Weekly Wrap

Fitzroys Weekly Wrap - 15th December 2023

Posted on 15th December 2023

263 Normanby Road, South Melbourne
Positioned on the ground floor of the 31 level R.Iconic tower in the Fishermans Bend precinct, the strata titled retail premises leased to Coles sold for $17.5 million. The property was sold prior to Coles commencing its fitout works.

91-93 Toorak Road, Toorak

An investor bought the 415sqm retail building with 2 separate tenancies on a 579sqm site for $5.15 million, on a passing net yield of 1.8%.

379-381 St Georges Road, Thornbury

An investor bought the KFC-occupied drive-through restaurant for $5.65 million. The newly renewed 5-year lease option returns $156,763pa.

1032 Dandenong Road, Carnegie

The 750sqm 3 level building sold for $3.2 million. Princes Pool & Karaoke has a 5+5+5-year lease that began in April and returns $163,636pa plus GST.

7 Macedon Road, Templestowe Lower

An investor bought the 2-level 243sqm building on a 148sqm site for $2.36 million. Crust Pizza occupies the ground level on a 5-year lease and Healthway Clinic occupies level 1 on a 5-year term.

140 & 142A Martin Street, Brighton

The 480sqm building on a 597sqm site sold for $2.26 million. It is occupied by supermarket Grape & Grocer on a renewed 9-year deal.

25 Station Street, Diamond Creek

An investor paid $2.225 million for the 1,730sqm site that is home to Golden Hills Brewery. The property has a 752sqm building plus canopy and 19 on-site car parks, and is leased on a 10-year term to April 2029 with an option to 2034, returning $91,129pa plus GST.

28A Stanley Street, Collingwood

A local investor bought the 130sqm ground-floor property for $1.27 million. The property has a renewed 5-year lease to bottle shop and wine bar The Moon with 2 further 5-year options to 2037.

27 Grattan Street, Prahran
A local owner-occupier bought the vacant 100sqm office on a 198sqm site for $1.15 million.

120 Miller Street, West Melbourne

An owner-occupier in the education sector bought the 693sqm multi-level building for $6.275 million.

236-238 Dorcas Street, South Melbourne

An investor paid $3.35 million for Football Victoria’s old headquarters. The 3-level 478sqm building is on 233sqm of land and is leased to the Australian Film Institute until 2025.

1-3 Bloomburg Street & 2A Greenwood Street
A local landowner bought the 2,177sqm site for $9.6 million. It comprises a 1,445sqm office and warehouse and 480sqm brick commercial building.

16 Bolitho Road, Sunshine

The 320sqm warehouse on 427sqm of land sold for $1.1 million.

2/7 Dunstans Court, Thomastown

The 209sqm office and warehouse unit was leased at $30,000pa.

24-42 Alexandra Parade, Clifton Hill
US-based self-storage facility operator StorHub acquired the 2,425sqm site for $13 million, and has lodged a planning application for a new facility on the site.

382-384 High Street, Windsor

A developer paid $6.5 million for the 943sqm site, which has a scheme for a project with 22 apartments.

197-199 Murrindal Drive, Rowville
An investor paid $4.58 million for the 1,489sqm childcare centre site. Discovery Bay Early Learning has a 15-year net lease to 2037 with 2 further 10-year options, bringing $252,110pa plus GST.

Knockout Offer Secures Vacant Parkville Freehold
The $3.12 million sale of a versatile Parkville landholding has reaffirmed the demand for rare opportunities to deliver residential product in the heart of Melbourne’s largest and most coveted healthcare, research and education precinct.

Fitzroys’ Chris Kombi and Ben Liu sold the 452sqm site at 32 Park Drive on behalf of a vendor that had held the property for over 45 years.

The sale price reflected a high land rate of around $7,000/sqm.

The purchaser is a developer looking at a boutique residential redevelopment of the site, which is within a Neighbourhood Residential Zone. It was sold with an existing 2-storey residential building comprising 13 rooms and a triple car garage at rear.

Kombi said more than 70 enquiries were received during the campaign was received during the campaign, mainly from developers and value-add investors.

“This was a very rare opportunity to occupy, invest, refurbish or redevelop in the heart of Melbourne’s largest and most coveted healthcare, research and education precinct,” he said.

Kombi said the site is located just metres from The Royal Melbourne Hospital, The Royal Woman’s Hospital, Peter MacCallum Hospital, The Royal Children’s Hospital, University High School and the University of Melbourne, and the excellent public transport options nearby will be further enhanced by the under-construction Parkville Train Station, part of the Victorian Government’s $11 billion Metro Tunnel project.
“The location within Melbourne’s major healthcare, research and education precinct speaks for itself - there’s already a worker and student population of over 165,000 people and there’s obvious demand for residential product in the area,” Kombi said.

“The under-construction Parkville Train Station made this all the more appealing as a highly connected location offering easy accessibility to the fantastic hospitality and lifestyle offerings of the CBD and surrounding inner suburbs.

“It’s been widely publicised that there’s a difficult lending and operating environment in the building sector but the quality of and clear demand for the location gave developers huge confidence to compete for this site.”

Rosebud Plaza Trades for $134.5m
ASX-listed Charter Hall Retail REIT has divested Rosebud Plaza on the Mornington Peninsula for $134.5 million, on a yield of about 6%, to a high-net-worth investor.

The shopping centre recently underwent a $30 million refurbishment and has 23,333sqm of floor space. It is anchored by Coles, Woolworths and Kmart, and has over 60 specialty retailers including Sussan, Jay Jays, Specsavers, Williams and Bonds, with a weighted average lease expiry (WALE) of 4.0 years. It has 1,070 car parks.

REIV Sells Long-Term HQ
The REIV has sold its Camberwell home of nearly 50 years to residential developer Angle.

The 335 Camberwell Road property comprises a 2,070sqm office building on a 3,808sqm site. It sold on a land rate of nearly $7,000/sqm, or around $26.5 million.

    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.