Weekly Wrap

Fitzroys Weekly Wrap - 12th April 2024

Posted on 12th April 2024

147 Lonsdale Street, Dandenong
An owner-occupier bought the 720sqm open-plan showroom on a 1,309sqm site for $3.18 million. Drummond Golf occupies the premises on a short-term lease.

796 Glenferrie Road, Hawthorn
The 2-level 267sqm shop and 3-bedroom residence on a 167sqm site sold for $2.5 million. It returns $124,316pa and is leased on the ground floor to clothing retailer Fayt.

330 Racecourse Road, Flemington
An investor bought the 220sqm building, home to Tiger Bread Bakery & Café, for $1.07 million, on a 6.2% yield.

164 Weatherall Road, Cheltenham
The vacant 73sqm building on a 214sqm site sold for $675,000.

359-363 Mitcham Road, Mitcham
A local value-add investor paid $1.55 million for the 290sqm office building, which is on a 377sqm Commercial 1-zoned site at the corner of Brunswick Road and opposite Mitcham train station.

14/1 Sigma Drive, Croydon South
The 146sqm office suite sold for $680,000.

368 Sydney Road, Coburg
The 69sqm office was leased at $56,000pa.

37-41 Grosvenor Street, Abbotsford
A Malaysian group acquired the three adjoining warehouses on a combined 1,246sqm site zoned Industrial 1 for $5.488 million. The property is improved by 985sqm of buildings and has 16 on-site car spaces.

11/126-128 Merrindale Drive, Kilsyth
The 469sqm commercial kitchen investment sold for $1,157,500, on a 6% yield.

31/180 Fairbairn Road, Sunshine West
The 200sqm office warehouse unit changed hands for $590,000.

29 Concorde Drive, Keilor Park
The 1,708sqm office and warehouse facility on a 2,183sqm site was leased at $290,000pa.

K3/63-85 Turner Street, Port Melbourne
Located within the Port.IT Business Park, the 298sqm office and warehouse with 4 on-site car spaces was leased at $62,000pa.

5/16-17 Hammer Court, Hoppers Crossing
The 304sqm office and warehouse was leased at $40,000pa.

288-296 Johnston Street, Abbotsford
Raman Shaqiri’s SQ Abbotsford bought the 1,214sqm Commercial 1-zoned site at the corner of Lulie Street for $13 million, with plans lodged for a 14-storey residential project. The site is home to the old Tarantos Shoe outlet and a double-storey Victorian era building.

442-452 North Road, Ormond
The 1,651sqm corner site currently home to Beis Efraim College sold for $8.625 million, on a 5.5% yield. It has a 2-level 1,559sqm building with 8 years remaining on an 18-year lease, currently returning $482,051pa. A demolition clause with 12 months’ notice can be activated from 2031.

1192-1196 Nepean Highway, Mount Eliza
A local Mornington Peninsula landbanker bought the 6,291sqm site occupied by Grey Foxx Venues reception centre for $2.25 million.

Huge Competition Generated for Childcare Centre Located in Major Shopping Strip
Melbourne’s childcare centre market is off to a strong start in 2024, with a rare centre located within one of the city’s iconic shopping strips selling for more than $6.7 million after a sale campaign that generated a huge response from local and offshore investors.

Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu managed the Expressions of Interest campaign for 263-265 Centre Road, Bentleigh, which was offered to the market for the first time in 25 years. The sale price of $6,706,800 came in well above expectations and reflected a tight 4.7% yield.

More than 100 enquiries were generated during the campaign and 11 formal Expressions of Interest submitted.

The 93-place childcare facility has a 10-year lease with options to Evolve Early Learning from 2019. Evolve Early Learning trades from the site as Roseberry House and is owned by New Zealand publicly-listed Evolve Education Group, which has a market capitalisation of over $100 million.

The facility is on Commercial 1-zoned landholding of 1,545sqm with a street frontage of 33.8 metres.

“Childcare centres within popular shopping strips are rare and investors and landbankers responded accordingly,” Kombi said.

“Using our database and networks we were able to source strong interest from local and offshore capital sources, and create competitive tension in the Expressions of Interest process that led to a very strong result.”

He said the campaign represented over $600 million of unsatisfied capital.

The purchaser was a local investor and the underbidders included domestic and overseas parties.

“Investors continue to pursue Australian commercial real estate opportunities leased to essential services. Federal government subsidies have made childcare more accessible to more parents and underpinned demand, ensuring security of tenancy,” Kombi said.

“This represented an excellent set-and-forget investment.”

“Investors were also attracted to the land-rich nature of the property, which presented as a rare chance to secure a large Commercial 1-zoned site within a high-performing shopping strip.”

Centre Road is home to three full-line supermarkets in Coles, Woolworths, Aldi, all major banks and a host of recognised national and local traders. According to Fitzroys’ Walk the Strip report, Centre Road has a low vacancy rate of 5.2%.

Two Freeholds in Premium Precinct Offer Rare Landholding Opportunity
Two adjoining Essendon freeholds have been put to the market, offering a rare opportunity to acquire a substantial landholding in a popular lifestyle strip opposite a busy train station and bus interchange.

Fitzroys’ Ervin Niyaz and Chris Kombi are marketing 53 & 55-57 Rose Street, Essendon, available individually or together, via Expressions of Interest closing Tuesday, 23 April at 3pm.

Expectations are of $3.5 million-plus combined.

The properties comprise 53 Rose Street, a double-storey 196sqm building on 220sqm of land with three car parks, and 55-57 Rose Street, a 184sqm single-storey double-fronted retail shop on 366sqm with six car parks.

The strategic combined landholding of 586sqm boasts favourable Commercial 1 zoning, offering outstanding untapped future potential (STCA), rear access via ROW extending to Flower Street and positioned in a core location within the thriving Rose Street retail and lifestyle centre and immediately opposite Essendon train station, bus interchange and public parking.

The property is also close to highly-regarded schools and amenity that bolster foot traffic and retail activity along Rose Street.

Niyaz said the rarely offered inner-city opportunity is just eight kilometres to the Melbourne CBD, and suitable to occupiers, developers, investors and land bankers.

“This is a rare opportunity to acquire a substantial landholding opposite a busy train station and bus interchange, in a popular lifestyle strip within a tightly-held, affluent neighbourhood location,” he said.

“There’s been a precedent set in the area for development activity of up to 10 levels, with a number of multi-storey projects in the immediate surrounds,” Niyaz said.
Completed developments nearby include LINC (94 apartments), Tekna (30 apartments), Luminess (61 apartments), Buckley & Co (35 apartments) and Rose (19 apartments). These projects range between five to 10 levels.

“Melbourne is currently experiencing a shortage of residential stock as more people are looking to move into highly-accessible accommodation which is close to transport, retail and lifestyle amenity at a time of flexible working arrangements,” Niyaz said.

“There is evidently demand for product in this area.”

Kombi said the properties have excellent connectivity to major roadways including Mount Alexander Road and Buckley Street, in addition to Tullamarine Freeway, providing convenient access to Melbourne CBD, Melbourne Airport and other key destinations.

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.