Weekly Wrap

Fitzroys Weekly Wrap - 18th August 2023

Posted on 18th August 2023

362 Glen Huntly Road, Elsternwick
A local investor bought the 180sqm building on a 255sqm site for $1.685 million, on a 3.7% net yield.

428/452 Wyndham Street, Shepparton

An investor paid $13 million for the Dan Murphy’s-anchored retail asset, reflecting a 5.76% yield. The 2,732sqm asset has a 46% weighting to Dan Murphy’s and is supported by 5 specialty retailers, and is on a 6,650sqm Activity Centre-zoned site.

473 High Street, Prahran

The 245sqm shop and dwelling on a 158sqm Commercial 1-zoned site sold for $2.051 million, on a 4.6% yield. Wholesale textile importer and distributor Ascraft/Motivo leases the 110sqm retail space. The property returns $94,305pa plus GST.

236-238 Bridge Road, Richmond

An investor paid $2.48 million on a 3.74% yield for the 397sqm building, which is leased on a 5+5+5+5-year term from January 2022 to Stronger Healthcare and returns $92,700pa plus outgoings and GST.

234 Bridge Road, Richmond

The 185sqm building sold for $1.48 million on a 2.95% yield. It has a 5+5+3-year lease from May 2020 to Xiang Hair returning $43,709pa plus outgoings and GST.

1/672 Glenferrie Road, Hawthorn

The 164sqm fitted-out hospitality tenancy, previously occupied by L’Burger, was leased for $140,000pa, or $853/sqm.

1 Kipling Street, Richmond
The vacant 200sqm warehouse, used as offices, sold for $1.547 million.

Suite 314/19 Milton Parade, Malvern

The 62sqm suite within a circa-2000 office building was leased for $24,000pa, or $387/sqm.

107 Metrolink Circuit, Campbellfield
The 1,796sqm office and warehouse, on a 2,447sqm Industrial 1-zoned site, sold with vacant possession for $5.175 million.

2/11-13 Lakewood Boulevard, Braeside

The 598sqm office and warehouse facility on an 827sqm site sold for $1.585 million, on a 4.55% yield. It is leased to Tokyo Stock Exchange-listed Fujitsu subsidiary Precise Air on a 3-year lease to October 2025 with an option to 2028, returning $72,100pa plus GST.

228 Wolseley Place, Thomastown

The 325sqm office and warehouse on a 393sqm site sold for $1.04 million.

Unit 2, 802 Burwood Highway, Ferntree Gully

Bargain store Arthur Daley’s leased the 1,336sqm showroom and warehouse property for 5 years plus an option at $140/sqm plus outgoings and GST.

50 Rooks Road, Nunawading

The 658sqm office and warehouse with 7 on-site car spaces was leased for $110,000pa, or $167/sqm.

118-122 Ryrie Street & 2-4 Wright Place, Geelong
The 912sqm island site in Geelong’s CBD sold for $3.4 million, with plans for repositioning. The property has 4 titles and is partly tenanted by GMHBA Dental, with the 3 other buildings vacant or soon to be vacant.

1023 Howitt Street, Ballarat
The 275sqm building occupied by a Bupa dental clinic sold for $1.785 million, on a 4.54% yield. It is on a 1,373sqm site with 16 on-title car parks. Bupa has a 5-year lease to March 2027 plus an option to 2032 returning $81,030pa plus GST.

Local Operator Nabs Occupier’s Dream With Great Logistics for $5.95m
A local operator has pounced at the opportunity to buy their own premises after a highly- functional logistics facility on the same well-located street was put on the market.

The $5.95 million sale of47 Burns Road, Altonawas negotiated by Fitzroys’ Brent Glassford and Marco Sandrin, who generated over 105 enquiries during the campaign and received multiple offers.

The highly-functional 2,200sqm facility comprises a high-clearance, clear-span warehouse of 2,000sqm, a 200sqm dual-level corporate office with staff amenities, and four on-grade roller shutter doors. It is on a 4,666sqm site with a large concrete hardstand at the rear, on-site parking at the front and rear, and an automated security gate.

The property is just moments from the Kororoit Creek Road and Princes Freeway diamond interchange, and 3 kilometres to a major freeway connector, providing a gateway to Melbourne’s CBD, north and east.

“The functionality and location of the property were the huge drawcards here, making for an occupier’s dream,” Glassford said.

He said the buyer is currently located in the same street who had been wanting to own their own property for some time and jumped at the opportunity.

“The purchaser had a lot of competition - the property is a good size and offers front, side and rear access via multiple roller shutter doors, and is in a fantastic location close to the Princes Freeway, intermodal terminals and the major Western Ring Road and Westgate Freeway connector.

“The location is clearly a winner given the purchaser wanted to remain in the same street. Strong interest and offers from owner-occupiers during a campaign always provide a good bellwether of the fundamentals of a property.”

Sandrin said strong interest also came from investors looking to capitalise on the ongoing rent growth story in Melbourne’s western industrial market.

“Melbourne’s west continues to see historically high rental growth patterns amid a shortage of quality existing product and elevated demand from businesses looking for functional, well-located facilities. Investors were rightly confident they could quickly find a tenant and capture the rental uplift seen in the market.

Sandrin added, “Values for these types of properties in Melbourne’s western industrial market continue to hold firm as a result of the competition between both investors and owner-occupiers. The depth of buyers is making for consistently competitive campaigns.”

Hawthorn Office Building Sells for $18m
United Petroleum founders Eddie Hirsch and Avi Silver have bought a vacant Hawthorn building that was formerly Bunnings’ offices for $17 million.

Bunnings had occupied the 2-storey, 2,739sqm building at 465 Auburn Road until its move to the Botanicca complex in Richmond.

The deal follows the sale of another inner-east office building, in Kew, for between $17 million and $18 million. A property investment syndicate bought the 2,286sqm building at 85-87 High Street, which is on a 1,840sqm site with planning approval for a 10-level, 118-unit apartment project.

Among the other inner Melbourne office deals this year was the $19 million sale of 2-6 Southampton Crescent in Abbotsford, negotiated by Fitzroys’ Paul Burns and Chris James. The 6,048sqm building is 28% leased to ASX-listed Starpharma, and the new owner is a self-storage operator that intends to reposition the building and utilise an approved permit for surrounding land to create a self-storage complex.

Also in Abbotsford, Rick Jamieson bought the vacant 112 Trenerry Crescent for a reported $30 million from the Zagame family. The former Austral Silk and Cotton Mills factory is now a 4-level office building, currently vacant.

Developer Picks Up Kew Site for $35m
Developer Piccolo has paid circa $35 million for a corner site in Kew, with plans for a $180 million luxury residential development.

The 18 Barry Street property spans 8,745sqm at the corner of A’Beckett Street and is currently occupied by single and 2-storey buildings that formed a residential aged care facility, configured to 146 beds in 50 rooms and with 36 car parks. The site is zoned General Residential Zone Schedule 4.

    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.