Weekly Wrap

Fitzroys Weekly Wrap - 19th May 2023

Posted on 19th May 2023

42, 44 & 46 Puckle Street, Moonee Ponds
A land banking investor purchased the 3 side by side freeholds with a combined land area of 548sqm for $5,610,000. All three shops are leased to separate tenants and sold on an average yield of 3.43% and a land rate of $10,226/sqm.

Cnr Oherns & Cotter Roads, Epping

EG Group divested the 3,483sqm Ampol fuel station site for $7.4 million, on a 6% yield. It has a brand-new 15-year lease plus options that returns $444,225pa.

902-914 Glen Huntly Road, Caulfield Sout
An owner-occupier bought the 1,302sqm site for $5.55 million. It has a 2-storey showroom and commercial building.

1025-1029 Mount Alexander Road, Essendon

The 3 shops totalling 340sqm of building area, on 1,014sqm of Commercial 1-zoned land, sold for $3.4 million, on a land rate of $3,353/sqm.

1120 Mount Alexander Road, Essendon

Multinational Mexican fast-food chain Zambrero leased the freshly renovated 99sqm property on a 7+5-year term at $65,000pa plus outgoings.

90 Maling Road, Canterbury

An expanding home décor business signed a 3-year lease over the 150sqm property at $55,000pa.

Level 7, 278 Collins Street, Melbourne
An owner-occupier bought the 388sqm floor from DC Capital Investment for around $3 million.

332 Kings Way, South Melbourne

DSA Lawyers paid $1.55 million for the 330sqm strata office.

Suite 2, 431 Burke Road, Glen Iris

An oil and gas construction firm bought the 218sqm ground floor office for $1.5 million.

335 Flinders Lane, Melbourne

Private educator, The Australian National Institute of Technology leased the 295sqm space at $545/sqm.

45-49 Sackville Street, Collingwood
The 511sqm Commercial 2-zoned landholding with a 668sqm building sold for $3.6 million to a national retailer. It has a lease until December 2026 with a 5-year option.

164-168 Williams Road, Dandenong South

The vacant 1,800sqm warehouse with a fully operational waste recycling facility, on a 2,300sqm site, sold for $3.3 million.

45 Paramount Boulevard, Cranbourne West

The 916sqm office and warehouse sold prior to practical completion to an owner-occupier for $2,757,160.

3/65-71 Heatherdale Road, Ringwood

The 280sqm unit sold for $813,789, on a 4.42% yield.

Wyndham Vale Land Sells to Oreana Property for $13.8m
A parcel of land in Melbourne’s booming western corridor suburb of Wyndham Vale has been bought by diversified developer Oreana Property Group for $13.8 million.

The 20.77ha site at 290 Hobbs Road, was sold via Expressions of Interest by Fitzroys’ Brent Glassford and Marco Sandrin, in conjunction with Andrew Lepa of Oliver Hume, on behalf of a private owner.

Located within the coveted City of Wyndham, the land is situated within the approved Ballan Road Precinct Structure Plan and features Werribee River frontage.

“Oreana Property’s acquisition will bring much-needed housing supply to Melbourne’s western growth corridor,” Glassford said.

“The market showed all the more confidence in the site given it is surrounded by developments by major developers including Stockland, Frasers Property, Villawood, Central Equity and Lotus Living.”

The City of Wyndham’s population of 322,226 is expected to surge to 501,634 by 2041, according to research firm .id Consulting. Wyndham Vale’s population will surge by 67.5% in that time, from 25,662 to 42,986.

“Australia is forecast to receive a record intake of migrants with 400,000 expected this financial year and 315,000 in the following year, for a total of 715,000 people,” Sandrin said.

“There’s currently a severe housing shortage and Australia is about to welcome a record intake of migrants, putting huge upwards pressure on demand for new dwellings.

“Material costs, labour shortages and barriers to funding have made construction of some projects more difficult, but the pending major boost to demand for housing makes this growth corridor site an attractive proposition.

“We had more than 50 enquiries from local and national developers who are all anticipating market conditions to become much more favourable in the short to medium-term.”

A report recently released by Infrastructure Victoria stated that Melbourne will need about 1.3 million new homes by 2051, or around 44,000 new homes every year for 30 years’ prior3.

Oreana Group co-managing director Tony Sass said the company’s focus was on delivering essential housing, retail and community services in Melbourne’s greenfield areas.

“The Wyndham Vale acquisition is part of Oreana’s ongoing commitment to provide growing communities with quality, affordable housing that meets the needs of homebuyers now and into the future,” he said.

“Wherever we work, we aim to equip communities with what they need to thrive.

“Wyndham Vale needs modern and affordable housing to keep up with demand and Oreana has the ability to deliver quality homes quickly, and the potential to include additional services depending on community needs.”

Oreana Property’s Wyndham Vale acquisition follows its recent agreement with Dennis Family Corporation to take on a 125ha parcel in the northern fringe suburb of Donnybrook for a $700 million-plus house and land subdivision that includes 1,400 lots, a town centre, secondary school, sports fields and other open space.

Also recently, Oreana bought a 1.85ha corner development site in Cranbourne from McDonald’s Australia for $8.3 million.

Meanwhile, in the inner suburbs, it is planning a $250 million mixed-use development on the South Yarra Square site on Toorak Road, which will include a 116-room luxury hotel and an office tower.

Prominent Restaurateur Buys $13m of CBD Office Space
Restaurateur Chris Lucas has paid $13 million for 2 levels of office space within Golden Age’s new $200 million tower in the CBD.

The 660sqm space will become the new corporate headquarters of his hospitality group Lucas Restaurants, which operates popular venues including Society, Chin Chin, Grill Americano, Kisume, Yakimono and Lillian Brasserie – many of which are located nearby.

Golden Age’s new 28-storey tower at 130 Little Collins Street is being constructed on the site of the former headquarters of the Uniting Church.

About 70% of the strata-titled 9,800sqm building has sold, at prices ranging from $16,000 to $21,000/sqm.

$50m of Dandenong South Industrial Sites Sell
Arrow Capital Partners has sold a Dandenong South industrial estate for $27 million.

The 29,700sqm site at 34-36 Commercial Drive currently has 3 standalone buildings that total about 13,700sqm.

Arrow Capital Partners paid $13.68 million for the property 2 years ago.

Also in the suburb, Charter Hall recently offloaded the 9,484 sqm building at 1-11 Remington Drive, on a 16,616 sqm site for $22.3 million.

The purchaser is owner-occupier sheet metal company Design Group.

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.