Weekly Wrap

Fitzroys Weekly Wrap - 24th May 2024

Posted on 24th May 2024

205-207 Lygon Street, Carlton
Allan Myers paid $11.42 million for the 639sqm double-story Victorian building, occupied by an ANZ branch, and which is on a 477sqm site.

387-391 Bourke Street, Melbourne

The 484sqm former home of the McEwans CBD hardware shop, on a 345sqm site close to Bourke Street Mall, sold for $8.5 million.

85 & 85A Wilson Street, Horsham

An investor paid $1.9 million on a 6.51% yield for the 1,230sqm building, which is on a 1,358sqm site and has a new 10-year lease to Pets Domain with options to 2044, returning $123,749pa plus GST.

93 Argyle Street, Traralgon

The 531sqm building on a 980sqm site, leased to electronic retailer Jaycar, sold for $1.32 million on a 5.84% yield. Jaycar has a 7-year lease to 2029, returning $77,042pa, with 5+5-year options.

98 Puckle Street, Moonee Ponds

The 105sqm building sold to an investor for $1.45 million. It has a renewed 3-year lease with options to 2034 to OS Barber Boss returning $76,491pa plus GST.

274 Thomas Street, Dandenong
A local investor bought the fully-leased 791sqm building for $3.8 million, on a 6.05% yield. It is occupied by 4 tenants, including Shine Lawyers.

190 Gladstone Street, South Melbourne

The 80sqm building on a 128sqm site sold for $864,000.

13-17 Jessica Way, Truganina
Civil construction and transport and logistics training provider Foresite Group Pty Ltd paid $10 million for the 11,900sqm site, which has a 1,275sqm warehouse and 780sqm office. It is leased to Scully RSV on a lease until 28 November this year with 3+3-year options.

395 Flemington Road, North Melbourne

The office, showroom and warehouse building sold for $1.25 million, on a 5.2% yield. It is occupied by Wood Steel & Stone on a 3+3+3-year lease from October 2022, currently returning $65,000pa net plus outgoings and GST.

11/11 Rockfield Way, Ravenhall

The 468sqm office and warehouse was leased at $55,000pa.

14/82 Gateway Boulevard, Epping

The 240sqm office and warehouse was leased at $36,000pa.

12 O’Sullivan Street, Pakenham
A private developer paid $2,800,500 plus GST for the 3,734sqm commercial land parcel.

2 Pink Hill Boulevard, Beaconsfield
The childcare centre property sold for $8 million, with a 15-year lease to 2036 with 3 further 10-year options, returning $411,848 plus outgoings and GST.

7 & 9 Natimuk Road, Horsham

The 100-place childcare centre was leased at $380,000pa, on a 15-year term plus options.

The Brunswick Street, Fitzroy birthplace of international tea brand T2 is up for sale, offering the chance to acquire a true piece of Melbourne’s retail history.

Fitzroys’ Chris Kombi, Ervin Niyaz and Ben Liu 刘犇 are marketing 340 Brunswick Street, Fitzroy as well as the next door Blackout Restaurant and Lounge at 342 Brunswick Street, Fitzroy. The properties will be offered via back-to-back auctions on Thursday, 13 June at 1pm on site.

The properties have been held within the same families since 1976.

Occupied by T2 since 1996, 340 Brunswick Street comprises a beautifully-presented 260sqm two-storey building, returning $82,396 per annum, with a frontage of 6.64 metres.

342 Brunswick Street is leased to the highly popular Blackout Restaurant and Lounge and returns $98,384 per annum. The property comprises a fully-activated 330sqm two-storey building with a generous frontage of 8.68 metres.

These classic buildings are on a strategic combined landholding of 363sqm in a highly sought-after position in the centre of the famous Brunswick Street, Fitzroy hospitality, entertainment and lifestyle precinct.

“This is an opportunity to acquire a true piece of Melbourne’s retail history,” Kombi said.

“This is the birthplace of a brand that as grown to become an iconic and beloved part of Melbourne and Australia’s retail scene.”

T2 was founded in 1996, opening the first store at 340 Brunswick Street. The company steadily expanded through Melbourne and Sydney in the following years, and had become a truly national company with 40 stores by 2013, the year it was acquired by multinational company Unilever in a circa-$60 million deal.

Midway through 2020, Unilever separated T2 into tea-focused entity Ekaterra - comprising over 30 brands including tea giant Lipton - which was purchased in late 2021 by global private equity firm CVC Capital Partners for $7 billion. T2 now has over 70 stores worldwide.

Next door on Brunswick Street, Blackout Restaurant & Lounge has become a highly acclaimed bar and wood-fired pizza and Middle Eastern cuisine restaurant, and a popular part of Brunswick Street’s nightlife scene.

Niyaz said, “The properties represent a generational opportunity to acquire a prime Brunswick Street investment, located in the absolute heart of one of Melbourne's most vibrant hospitality and lifestyle strips”.

“The properties offer strong cashflow from quality tenants, with great rental uplift and value-add prospects in the coming years. There’s consistently strong competition between tenants for space along he prime trading section Brunswick Street.”

Vacancies on Melbourne’s archetypal inner north hospitality and lifestyle strip are at their lowest in years as Melburnians again embraced shopping, dining and eating out. According to Fitzroys’ most recent Walk The Strip report, vacancies on Brunswick Street, Fitzroy now sit at just 4.6%.

“Prime assets in Melbourne’s iconic shopping strips are offering excellent investment credentials,” Niyaz said.

“The strips are currently experiencing a real period of renewal.”

He said Yarra Council has promoted significant development throughout Fitzroy and Collingwood in recent years, demonstrated by the number of major projects in different stages of planning, construction and completion.

“More people want to live, work and play in highly accessible areas with quality lifestyle attributes, and the major influx of residential and commercial development throughout the area has resulted in a huge population boom that’s further underpinned the viability of Brunswick Street.”

Liu said Brunswick Street is well-serviced by public transport, with tram services operating along Brunswick Street itself and bus services along Johnson Street and Victoria Parade, while Victoria Parade and other major arterial roads Punt Road and Hoddle Street, Alexandra Parade and the Eastern Freeway are all close by and easily accessible.

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.