Weekly Wrap

Fitzroys Weekly Wrap - 29th March 2024

Posted on 29th March 2024

98-100 Lygon Street, Brunswick East
An investor paid $3.38 million on a 4.6% yield for the 261sqm building, which is on a 345sqm site and leased to Maggie’s Snacks & Liquor on a 10-year deal.

3-11 Mitchell Street, Doncaster East

A private investor bought the 302sqm eatery-occupied property within the Jackson Court Shopping Centre for $2.386 million.

338A Clayton Road, Clayton

An overseas investor paid $1.9 million for the 220sqm shop, which is occupied by eatery Tianjin Style Canteen.

462 Church Street, Cremorne

The vacant 181sqm building, fully-fitted for hospitality use, on a 156sqm site sold for $1.425 million.

2 Adakite Drive, Berwick

The 65sqm space occupied by Clean Streak Laundry sold for $835,000 on a 5.1% yield. It has a new 10-year lease plus an option to 2038.

167-169 Buckhurst Street, South Melbourne
A Melbourne CBD-based church bought the 502sqm building on a 343sqm Capital City-zoned site for its new home, paying $2.55 million.

10/3 Bromham Place, Richmond

The 222sqm unit within office development The Ternary was leased at $65,000pa.

15 Harker Street, Burwood
The 724sqm office and warehouse on a 798sqm site sold with vacant possession for $2.31 million. It has 8 on-site undercover car parks.

10-20 Christensen Street, Cheltenham

The 420sqm Warehouse 14 within the industrial complex sold for $1.95 million, while the 243sqm Warehouse 2 sold for $1.2 million.

166 Grange Road, Alphington

The 315sqm clear span warehouse was leased at $50,000pa plus GST and will be used as a Bosch automotive service centre.

1445-1453 Main Road, Eltham
A healthcare provider paid $3 million for the 5,138sqm site, which is zoned General Residential.

263-265 Centre Road, Bentleigh
An investor bought the purpose-built 93-place childcare facility for $6,706,800 on a 4.7% yield. Evolve Early Learning, trading as Roseberry House, is 4 years into a 10+10+10-year lease over the 1,545sqm Commercial 1-zoned site.

84-88 Bridge Road & 2 Verity Street, Richmond

The 3-level, 1,227sqm building occupied by ASX-listed Healius subsidiary Lumus Imaging sold to a Melbourne family for $24 million, on a 6.34% yield. It has a 20-year lease to 2035 plus options and is on a 1,054sqm Commercial 1-zoned corner site. An unlisted Australian Unity healthcare fund was the vendor.

Knox City Council Assets Going Under the Hammer at Portfolio Auction
Knox City Council is offering 3 excellent Melbourne development opportunities to the market, through the Knox City Council Portfolio Auction to be held by Fitzroys.

Fitzroys’ Shane Mills and Lewis Waddell are managing the campaign that will see 10 Tamara Street, Wantirna South; 4 Coorie Avenue, Bayswater; 73-75 Eildon Parade, Rowville offered for sale. The Knox City Council Portfolio Auction will take place on Friday, 19 April at 11am at the Knox Community Arts Centre, 790 Mountain Highway, Bayswater.

Council has deemed the properties as surplus to requirements, with each to be offered with vacant possession. The services provided by the former childcare and family centres on the respective properties have in recent years all been relocated to nearby alternative sites.

Mills said each of the properties are zoned Neighbourhood Residential, allowing for a broad range of residential outcomes including low, medium and high-density housing at a time of very low housing stock amid surging population growth.

“Melbourne’s population is growing very quickly and there is a clear mismatch between demand and supply in the market at the moment,” he said.

“Melbourne locations that are highly accessible and located close to quality lifestyle and hospitality amenity are in particularly high demand at a time of flexible work arrangements.”

“The interest rate environment has stabilised and we expect more confidence from the development market over the course of 2024.”

Waddell said the existing facilities also present opportunities for owner-occupiers.

“These facilities have been utilised successfully for early learning and pre-school purposes in the past and provide an excellent base to be revitalised to full use.”

The 10 Tamara Street, Wantirna South property spans 2,883sqm with over 33m of frontage to Tamara Street and currently has 11 onsite car parks.

It is expected to sell for $3.4 million-plus.

The property is just moments from High St Road, in proximity to Knox Westfield with major tenants Coles, Woolworths, Aldi, Chemist Warehouse, Boost, Rebel Sport, Kmart and Telstra, and close to well-recognised education institutions including Wantirna South Early Learning Centre, Wantirna South Primary School and The Knox School, and located close to EastLink, providing easy access to Melbourne CBD and the Mornington Peninsula.

“Properties of this size with Neighbourhood Residential zoning and located to such great lifestyle and hospitality amenity, as well as education facilities, are very rarely offered to the market,” Waddell said.

The 4 Coorie Avenue, Bayswater property is on a valuable landholding of 1,137sqm with over 17m of frontage to Coorie Avenue.

“This is a particularly tightly-held precinct surrounded by multiple residential apartment townhouse developments,” Mills said.

The central neighbourhood location is surrounded by retail and lifestyle amenity with easy access to Mountain High Shopping Centre, which is anchored by major tenants Coles, Woolworths, Aldi, 7-Eleven, Vinnies and Anytime Fitness. It is also near educational institutions including Bayswater Childcare and Kinder, Bayswater Primary School and Fairhills High School.

Excellent public transport services are available with Bayswater train station within walking distance and bus services metres away on Scoresby Road.

Expectations are of $1.3 million-plus.

“Knox City Council’s population is forecast to increase by around 18% by 2046, with Wantirna South and Bayswater to lead the growth,” Waddell said.

Around $1.4 million-plus is expected for the 1,276sqm site at 73-75 Eildon Parade, Rowville, which has a huge corner frontage to Eildon Parade and Metcalf Crescent, and adjoins leafy Eildon Park.

The site is positioned in a tightly held precinct just minutes from the EastLink freeway, and is in proximity to Stud Park Shopping Centre with major tenants Coles, Woolworths, Kmart, ANZ and Westpac.

Close-by well-recognised education institutions include Parkridge Primary School, Aurora Early Education Rowville and Rowville Secondary College.

“This site offers the best of so many worlds - leafy Eildon Park is an immediate neighbour and offers excellent recreation opportunities, Stud Park Shopping Centre is nearby, and EastLink’s close proximity means the Melbourne CBD and the Mornington Peninsula are within easy access,” Mills said.

Latest Prime Toorak Road offering Set for April Auction
Melbourne’s prime shopping strip market is set for its next test in 2024, with a corner property in the “Paris end” of Toorak Road, South Yarra going to auction in April.

Fitzroys’ Lewis Waddell, Ben Liu and David Bourke are marketing 17 Toorak Road on behalf of a private owner, with the auction set for Friday, 12th April at 2pm. Price expectations are of circa $2 million.

The property comprises a single-level building that is fully serviced for food and beverage use with a commercial kitchen, occupied by La Parisienne Café and Charcuterie on a lease extending to April 2029.

It is positioned in a prime South Yarra location within an established hospitality precinct, just a few doors down from Melbourne icon France Soir, and close to notable eateries including Bar Carolina, Tetto, Cosi, and many more.

The 150sqm corner site offers side and rear access via a laneway zoned Activity Centre - Schedule 1, offering value-add and development opportunities.

“Investors and land bankers have the very rare opportunity to secure a dual-fronted prime Toorak Road site with favourable Activity Centre zoning, and explore their options for future use of a site in one of Melbourne’s most established and affluent catchments, while enjoying a solid income stream from a quality tenant,” Waddell said.

The offering comes to market on the back of Fitzroys selling more than $16 million worth of prime shopping strip retail assets on Toorak Road in just a few months. The most recent was the $5.15 million sale of 91-93 Toorak Road, South Yarra, on a very sharp passing net yield of 1.8%. The 415sqm building is occupied by a La Porchetta restaurant and an optometrist.

“Prime assets in Melbourne’s shopping strips offer excellent investment credentials. Strips are experiencing a real period of renewal now. Vacancies are at a long-term low as Melburnians spend more time than ever at their local villages, supporting trade, while developments on and around the strips are underpinning future trade prospects,” Waddell said.

“The property is located close to the Botanical gardens and Domain Hill residential enclave and is also well positioned to the South Yarra train station and is surrounded by many key developments that will continue to make South Yarra more dynamic. These include the ongoing development of the nearby Forrest Hill precinct, as well as Oreana’s $250 million redevelopment of South Yarra Square, V-Leader’s $90 million Hotel Claremont project and the $1.5 billion overhaul of the Jam Factory “ Liu Said.

According to Fitzroys’ latest Walk the Strip report, Toorak Road, South Yarra vacancies have nearly halved since 2021, from 10.1% down to 5.6% in 2023.

Green Light for $1.7b Overhaul of Queen Victoria Market Precinct
The Victorian Government has approved the $1.7 billion redevelopment of the southern portion of the Queen Victoria Market precinct, which will deliver build-to-rent and affordable housing, an office tower, student accommodation and a new public park.

The 3.2ha site, bordered by Franklin, Queen and Peel streets, will be known as Gurrowa Place and is a partnership between developer Lendlease and the City of Melbourne, with involvement from student accommodation provider Scape.

Lendlease will deliver 560-unit build-to-rent apartments, with 80 affordable units, as well as a 28-level office tower, and the 1.8ha public park, while Scape will build a student accommodation component with 1,100 beds.

The project will also see the existing heritage Franklin Street Stores turned into a new retail village, the creation of a civic pavilion, and a 220-space basement car park built underneath the site for Market traders and visitors.

The Market precinct has recently seen the completion of another build-to-rent tower, by Mirvac, with 490 units on what is known as the Munro site, as well as a boutique apartment hotel by Veriu Hotels.

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.