Weekly Wrap

Fitzroys Weekly Wrap - 23rd February 2018

Posted on 23rd February 2018

Retail sale, 76A The Terrace, Ocean Grove
Positioned in the heart of the rapidly developing Bellarine Peninsula town of Ocean Grove, the property sold under the hammer for $2.465 million on a tight yield. The 327sqm single-level building is leased for 3 x 4 x 4 years to long-term tenant Pharmasave and is returning $107,000 pa.

Retail sale, 157 Lygon Street, Brunswick East
The 244sqm site has a 160sqm building leased to long-term tenant Green Grocer Smith & Maloney. It sold for $1.61 million at a 2.7% yield, returning $45,000pa and leased until July 2020 with no further options.

Retail/hospitality lease, Shop 3, 188 Little Collins Street, Melbourne
The 38sqm space was leased to café Little Temperance on a 5+5-year deal at $90,000pa net, with 4% annual increases. The strong rent followed huge demand from more than 60 operators, including hospitality, fashion and service retail traders.

Retail sale, 137 Bourke Street, Melbourne
An offshore Asian investor paid a combined $7.65 million for the ground and basement levels of Vic Investments Management Group’s 19-level Metropolitan development at 137 Bourke Street. The 142sqm ground floor sold for $5.65 million on a 3.87% yield, and is leased to property group Jinding Australia on a new seven-year deal with options, while the 168sqm basement sold for $2 million at sub-5% with a new six-year lease with options to restaurant Ishizuka.

Retail lease, 495 Collins Street, Melbourne
US clothing retailer Brooks Brothers is opening a second Melbourne store in the 100sqm ground-floor space within the InterContinental Hotel building, at a rate in the vicinity of $1,200/sqm.

Retail lease, 108 Main Street, Mornington
A skincare specialist signed a 3x3x3-year lease at $81,000pa for the 82sqm shop.

Retail/hospitality lease, 223 High Street, Prahran
Hanoi Hannah will be open another eatery in Melbourne’s inner south, expected in July, after signing a seven-year deal within the Peregrine Projects development at $130,000pa plus GST.

Retail/hospitality lease, 88 Beaconsfield Parade, Albert Park
High-end food and beverage operator Beacon 88 will open up at the 160sqm ground floor space of the residential complex after signing a five-year deal at $95,000pa net, or about $593/sqm.

Hospitality sale, Montague Hotel, 355 Park Street, South Melbourne
The two-level Hotel is on a corner site and sold for $3.3 million in an off-market deal, with an 18-year lease to Bon Vivant Group. 

Industrial sale, 19-21 Bignell Road, Moorabbin
A local investor paid $2.3 million for the 1,330sqm facility in an off-market deal, reflecting a 3.65% yield. Five parties showed interest for the 1,732sqm site. It sold with a three-year lease returning $84,000pa net.

Industrial lease, 1 Vickers Street, Reservoir
Board games storage and distribution group Meeple Distributor Pty Ltd has signed a 3x3x3-year deal over the 495 sqm warehouse building, which includes an 83sqm office and five on-site parking spaces.

Office sale, Level 15, 410 Docklands Drive, Docklands
An owner occupier picked up the 234sqm corner strata office for $1.85 million in an off-market deal. It includes 12 on-site car spaces and two storage rooms. Sold at a floor rate of $7,906/sqm.

Office lease, 253 Richardson Street, Middle Park
The 41sqm boutique office was leased to a cosmetics label at $475/sqm on a three-year deal.

Talking points

Landmark opportunity beckons at Werribee’s Bridge Hotel: Hospitality operators have an historic opportunity to create a landmark venue for the booming Wyndham region, with a long-term lease available for the heritage Bridge Hotel building in Werribee.

The two-storey Art Deco heritage building was built in 1926 and comprises five main ground-floor bar and function areas across 602 sqm and ten first-floor rooms over 186 sqm. A 40 year-lease of two 20-year terms is available.

The building has local significance as one of Werribee’s major hotels, and is on a landmark township site formerly home to the bluestone Camp Hotel, built in 1878.

Rick Berry and Stuart Kennett of Fitzroys are handling the Expressions of Interest campaign, closing on Wednesday, 21 March, on behalf of Wyndham City Council.

Kennett said the Council has determined that a hospitality, food and beverage use is preferred for the Bridge Hotel and is seeking an experienced operator that can provide a contemporary hospitality use, including café, restaurant, hotel, microbrewery, function centre or a combination of these, as well as a live music venue.

He said the Bridge Hotel is seen as a major asset of Wyndham City and is suited to a hospitality experience that capitalises on the Watton Street location, and engages with the heritage aspects of the property.

“We are looking to create an experience and offering that locals are proud to frequent and also gains a reputation as an authentic, quality destination for people from neighbouring communities.

“The Bridge Hotel provides a rare opportunity for the tenant to have significant input and control in the building’s refurbishment and make their mark through an iconic venue in this booming region.”

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.