Weekly Wrap

Fitzroys Weekly Wrap - 3rd April 2020

Posted on 03rd April 2020

000 Retail 05

247-263 Greens Road, Dandenong
The new strata-titled service station sold off-the-plan for $8 million at a 5.35% yield, with a 15-year lease to United Petroleum returning $450,000pa. Pomeroy Pacific and McLaren Developments were the vendors.

803 Point Nepean Road, Rosebud
The brand new service station on a 1,274sqm site sold for $7.6 million. Zoned Commercial 1, the triple-fronted site has a 15-year lease to Liberty until December 2034 plus options to 2054, returning $420,000pa net plus GST.

521 Middleborough Road, Box Hill
A Melbourne-based investor bought the vacant 100sqm building, on a 214sqm site, for $860,000.

93 Loughnan Road, Ringwood
An investor bought the 180sqm shop and dwelling, home to a milk bar, for $525,000 at a 4.4% yield.

144 Junction Road, Nunawading
The 60sqm corner shop sold for $525,000, at a 3.9% yield, with a lease to café Toast.

50 Jackson Court, Doncaster East
A café operator leased the 100sqm former Bakers Delight space for 3 years at $56,000pa.

769C Glenferrie Road, Hawthorn
Another café leased the 81qm shop for 3 years at $52,500pa.

000 Offices 05

362 Wellington Road, Mulgrave
A local business owner bought the vacant 3,775sqm, 2-level building for $9.1 million. The building was refurbished in 2017 and is on an 8,719sqm site zoned Special Use 6, with 198 parking spaces on title.

Suite 405, 198 Harbour Esplanade, Docklands
The 92sqm strata suite changed hands for $540,000.

Suite 8.01, 2 Queen Street, Melbourne
A local owner occupier bought the 49sqm strata office for $430,000.

990 Whitehorse Road, Box Hill
Eastern Healthcare Network leased 996sqm on part of level 4 the former Australian Taxation Office building for 6 years at $418,000pa gross. Glorious Sun owns the property.

313 Burwood Road, Hawthorn
Accountants and financial advisers HID Group is moving from Carlton after leasing 300sqm of fitted space on level 3 for 5 years at $114,000pa net plus GST

192 Burwood Road, Hawthorn
Separate businesses, Pop & Co and Avrus Solutions, combined their requirements and together leased the 162sqm space for 4 years at $350/sqm.

000Industrial 05

132-134 Dover Street, Cremorne
An owner occupier with long-term development plans bought the 473sqm warehouse for $5.35 million.

1-7 Ausco Place, Dandenong South
The vacant 1,596sqm warehouse on a 3,016sqm site sold for $2.3 million.

273 Boundary Road, Mordialloc
2 office and warehouse buildings with 3 tenants of a combined 1,300sqm and on a 2,229sqm site sold for $2.21 million, at a 6.4% yield.

3/38-42 White Street, South Melbourne
The 548sqm office and warehouse building leased to footwear retailer Edward Meller sold for $1.52 million, at a 6.1% yield.

159 Para Road, Greensborough
A local developer bought the vacant 969sqm site, zoned Industrial 3 and with a 239sqm building, for $1.115 million.

13 Wren Road, Moorabbin
The 585sqm warehouse on a 1,076sqm site zoned Industrial 1 sold for $1.045 million to a high-end fashion executive, who plans to occupy part of the building and lease out the remainder.

2 McLellan Drive, Kensington
A local investor paid $795,000 at a 4.6% yield for the warehouse, which is within a gated industrial complex on the former Simplot site.

000 Development 05

72 Ascot Vale Road, Flemington
The 5,372 sqm corner site sold for $10.875 million with approval for 125 units across 2 buildings of 6 and 4 floors each, with a combined area of 8,696sqm.

000 Specialised 05

340-344 Springvale Road, Springvale
Japara also sold the Japara Springvale aged care facility site for $13.38 million in a sale and leaseback deal with YWC Pty Ltd at a 5.6% yield, and took a 6+4+4+4-year lease.

2265 Point Nepean Road, Rye
The 121sqm premises of Rye Dental Care clinic on sold for $1.11 million. Bupa Healthcare has a 5-year lease until 2022 with options to 2032, returning $59,184pa plus GST. The clinic has operated from the site for more than 40 years.

000 Talking Points 05

Riverdale Village Town Centre Defies Challenging Environment
Riverdale Village Town Centre has defied the challenging environment in becoming one of the only Shopping Centres in Australia to open amid the COVID-19 outbreak, bringing much-needed facilities to one of Melbourne’s newest and high-growth communities.

The Town Centre, on the corner of Davis Road and Hummingbird Boulevard in Tarneit, is part of the Riverdale Village master planned community developed by YourLand and APD Projects.

Fitzroys Shopping Centre Manager, Simone Talarico watched the centre come to life, right through from the construction process to last Wednesday’s opening.

“It is fantastic for the local community to have brand-new shopping facilities operational and new job opportunities given the unprecedented retail and economic environment,” Talarico said.

“In the long-term Riverdale Village Town Centre will be a convenient and comprehensive focal point of lifestyle and shopping.”

The Centre is anchored by a full-line Coles supermarket and consists a total area of 7,295sqm. Stores trading on opening day included Coles and Liquorland, Kangaroo Mobile Zone, One Stop Salon, Beauty Genesis, NewsXpress & Lotto, and halal Riverdale Quality Meats and Produce, which has external entry and has been trading since December. Anytime Fitness, located on level two of the centre, with its own external entry, has also been trading up until the coronavirus restrictions were put in place.

Tenants currently still fitting out and are to open in due course include Blue Hippo Laundromat, Bottlemart, Direct Chemist Outlet, a Medical Centre, Rajwadi Indian Cuisine, Smokin’ Joe’s Pizza & Grill and Riverdale Charcoal Chicken, among others. “The local community now has access to a fully-stocked, brand-new Coles, and in the coming weeks, Direct Chemist Outlet and a Medical Centre that will be operated by GPs who have a comprehensive understanding of the region,” Talarico said. Talarico and the Fitzroys Asset Management team had to navigate a number of issues in a fast-evolving global situation that has impacted every industry to ensure the Centre’s safe and successful opening.

“Given the coronavirus situation is continuously evolving, a number of the specialty stores, mainly on the external perimeter, had openings delayed as a lot of the construction equipment comes from overseas,” Talarico said. “We opened on Wednesday, 25 March with Stage 1 restrictions in place, and by Thursday morning Stage 2 restrictions were in effect, so nail salon Beauty Genesis

were only able to open for one day, while Anytime Fitness have also had to temporarily close.” Talarico and her Fitzroys colleagues also had to ensure socially responsible practices were in place for the opening event.

“Together with anchor tenant Coles, we took a number of steps to mitigate risk in terms of numbers and ensure the 1.5-metre social distancing rule was followed,” she explained. “Barricades were set up to create a queuing system through to the front of Coles and barriers to the main automatic doors”.

“We had a structured entry system, whereby customers come into the Centre, collect a trolley at the start of the queue and then proceed to line up. By encouraging customers to take a trolley before entering the store, the trolley created a natural 1.5-metre distance between each customer.

“The Centre had additional security, as did Coles on the day, and we engaged with Wyndham Police who were only too happy to attend on the day to oversee the opening.” Talarico said customers were very complimentary on the Centre and its open, spacious design, as well as having a fully-stocked Coles during a period in which a number of kitchen and bathroom staples across the rest of Melbourne haven’t been immediately available.

“Almost every customer who entered Coles on the opening day left with toilet paper, handwash and sanitiser, rice and other products that have currently been hard to find elsewhere,” she said.

The opening of the Coles supermarket alone has created 149 new local jobs in the City of Wyndham, as well as opportunities for 40 team members transferring from other Coles stores across Melbourne, bringing the team total to 189. For almost 109 new recruits joining the team, this will be their first time entering the workforce.

Customers will find fan in-store bakery, gourmet delicatessen featuring a range of halal meat, a scoop and weigh bar, and an extensive fresh produce area with fruit and vegetables, some being sourced from local Werribee farmers.

According to population research house .id, Tarneit’s current population of around 40,000 is expected to grow to 92,000 by 2027.

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 2020 Fitzroys.