Weekly Wrap

Fitzroys Weekly Wrap - 17th May 2024

Posted on 17th May 2024

278 High Street, Shepparton
Boutique Sydney fund Blackfox Property paid $11.61 million for the 3,829sqm Shepparton Retail Hub, which includes an Officeworks, Bottle-O, Red Rooster and Club Lime Gym, and is on a 10,000sqm site.

221 Victoria Street, West Melbourne

The 2-level 160sqm building with ground floor retail/office and first floor residential sold for $1,183,600.

146 St Kilda Road, St Kilda

The vacant 365sqm corner building, formerly home to Christopher and Alexander’s Lighting, sold for $1.201 million.

2/7 Hollingsworth Drive, Cobblebank

The 124sqm property occupied by tuition business CS Education sold for $610,000. CS Education has a 7-year lease to December 2030 with options to 2040 returning $43,400pa plus GST.

1/61 High Street, Wallan

Vinnies leased the 416sqm retail space for a new op shop, signing a 6+6-year lease at $92,000pa plus outgoings and GST.

58 Gipps Street, Collingwood
An owner-occupier bought the vacant 155sqm property for $1.225 million.

138 Cromwell Street, Collingwood

An investor paid $2,727,272 for the 794sqm building, which is on a 375sqm site with 3 car parks, and was offered with a lease expiring in September 2025 with no further options.

Level 1, 138 Church Street, Brighton

A local owner-occupier bought the 45sqm strata office for around $355,000.

1-23 Banfield Court, Truganina
The 29,825sqm site, which has a 2,208sqm office and warehouse and 12,500sqm sealed concrete yard, sold for $20.4 million. It has a 3-year lease beginning from July 2023 with no options to Auswide Transport Solutions.

5/309 Boundary Road, Mordialloc

An investor bought the 155sqm warehouse for $465,000, on a 6.02% yield. Pakers International Trade Pty Ltd has a renewed 3-year lease returning $20,000pa.

Unit 12/248 Wickham Road, Moorabbin

Located within the Wickham development, the 149sqm office and warehouse was sold for $750,000.

138-140 Argus Street, Cheltenham

The 175sqm office, showroom and warehouse unit was leased at $39,000pa.

Lot 14D/36 Hume Road, Laverton North

The 117sqm industrial unit was leased at $27,000pa.

8 Mackie Road, Bentleigh East
The vacant 1,902sqm site, zoned Neighbourhood Residential, sold for around $3.6 million.

86 Springvale Road, Nunawading
An investor paid $12.8 million on a 5.3% yield for the childcare centre property, which is licenced for 154 places and occupied by Explorers Early Learning on a 15-year lease plus options.

322 Don Road, Badger Creek

A locally-based investor paid $5.2 million for the holiday park and land lease community Enclave at Healesville. Enclave comprises 44 permanent cabins and 27 short-stay or “tourism” cabins.

Sanremo Expands Into Global Coffee Hub Melbourne
International company Sanremo Coffee Machines is expanding, and has taken up space on the CBD fringe of global coffee hotspot Melbourne.

Fitzroys’ Shane Mills negotiated the lease for 77 Murphy Street in Richmond on behalf of a private local investor.

Mills negotiated the Sanremo deal at $386/sqm net.

Positioned on the corner of Murphy Street and Vaughan Street, the property comprises an open office, warehouse and storage room, and features high ceilings and roller door access to Vaughan Street.

“Sanremo Coffee Machines’ Australian head office is in Sydney and the company has appropriately chosen a city renowned globally for its expansive, top-tier coffee scene for its next phase of expansion,” Mills said.

Sanremo will use the space as a Melbourne warehouse, as well as showroom for its clients.

“Sanremo were particularly keen on this central location as many of its clients are in this pocket of Melbourne,” Mills said.

The international company manufactures its coffee machines in the historic Italian city of Treviso, located a 30-minute drive from Venice in the country’s north. Machines have been then transported to the company’s Sydney warehouse to prepare for bench testing by its technicians.

Mills said the leasing campaign also attracted showroom and service retail operators.

“The campaign generated multiple offers, reflecting the strong demand for city fringe assets with multiple access points, including roller door access and high ceilings,” Mills said.

Tenants Committing to Longer-Term Office Deals In Highly-Accessible Locations
Businesses are making more confident commitments to highly accessible office spaces as they navigate post-pandemic work arrangements, with circa 1,700sqm of office space in commercial hotspot Cremorne recently leased.

Fitzroys’ Stephen Land and Hamish Dennis leased the whole of Level 2, 105-115 Dover Street to award-winning building Mainbrace Constructions on a long 6-year term, before leasing Level 1 of the building to digital marketing agency Magic, also on a 6-year term.

The creative-style whole-floor offices of around 850sqm each, located within the former Slade Knitwear building, offer ample natural light with high ceilings and timber flooring.

Land said Mainbrace Constructions is relocating from Victoria Gardens in Abbotsford, and Magic from Prahran, both drawn to the more central and accessible location of Cremorne within close proximity to Richmond train station.

“The rare on-site car parking also proved to be highly desirable and was a key driver in enquiry from tenants looking for space in the area,” he added.

Dennis said the Cremorne office market continues to thrive due to a vibrant mix of lifestyle amenity on offer to its workers, along with nearby Swan Street retail strip which is home to one of Melbourne’s best hospitality and nightlife offerings, and is active day and night, 7 days a week.

“This spot is also within walking distance to Melbourne's famous sporting precinct which includes the MCG, AAMI Park, Melbourne Park and Olympic Park,” he said.

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.