Weekly Wrap

Fitzroys Weekly Wrap - 21st July 2023

Posted on 21st July 2023

5 Symphony Lane, Wollert
The BP leased service station sold for $6.756 million, on a 5.16% yield.

206 Wellington Street, Collingwood

A national not-for-profit organisation bought the 325sqm building on a 383sqm site for $3.056 million.

1123 Toorak Road, Camberwell

A local investor paid $1.13 million for the 160sqm 2-level shop and dwelling, on a 254sqm site. The ground floor is leased to Lotus Hair Salon on a renewed 3+3-year lease returning $30,416pa plus outgoings and GST.

414 Bluff Road, Hampton

The 58sqm building on 198sqm of land sold for $750,000. It is occupied by Australia Post on a 5+5-year term that began in July 2020 and returns $28,428pa.

430 Little Collins Street, Melbourne
A financial services company already located within the 1883-constructed Normanby Chambers building bought 2 office suites on level 2 of the property at $9,500/sqm.

Unit 1/214-224 Wellington Road, Clayton
The dual-tenanted 1,062sqm warehouse, showroom and office building sold for $3.19 million. It returns $159,750pa.

13/5-7 Paul Court, Dandenong

The 119sqm brick office and warehouse unit sold for $356,000.

17-23 Williamson Road, Maidstone

PVH, the US clothing company that owns brands including Calvin Klein and Tommy Hilfiger, leased the 3,870sqm office and warehouse building on a 1.3ha site on a long-term lease at $115/sqm.

129-131 Sussex Street, Pascoe Vale

The 1,923sqm office and warehouse on a 2,540sqm site was leased at $280,000pa.

4 Nelson Street, Cranbourne East
Property developer Solovey paid $7.425 million for the 2.92ha site, which has permit approval for 54 lots.

335 Berwick-Cranbourne Road, Clyde North
The 12,140sqm corner parcel, zoned Urban Growth, sold for $6 million.

98 Little Malop Street, Geelong
The owner-operators of Murphys Geelong have bought the 170-year-old former Eureka Hotel for $1.5 million. The hotel was originally built as a public house for traders at the nearby docks during the gold rush, and was rebranded as the Westend Hotel in 2019.

102-104 Gordon Street, Footscray

Inspiring Early Minds leased the 868sqm childcare centre, due for completion in about 18 months, at circa $600,000pa, or $5,000 per place.

Dominant Health and Medical and Investment Plus Land Offering
Investors, owner-occupiers and developers have the chance to acquire a dominant health and medical investment plus land offering in the heart of the busy Boronia shopping and lifestyle precinct.

Fitzroys’ Tom Fisher and David Bourke have been appointed as exclusive selling agents for 252 Dorset Road and 9 Chandler Road by a private owner who has held the property for 28 years. Expressions of Interest close Wednesday, 26 July at 3pm.

Expectations are of $5.25 million-plus.

The properties are on 1 title and offer a total combined land area of 1,528sqm.

252 Dorset Road comprises a dominant 1,542sqm 3-level freehold building occupied by a strong mix of established health tenants including Dorevitch Pathology, Nillumbik

Community Health Services and Happy Chatter Speech Pathologists, currently returning $241,271 per annum plus outgoings and GST.

Level 1 of the building is currently vacant and presents an excellent chance to part owner-occupy, or can be leased out, taking the building’s income to $350,000pa.

The building has dual frontages to both Dorset Road (11.9m) and Dorset Square (16.6m). 9 Chandler Road encompasses 954sqm, is currently utilised as a car park, and has untapped future potential (STPA).

Both sites offer flexible Commercial 1 zoning.

“We’ve seen bigger amounts of private and institutional capital allocated towards healthcare real estate, with the sector offering a strong growth outlook and more reliability than other sectors given its non-discretionary nature and ongoing government support,” Fisher said.

“We’re expecting a strong response from investors looking for stable long-term tenants, while it’s also a rare chance for an occupier to set up right amongst high-quality operators, in a popular commercial centre, and concurrently generate a strong income.”

The site is positioned within the heart of the popular retail and commercial centre adjacent to Dorset Square Shopping Centre - home to K-Mart, Coles, Aus Post, Liquorland and several long-standing local businesses. In addition, there are other notable national and local retailers nearby including Woolworths, McDonalds, ANZ, CBA, Bendigo Bank, Bakers Delight, Salvo’s, Boronia Hotel, Hoops Sports Bar and more.

The site also has direct access to a large public car park within Dorset Square.

Profile.ID states that the population of Boronia is in the order of 23,923 people, whilst the City of Knox has a resident population of 159,404 people. The Boronia commercial centre services a wide catchment, attracting shoppers and visitors from across the municipality.

Bourke said, “The Chandler Road component presents a unique chance to make a new addition to a thriving commercial centre that has the attention of a broad catchment.

“The flexible Commercial 1 zoning allows for a range of outcomes, and a chance to make this overall an incredibly dynamic holding.”

The property is also well-serviced by public transport with Boronia Train Station providing access to other surrounding eastern suburbs and the CBD. The site has ease of access to major arterials including Burwood Highway, Ferntree Gully Road, and Eastlink.

Frasers Property Industrial BuysCraigieburn Land for $87m
Frasers Property Industrial has acquired a 41ha land parcel in Craigieburn for $87 million, which it intends to use for a master-planned industrial estate.

The 50-70 Kinlock Court site has a net developable area of more than 33ha and is within the Craigieburn Employment Area Precinct.

It was acquired from Cadence Property Group and Linkage Property. Cadence and Frasers Property Industrial are delivering infrastructure elements to the Employment Area Precinct, while Cadence will continue developing its adjoining 65ha, $650 million industrial estate.

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.