Weekly Wrap

Fitzroys Weekly Wrap - 3rd November 2023

Posted on 03rd November 2023

416 Toorak Road, Toorak
An investor bought the 149sqm building for $2.7 million, on a net yield of 1.8%. The property is on 196sqm of land and has a 3-year lease plus options to Euro Collections.

168 Martin Street, Brighton

An investor bought the 278sqm 2-level building, on a 330sqm landholding, for $2.108 million, on a 4.5% net yield. The property is fully leased with 5+5-year leases and returns $100,000pa plus outgoings and GST.

1 Duckett Street, Brunswick

The 274sqm 2-level property, occupied by Japanese restaurant Ima Asa Yoru sold for $1.55 million.

123-129 Howard Street, North Melbourne

An owner-occupier paid $2.57 million for the 249sqm building, on a 280sqm site. Ample Café and Bar has a month-to-month lease over the property.

296 Stephensons Road, Mount Waverley

The single-storey 213sqm building sold for $1.51 million, with a lease currently returning $56,774pa plus GST.

4/1 Hunt Way, Pakenham

The 93sqm property occupied by Sure Real Estate sold for $790,000. The agency’s 7-year lease runs to May 2030, with options to 2040, and returns $44,650pa plus GST net.

22/328 Reserve Road, Cheltenham
The 121sqm 2-level office space sold for $602,000, with a short-term lease to Nepean Group Pty Ltd until August 2024 returning $35,000pa net plus outgoings and GST.

Levels 1 & 2/79 Main Road West, St Albans

The 172sqm strata office suite on level 1 sold for $680,000, while the 128sqm suite on level 2 sold for $600,000.

3/56 Norcal Road, Nunawading
A local investor bought the 709sqm office, showroom and warehouse unit for $2.8 million.

15 Cato Street, Hawthorn

A plumbing business leased the 967sqm office and warehouse with on-site parking at $190,000pa net plus outgoings and GST.

120-122 Park Street, South Yarra
Offered for the first time in 81 years, the 371sqm landholding with 4 2-bedroom apartments sold for $6 million.

Medical Asset Sells After Highly Competitive EOI Process
Local, interstate and offshore buyer competition for a Bentleigh East medical clinic has reinforced the strong attraction of health and medical operator-leased assets to investors.

In the latest deal, Fitzroys agents Tom Fisher and Chris Kombi sold 5 Chester Street, adjacent to Monash Health’s Moorabbin Hospital, for $2.295 million after a highly competitive EOI process.

The 893sqm residential zoned landholding comprises a 215sqm building with five consulting rooms, reception, waiting areas and staff and administration rooms. It has long leases in place to Southern Breast Oncology and Dorevitch Pathology and sold on a tight 5.1% yield.

Fisher said 7 Expressions of Interest were received following a campaign that generated interest from local, interstate and offshore investors looking to acquire a health and medical asset. An interstate investor was the eventual purchaser.

“The market liked the property’s positioning within a highly-regarded medical precinct, anchored by Moorabbin Hospital and a wide range of allied health and medical operators, as well as the long lease to quality tenants,” Fisher said.

“The underlying land value of the substantial site was also a driver,” he said.

Fisher said strong levels of enquiry for healthcare investments are continuing in all parts of the market, from private investors through to institutional players.

“Since COVID, healthcare assets have been attractive for investors due to the essential service nature of the business. They have proven themselves to be remarkably resilient and as a result, they have become a growing target for investors at all levels of the market.

“We’re seeing more and more interest from private investors looking to get into the healthcare and medical sector, all the way up to institutional investors diversifying their portfolios towards this part of the market.”

Box Hill Set for First Build-to-Rent Project
Macquarie Bank-backed build-to-rent operator Local Residential has paid $360 million for Golden Age’s dual-tower SKY SQR apartment project, which will become Box Hill’s first build-to-rent offering.

Local Residential has a 900-unit pipeline across projects in Kensington and South Melbourne, with the SKY SQR to bring a further 425 apartments.

The Fender Katsalidis-designed project comprises 2 18-level towers above a 12,000sqm hospitality and retail podium precinct that also includes a childcare centre, and which Golden Age will retain ownership and management of.

Jeff Xu’s Golden Age bought the 7,344sqm car park site at 517-521 in 2016 from the City of Whitehorse for about $51 million.

The build-to-rent project will be one of the first outside of Melbourne’s CBD and inner-ring suburbs. Recent movements in the sector in Melbourne include UEM Sunrise striking a deal with Greystar that will see it deliver about 400 apartments at a value of $277 million on a former Collingwood dealership site on Hoddle Street, while Lendlease and Japan’s biggest homebuilder, Daiwa House, will develop a $650 million built-to-rent tower at 646-666 Flinders Street that will have 797 residences.

Lendlease was also recently announced as the developer and construction partner alongside the City of Melbourne for a $1.7 billion precinct next to Queen Victoria Market that will include build-to-rent housing.

    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.