Weekly Wrap

Fitzroys Weekly Wrap - 28th April 2023

Posted on 28th April 2023

26-28 Cotham Road, Kew
The 635sqm refurbished 2-storey building sold to an investor for $5,006,666, on a 3.1% net yield. It has a 6+6+6-year lease to chefs Ayhan Erkoc and Federico Perez Lopez for their Cotham Dining restaurant and Nazar Wine Bar, both operating under the 1 lease.

289-291 Whitehorse Road, Balwyn

A local investor bought the 671sqm multi-tenanted building for $3.5 million, on a 3.8% yield. The building has 3 tenants on short-term leases expiring in April 2024 and returns $141,873pa. It is on a 490sqm Commercial 1-zoned site.

256 Brunswick Street, Fitzroy

An owner-occupier paid $2.55 million for the 3-level, 380sqm building on a 155sqm site.

2/121 Grices Road, Clyde North

An investor paid $950,000 on a 5.62% yield for the newly-fitted out 89sqm premises, which has a new 7-year lease plus options to RK Hair & Beauty returning $53,400pa plus GST.

Shops 3 and 4, 72 Doncaster Road, Balwyn North

A Pilates studio leased Shop 3 at $18,000pa and a body contouring clinic leased Shop 4 at $20,000pa.

412-416 Johnston Street, Abbotsford
Buzz Products bought the 1,500sqm 2-storey office for $7.2 million, and moved out of the office space in Church Street, Richmond that it part-owned.

Suite 5, 150 Chestnut Street, Cremorne

An owner-occupier paid $870,000 for the 155sqm self-contained office with 3 undercover car parks.

Suite 15, 1 Ricketts Road, Mount Waverley

A local owner-occupier bought the 191sqm office with 8 parking spaces for $960,000.

69 Trafalgar Road, Epping
An owner-occupier bought the vacant 2,737sqm allotment for $3 million, with plans to construct a new facility on the site.

48 Oxford Street, Collingwood

A Melbourne restaurateur bought the 220sqm building at a rate of $12,300/sqm, or around $2.7 million, on a 2.3% yield. Design agency Substance has a lease tail until 2028. The building is on 325sqm of land that is permitted for a 6-level mixed-use project.

71 Power Road, Boronia

Zoned Industrial 1, the 1492 sqm site with a 500sqm circa 1970s brick warehouse sold for $1.5 million.

7/53 Gateway Boulevard

The vacant 312sqm office and warehouse sold for $1 million.

757 Nepean Highway, Mornington
The 240sqm medical centre building sold with vacant possession for $1.51 million.

72 Stephensons Road, Mount Waverley
A skin group leased the 130sqm converted residential building, which has a medical permit for 2 full-time practitioners, at $48,000pa.

Inner-Melbourne Heritage Supersite Jack’s Magazine
Retail, hospitality and creative operators have the once-in-a-lifetime opportunity to be part of the revitalisation of inner-Melbourne heritage supersite Jack’s Magazine.

Fitzroys is offering a leasehold interest over 2 components of Jack’s Magazine on behalf of Victorian Government body Working Heritage.

Located just 5.2km from the CBD - between Flemington Racecourse and Highpoint Shopping Centre - Jack’s Magazine is one of Victoria’s most intriguing heritage places. Most of the 12.2ha site’s bluestone and brick buildings, tramways, tunnels and earth blast mounds were constructed amongst the parklands between 1875 and 1878, and were used for gunpowder magazine and ammunitions storage. They played a continuous role throughout the 20th century.

The buildings that are now set to be transformed comprise the circa-1875 865sqm small arms ammunitions store and the 1921-built 112sqm loading dock shed. Lease terms of up to 21 years are preferred, but up to 65 years are available with Ministerial approval.

Fitzroys’ James Lockwood and Franklin Gikas are managing the Registrations of Interest campaign that closes 5pm Wednesday, 24th May.

“We’re coming into this with a pretty open mind,” Lockwood said.

“We’re looking for operators that can embrace the heritage character of the surrounds and deliver something that creates a real buzz, and bring in visitors from across Melbourne and beyond.

“Melbourne is world-famous for hospitality and creative experiences. This is the next opportunity to create something really special and leave a mark on Melbourne’s cultural landscape,” he said.

He said the small arms ammunitions store - the larger of the 2 offerings - was a “blank canvas” for operators.

“There are opportunities for hospitality, retail, education, tourism, creative industries, and light industrial with a retail aspect,” he said.

“That could be anything from Melbourne’s next humming brewery or distillery to a function centre or creative workshop.”

The creative workshop aspect could see manufacturers of items showcase both the production process of their creations and sell the finished product on-site.

“Astute operators will see the potential for a brand-new Melbourne destination experience,” Lockwood said.

Lockwood said the 112sqm loading dock shed could be transformed into one of Melbourne’s famous cafés, opened up to overlook the Maribyrnong River and capitalise on the views and ambience of the water coming right up to the space.

“Spending on cafés, restaurants and takeaway food services is at a long-term high and Melburnians are continuing to embrace the city’s hospitality offerings.”

Jack’s Magazine was overseen by the Department of Defence before being decommissioned in 1993, and eventually given back to the State Government. Working Heritage is a Victorian government body responsible for securing community and commercial usage of heritage properties on Crown Land and was appointed Committee of Management for Jack’s Magazine in 2015.

Working Heritage’s vision for the site is that, “Jack’s Magazine will be a vibrant place of diverse activity that is used and valued by a broad range of people, communities and groups. Its unique character will be protected and enhanced by any change and developments. Its history will be understood, conserved and celebrated. It will be financially, environmentally and socially sustainable.”

Craigieburn Central Sells for $300m
Lendlease and its unlisted Australian Prime Property Fund Retail have sold the 65,000sqm Craigieburn Central shopping centre for $300 million to boutique fund manager IP Generation.

The deal includes 76,000sqm of surplus land. It is the biggest retail transaction in Victoria and 5 years, and nationally since late 2021.

Developed by Lendlease and opened in 2013, Craigieburn Central is anchored by Coles, Woolworths and Aldi and has a Kmart, Big W and United Cinemas, with 157 specialty stores in total, and a weighted average lease expiry (WALE) of 9.8 years. The centre generates a moving annual turnover (MAT) of $378 million.

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.