Hawthorn

The 262sqm site home to Pettah Road Café & Restaurant sold for $2.35 million, on a 4.88% yield. Pettah Road has a new 5+5+5-year lease over the Commercial 1-zoned property.

1/129-133 Beach Street, Frankston

An investor paid $950,000 for the 219sqm shop, which has a 5+5 year lease that brings $57,000pa.

204-218 Lygon Street, Carlton

Grillers Mark Burger Bar leased the 215sqm ground floor space at $65,000pa.

313 Flinders Lane, Melbourne
Charity organisation International Social Services sold off the vacant 280sqm whole office floor, in a building at the corner of Mill Place, for $2.5 million.

401 Riversdale Road, Camberwell

An owner-occupier bought the 387sqm 2-storey strata space for $2.65 million, with plans to turn it into a new medical clinic.

224 Queen Street, Melbourne
Quality Architects leased 118sqm on level 10 for 3 years at $525/sqm gross.

11-15 Rocklea Drive, Port Melbourne
The expanding Ashmark Institute bought the 700sqm office and warehouse for $3.2 million.

30-32 Downard Street, Braeside

The 815sqm office and warehouse, with an existing permit and fit-out for food-based businesses, on a 1,239sqm site, sold with vacant possession for $2.125 million.

18, 337 Bay Road. Cheltenham

The 104sqm warehouse with rear courtyard sold for $715,000.

22-24 Bennetts Lane, Melbourne
A private developer paid $3 million for the 140sqm site, which has a permit for a 13-level apartment building.

79 High Street, Wodonga
The 1,213sqm medical facility on a 2,728sqm site sold for $4.605 million, on a 6.34% yield. It has a new 10-year lease to the Family Doctor and a 5-year lease to Marina Radiology, and returns $292,129pa plus GST.

Echuca’s Historic Rice Mills Site Presents Huge Opportunity

Echuca’s historic Rice Mills site has hit the market, offering one of the largest development opportunities on the edge of the thriving city’s CBD in recent times.

Fitzroys’ David Bourke and Brent Glassford are managing the Expressions of Interest campaign which closes Thursday, 27th April at 2pm, on behalf of a local consortium from the region who have held the property for a number of years.

Expectations are circa $6.5 million.

The 3.518ha site is located at 36-90 Annesley Street, with Ogilvie Avenue-Murray Valley Highway exposure and access to the south and is just 350 metres from the commercial activity precinct and adjacent to Echuca train station.

“It’s a fantastic time for buying Echuca, which is headed for a really strong period of growth, and this site is one of the last vacant Commercial 1-zoned parcels of land in the region,” Bourke said.

“We’re expecting interest both from buyers who will look to develop the site as a whole or slice it up and develop in stages. There’s a whole range of uses that the site can be used for, including retail and showroom, office, hotel, childcare, aged care, specialist residential, and medical,” he said.

The site is positioned amongst large-format retail and showroom users such as Bunnings, Harvey Norman, Supercheap Auto, Beaurepaires and BCF, while there is a new Woolworths- anchored shopping centre being built nearby on the Northern Highway,

It was home to the iconic Rice Mills that stored and processed rice for decades, and employed many people in the area, until its closure in 2003. Currently, the site has a short-term lease hardstand area to Johns Lyng Group returning $58,200pa gross, while the Njernda Aboriginal Corporation occupies offices on the site expiring February 2025 with no options, bringing $34,975pa net. A further $6,500pa net in rent comes from promotional signage to the Ogilvie Avenue-Murray Valley Highway frontage.

The Rice Mills site was listed in the Campaspe Shire’s Echuca Commercial Strategy as a proposed option to accommodate new commercial uses in the Echuca CBD “which would involve formally identifying this site as part of the Echuca CBD and encouraging a range of uses”.

“Demand for all commercial, medical and specialist residential space and uses is set to spike in the coming years. The population of Echuca and Moama is circa 22,500 and is expected to grow over the next decade.

“Residential development projects like Wel.Co’s Yallarah and McMahon’s Place, which are 2,000-plus and 1,000-lot subdivisions respectively, are already selling or preparing to launch, while the 615ha Echuca West Community area is earmarked for 5,000 new homes accommodating 14,000 new residents.”

Following steady population growth over the past decade, Campaspe Shire Council is forecast to grow by 11.97% from 2023 to 2036.

“Echuca is a major commercial hub servicing the region with education, retail and commercial activities, the region’s population is further boosted throughout the year with an influx of tourists to the township and waterways for its water sports and historical Port and large fleet of paddle steamers,” Glassford said. Adding the region’s strong food and beverage offering with hotels, restaurant wineries, distilleries and breweries, tourism is a major generator of activity and injects $250 million each year into the Echuca economy.

The listing of the Rice Mills site comes as Fitzroys sells the 1.35ha site at 360-366, 378-386 & 388 Ogilvie Avenue in Echuca selling to respective landbankers from outside of the region looking to get a foothold in the fast-growing area.

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.