Weekly Wrap

Fitzroys Weekly Wrap - 5th July 2024

Posted on 05th July 2024

910 Thompsons Road, Cranbourne West
A private investor with long-term land banking intentions paid $16.3 million for the 19,862sqm Westernport Service Centre site, on a 5.44% yield. It is occupied by BP, Carl’s Jr., and Souvlaki GR and has a weighted average lease expiry (WALE) of 8.1 years.

60 Church Street, Brighton

An investor paid $4.71 million for the 130sqm building, occupied by menswear retailer Gazman, which is on a 230sqm site. Gazman has a 5-year lease with no options running to 2027.

5/50 Church Street, Brighton

The 160sqm property, leased to Bendigo Bank on a 3-year term to 2026, sold for $4.15 million.

12 Young Street, Frankston

The vacant 320sqm building adjacent to Frankston train station sold for $570,000.

38-40 High Street, Wodonga
A NSW-based private investor paid $6.4 million for the 2-level 3,811sqm building, which is on a 2,811sqm site. Anchored by the Victorian Government’s Department of Education, the property returns $595,486pa.

36 Cobden Street, North Melbourne

The 2-level 157sqm building sold for $902,000.

19 & 20/47-51 Little Boundary Road, Laverton North

The 3-level 500sqm building with 22 on-title car parks was leased at $90,000pa, or $180/sqm.

8-12 Lionel Road, Mount Waverley
A local owner-occupier paid more than $17 million for the 11,776sqm Special Use 6-zoned site, which has multiple warehouses and is near the Monash University precinct.

13 Metropolitan Avenue, Nunawading

A local owner-occupier bought the vacant 440sqm office and warehouse with 4 on-site parking spaces for $2.61 million.

6/13 Molan Street, Ringwood

The vacant 142sqm office and warehouse unit sold for $505,000.

36 Hume Road, Laverton North

The 106sqm Lot 48, Unit 12B industrial unit was leased at $24,000pa, while the 117sqm Unit 16D was leased at $27,000pa.

1078 Main Road, Eltham

The 500sqm building on a 1,900sqm site, occupied by Nillumbik Medical Centre, sold to an investor for more than $5 million.

Gurner and Qualitas Take Control of The Jam Factory, with $2.75b Development Plans
Developer Tim Gurner and financier Qualitas have bought out their co-owner of The Jam Factory, Newmark Capital, and will soon put forward revised development plans for the Chapel Street precinct with an end value of $2.75 billion.

Gurner and Qualitas bought out Newmark Capital’s 65% share for around $125 million, having taken a 35% stake in the project 3 years ago for about $75 million.

Their revised plans for the 2ha precinct include a new Village Cinemas complex and 20,000sqm of retail space, 15,000sqm of commercial offices, 4 residential towers – apartments will range from $750,000 to $30 million – and 2 hotels.

They will retain more of the heritage façade than previous proposals, and the original Jam Factory’s chimney, which will have a 1,800sqm piazza featuring cafés, bars and restaurants built around.

Development will be carried in independent stages. Stage 1 will comprise 250 luxury apartments and a retail component, with an end value of about $350 million. Construction is aimed to begin at the start of 2025.

Fitzroys Associate – Agency, Lewis Waddell said The Jam Factory redevelopment is expected to drive more pedestrian traffic through The Jam Factory and the famous Chapel Street shopping and dining strip.

“Melbourne’s shopping strips are experiencing a real period of renewal at the moment, with vacancies at a long-term low, and Chapel Street, South Yarra is one of the best examples.

According to Fitzroys’ Walk the Strip report series, vacancies in the South Yarra section of Chapel Street have come down to 7.9%.

“Chapel Street has been the beneficiary of key developments in recent years, including Greystar’s $500 million dual-tower build-to-rent project, the Capitol Grand tower, and Ovolo Hotel, and the ongoing high-density renewal of the Forrest Hill precinct. These have brought more people to the strip at all hours, boosting trade,” Waddell said.

“The suburb’s development pipeline also includes Oreana’s $250 million office and hotel redevelopment of South Yarra Square, and V-Leader’s $90 million Hotel Claremont project,” he said.

The Jam Factory was originally built in 1858 as a brewery. It was home to the Victorian Preserving Company from 1876 to 1895, when it changed hands and became the OK Jam Co. Jam production continued into the middle of the 20th century, before it became a retail and entertainment centre at the end of the 1970s.

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.