Weekly Wrap

Fitzroys Weekly Wrap - 12th May 2023

Posted on 12th May 2023

Shops 5-8, 100 Hazel Glen Drive, Doreen
A local investor paid $3.3 million for the 455sqm strata-titled property, which is occupied by national restaurant chain La Porchetta and is located in a corner position within the Laurimar Town Centre.

96 Kingsway, Glen Waverley

Offered for the 1st time in over 50 years, the 135sqm vacant shop, formerly an MS op-shop, sold for $5.015 million. It is on a 186sqm site.

130 Montague Street, South Melbourne

Offered with vacant possession, the 137sqm showroom and residence building with 3 potential income streams sold for $1.37 million.

74 Toorak Road, South Yarra

Mexican restaurant La Cabra will open its 5th Melbourne location after leasing the 195sqm 2-level building for 5 years at $80,500pa net.

Level 2, 2-4 Ross Place, South Melbourne
A local investor bought the 390sqm floor with 4 parking spaces for $2 million.

117 Ferrars Street, South Melbourne

Cybersecurity firm Securiton paid $1.32 million for the 255sqm office.

335 Flinders Lane, Melbourne

The National Institute of Technology signed a 3-year lease over the 295sqm space at $545/sqm. The space is owned by Perissa Holdings Pty Ltd.

49 Lakewood Boulevard, Carrum Downs
Expanding promo merchandise company Promotional Centre paid $4.35 million for the 1,800sqm warehouse, which is on a 2,450sqm Industrial 1-zoned site.

10 Nicholson Street, Coburg

The 628sqm office and warehouse on a 758sqm Commercial 1-zoned site sold for $1.825 million. Wakim Antique Restorations has a leased until February 2027 returning $57,963pa.

2/20 Triholm Avenue, Laverton

A local investor bought the 303sqm warehouse unit for $800,000, on a 5.1% yield. It has a 12-month lease term to Melbourne Collision Repair Centre.

78 Logis Boulevard, Dandenong South

Global adhesives manufacturer Orafol leased the 2,533sqm building for 5 years at $334,356pa.

310-312 Springvale Road, Forest Hill
An investor paid $6.9 million for the childcare centre property, on a 5.08% yield. It is leased to Montessori Academy until 2036 with 2 10-year options, returning $350,762pa plus GST, and is licenced for 96 places.

Local Owner Boosts Moonee Ponds Landholdings

A local owner has boosted their Moonee Ponds land holdings amid the suburb’s generational development boom.

In a generational transaction, Fitzroys’ Chris Kombi and Ervin Niyaz sold 43 Hall Street for $2.95 million on behalf of a local private investor who had owned the property for 47 years.

The 233sqm site is within a valuable Activity Centre Zone and has 10m of frontage. It comprises a fully-leased 320sqm building with 2 ground-floor shops and 2 1st-floor offices, with 4 on-site car parks at the rear. The property sold on a tight 3.7% return on the net passing rental.

Kombi said multiple bidders, including landbankers and investors, competed for the property.

“We had investors looking to get into what is a fast up-and-coming retail and lifestyle precinct, with both excellent trading prospects and future rental growth potential due to the ongoing completion of new buildings in the surrounds,” Kombi said.

“This was also a chance to invest in what is becoming the lifestyle hub of Melbourne’s north- west with a proven track record for capital growth.

“We’re seeing landbankers securing well-located commercial properties with steady cash flows from quality tenants, happy to assess their plans and ride out the supply, material and labour constraints being faced in the development sector.”

Niyaz said, “Despite the higher interest rates we’re still seeing a good depth of enquiry in campaigns, multiple bidders at auctions and strong results.”

Hall Street is part of the Moonee Ponds retail and lifestyle precinct and is anchored by Puckle Street - which according to Fitzroys’ Walk The Strip report, saw vacancies came down from 4.6% to 3.2% in 2022, among the lowest of Melbourne’s iconic shopping strips - and includes a Woolworths supermarket, Moonee Ponds Central, and a number of local and national eateries and service retailers.

Following the completion of multiple residential and commercial projects in recent years, the precinct will be further supported by ongoing developments such as Penny Lane, which will deliver apartments, retail, hospitality and a Palace Cinema, and the future $2 billion commercial and residential overhaul of the Moonee Valley Racecourse close by that will introduce new residential and commercial buildings.

Woolworths Offloads Neighbourhood Shopping Centre

Woolworths has offloaded the Cranbourne West Shopping Centre to Sydney investment firm Mintus for $41.8 million.

The 6,051sqm Woolworths-anchored neighbourhood shopping centre sold on a 5.36% yield. It also comprises a BWS, a mini-major, 11 specialty tenants, medical tenants, a kiosk and an ATM, and has a weighted average lease expiry (WALE) of 7.6 years.

The sale included 1.12 hectares of undeveloped Commercial 1-zoned land.

Mount Waverley Office Building Fetches $19.65m

A Mount Waverley office building occupied by the Australian Electoral Commission (AEC) has sold for $19.65 million.

The AEC, which has occupied the 5,135sqm building at 17-21 Hardner Road since 2021, has a 3-year lease with 2 further 3-year options that currently returns $1.5 million pa in rent. The sale price reflected a 7.66% yield.

$17m Worth of South Yarra Land Sells

South Yarra has seen 2 blocks sell for a combined $17 million.

A developer paid $8 million for the 774sqm General Residential-zoned corner site at 1-17 Adams Street, which is approved for a 4-level project comprising 7 luxury apartments.

Meanwhile, the 988sqm block of land at 39 Rockley Road, which has 13 apartments of 100sqm-plus each, sold for $9,001,000. The property has a projected rental income of $388,000pa.

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.