Weekly Wrap

Fitzroys Weekly Wrap - 7th February 2020

Posted on 07th February 2020

375 & 375A Brunswick Street, Fitzroy
An interstate investor paid $2.038 million for the fully leased 2-storey shop and dwelling of 220sqm. The property is on a 148sqm corner site with frontage of around 50m to Brunswick Street and Rose Street.

69-73 Pelham Street, Carlton
An owner occupier bought the vacant 225sqm building, comprising 2 shops on separate titles, for $1,728,888.

9 Hamilton Walk, Mount Waverley
The 108sqm building sold for $1.605 million. Shine Café has a 5-year lease with options that brings $57,000pa net plus outgoings and GST.

885 High Street, Thornbury
St Vincent de Paul leased the 550sqm ground floor space with a frontage of 15m in a 5+5+5-year deal to open a new Vinnies retail store.

7 Harper Street, Abbotsford
Christian McCann Auctions leased the 1,361sqm warehouse at $125,000pa net for its new auction house, moving out of Richmond for the first time in almost 90 years.

Suite 101/198 Harbour Esplanade, Docklands
The Melbourne offices of AFL club GWS Giants sold on a 6% yield, and a building rate of $5,700/sqm. GWS recently signed a 3+3-year lease with 4% fixed annual increases.

541 Blackburn Road, Mount Waverley
Singapore-listed investment group Ocean Sky International Ltd has bought the 4-level office building for $21.83 million, at a 5.94% yield, from Melbourne fund manager Vantage. The 3,628 sqm building is anchored by NAB and returns $1.3 million net pa, and is on a 6,210sqm site with 157 parking spaces.

133 Abbotsford Street, North Melbourne
Owner occupier Photomapping Services sold the 3-level, 700sqm building on a 692sqm corner site to a local investor for $6.375 million, at a 4.2% yield.

Level 1, 55 Exhibition Street, Melbourne
Salta bought the whole floor for $5.1 million, at $20,816/sqm. through its 63 Exhibition Street vehicle which is developing a hotel next door. Salta now owns 2 levels in the 7-level building, formerly known as ACCI House. Commonwealth Superannuation Corporation, which owns the adjacent 101 Collins Street office tower, recently bought Level 3 for $4.75 million.

313 La Trobe Street, Melbourne
DGIT Systems sold the level 4 office for $3.1 million to a group of local investors in a 3-year sale and leaseback deal.

82 Drake Boulevard, Altona
A local investor bought the 2,000sqm office, warehouse and showroom, on a 3,858sqm site within the Altona Access Estate, for $3.32 million from Drake Boulevard Pty Ltd.

11/88 Wirraway Drive, Port Melbourne
An owner occupier bought the vacant 65sqm office and warehouse with mezzanine space for $475,000.

31 Flinders Lane, Melbourne
Hacer Group leased 320sqm in the building for 2 years, at around $670-$700/sqm gross. Hendel Holdings and RMPH Holdings own the fully-fitted space.

Units 1-5, 187-201 Rooks Road, Vermont
Brendan Sullivan purchased 5 separately-titled industrial units in one line for $5.85 million, at a 6.55% yield. They range from 529sqm to 870sqm and return a combined $383,000pa.

90 Willandra Drive, Epping
An owner-occupier bought the 1,409sqm facility, on a 1,956sqm site, before completion for $2,381,210.

10 Alvina Street, Oakleigh South
Chinese developer Heng Si International bought the 2ha former Clayton West primary site for $23 million from Spire Group. The property has a permit for 96 townhouses.

152 Como Parade West, Parkdale
Calvary Healthcare has bought the 4,765sqm Parkdale hospital site for $10.2 million. It has been leasing the 3,500sqm facility while its Bethlehem hospital in Caulfield is redeveloped.

110 Elizabeth Drive, Rosebud
Local developer Piermont Group paid $6.4 million for the 24,412sqm site, which is zoned General Residential 1 and has a 342m frontage.

15 Leamington Crescent, Caulfield East
A local developer paid $1.695 million for the 829sqm site, which has an Edwardian house and outbuildings.

2B McPherson Street, Moonee Ponds
Moonee Valley Racing Club sold the 854sqm new childcare centre to a private local syndicate for $6.605 million, at a 4.9% yield. Nido Early School has a 20+10+10-year lease. The 1,929sqm site is on a corner of the 40ha Moonee Valley Racecourse precinct that will undergo a $2 billion mixed-use redevelopment in the coming years.

Melbourne’s Office Market Retains Lowest Vacancy Rate
Melbourne has retained the title of Australia’s tightest CBD office market, according to the Property Council of Australia, with a sharp 3.2% vacancy rate as it readies for the biggest wave of new stock in nearly 30 years.

More than 400,000sqm of new space is expected to come online in 2020, and almost 90% of that is pre-committed. Around 600,000sqm of space will have been introduced by the end of 2022, 70% of which is pre-committed.

The CBD will account for 57% of new space coming online in the CBD markets across the country this year, making it the fastest-expanding city in Australia.

East Melbourne recorded the lowest non-CBD vacancy rate in the country at 2.4%.

Bourke Street Freehold Sells for $22.5m
A local investor paid $22.5 million for the 2-level building at 384 Bourke Street, which will soon become a new bar and restaurant concept by Eddie Muto.

Currently occupied by OPSM and located near the popular Hardware Lane dining laneway, the property was leased in December for 10 years to Lola Restaurant & Bar at $586,275pa. The vendor was investor M & M Assets.

Venues by Muto’s Barman & Larder group include Left Bank on South Bank, Meat Market, Henry & the Fox, Common Man.

Macau Investor Makes Moorabbin Move
A large format retail property in Moorabbin leased to Freedom and Barbeques Galore has sold to a Macau investor for $21.8 million.

The vendor of 1000 Nepean Highway was Greenlit Brands, formerly known as Steinhoff Asia Pacific and which is Australia’s second-biggest furniture retailer.

The recently refurbished 2-storey, 4,376sqm building sold at a 5.29% yield. It has 65 basement parking spaces and is next door to the Moorabbin Homemaker Centre.

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 2020 Fitzroys.