Weekly Wrap

Fitzroys Weekly Wrap - 21st February 2020

Posted on 21st February 2020

000 Retail 05

33 Fitzroy Street, St Kilda
Erdi Group bought a vacant shop next door to its Rydges hotel with Café Di Stasio on the other side, for $4.2 million. It will use the newly-bought site to develop a 130-room, 6-level QT Hotel around and above the Rydges building.

1B, 7 Yarra Street, South Yarra
An experienced Thai restaurant operator has leased a former Japanese restaurant space for 5 years at $52,000pa.

570 Malvern Road, Prahran
Female fashion label Digbys leased the 90sqm Hawksburn Village space at $85,000pa.

160 Queen Street, Melbourne
Vietnamese eatery Chom Chom Café leased the 110sqm space for 10 years at $75,000pa.

364-366 Brunswick Street, Fitzroy
A Spanish restaurant and bar will open at the 302sqm premises, which has a 15m frontage, and will pay $550/sqm gross.

000 Offices 05

36-40 Munster Terrace, North Melbourne
Nasdaq-listed LaMaitre Vascular sold the 2-level freehold building, next to the new Metro train station, for $2.701 million.

3 Shearson Crescent, Mentone
The 550sqm brick office and warehouse building on a 1,290sqm site sold for $1.1 million.

4/321 Camberwell Road, Camberwell
New Era Technology leased the refurbished 150sqm office at $45,000pa.

548 Burwood Road, Hawthorn
Developer Miura Group leased a 130sqm office for its new headquarters at $45,000pa.

000Industrial 05

12 Makland Drive, Derrimut
A private investor bought the pair of office and warehouse buildings in the Paramount Industrial Estate for $1.33 million at a 5.9% yield. The buildings have a combined area of 949sqm and return $78,400pa net.

26 Kingsley Close, Rowville
RIS Safety is moving from the western suburbs and leased the 813sqm facility for 3.5 years at $107/sqm.

19 Harker Street, Burwood
Crown Calisthenics signed a 10-year leased for 514sqm space at $110/sqm gross.

53 Paraweena Drive, Truganina
Town & Country Transport and Logistics leased the 1,281sqm office and warehouse facility within the Mangana Industrial Estate at $98/sqm.

000 Development 05

Lot A, 1106 Leakes Road, Mount Cottrell
A local developer paid $1.65 million for the 2,172sqm site, located within the Urban Growth Zoned Edgeleigh Estate.

101-103 White Street, Mordialloc
The 1,901sqm triangular sold for $3.050 million to a local developer, with a permit for 13 townhouses.

265 Boronia Road, Boronia
Zoned General Residential 2, the 3,428sqm site was bought by a local developer for $2.65 million.

000 Specialised 05

7 Coogee Street, Boronia
A Singapore-based investor bought the 80-bed Coogee Private Nursing Home property for $11.3 million, at a sub-6% yield. The aged care village is on a 6,300sqm site zoned General Residential 1, and leased on a 15+15-year term.

000 Talking Points 05

Historic Burke Road Auction Delivers Headline Result
A historic property in the prime section of Burke Road, Camberwell has delivered a headline result for the owners of more than 50 years, as the inner-east establishes itself further as one of Melbourne’s most popular retail property spots.

Fitzroys agents Chris James and David Bourke sold the dual-fronted freehold at 628 Burke Road, the former long-term home Camberwell Centre Newsagency, for $4.28 million.

The sale price reflected a remarkably high land rate of more than $15,000 per sqm.

James said the purchaser will look to redevelop and reposition the asset, utilising its potential to create separate tenancies and the dual frontages to Market Place and Burke Road, and reflecting their confidence in the prospects of Burke Road, Camberwell and the surrounding retail precinct.

“Burke Road, Camberwell retains its status as one of Melbourne’s best-known and highly regarded shopping strips, and the campaign generated interest from investors around Australia and from overseas,” he said.

“The Burke Road retail strip services an affluent and large catchment, in an accessible location within the Camberwell Junction precinct, and is the shopping and lifestyle heartbeat of Melbourne’s inner-east.”

Bourke said Melbourne retail strip properties continue to present a compelling investment proposition, particularly as interest rates are widely expected to remain low for some time.

“The purchaser was seeking a high-quality retail strip asset in a proven trading location within an affluent and loyal catchment, and with a bright outlook for rental growth.

“Medium and high-density residential development has fueled a population surge in Melbourne’s inner-east, increasing the immediate catchment and boosting trade.

“This has underpinned enquiry from investors, owner occupiers and tenants alike, and the vendors recognised the present environment provided an opportunity to get the best possible return on their generational asset.”

The local development pipeline includes plans for 43 apartments, restaurant, café and wine bar in a Burke Road building that will retain the heritage frontage of the State Savings Bank and take in the adjacent Sofia restaurant site, as well as projects such as the $175 million mixed-use, dual tower Camberwell Village, and Chinese development giant Dahua Group’s Hawthorn Park.

Land Tax Exemptions Following Bushfires

The State Revenue Office has made land tax exemptions for some properties following the recent bushfires.

Property destroyed or substantially damaged

Zero 2020 land tax for affected property

Property affected but not destroyed of substantially damaged

Relief from 2020 land tax for affected property considered on a case-by-case basis

Property used to provide free accommodation to people displaced by bushfires

Zero 2021 land tax for property used to provide free accommodation for six months.

Reduced 2021 land tax for property used to provide free accommodation for more than one month and less than six months (calculated proportionately)

If your property has been affected, please contact the Fitzroys Valuation team. We have worked with Councils across Melbourne and Victoria and maintain practical relationships with statutory valuers and Government authorities and would be happy to assist in understanding and handling the processes required.

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.