Weekly Wrap

Fitzroys Weekly Wrap - 9th February 2018

Posted on 09th February 2018

406N 20182X9246

Retail sale, 15 & 17 Linden Tree Way, Cranbourne North
Two strata titled shops have sold for a combined $1.425 million. Located within one of Australia’s strongest growth corridors, the shops of 70sqm and 90sqm were sold with long leases in place to food operators on sub 5% yields.

Retail sale, 11-17 Cohen Place, Melbourne
Punt Hill Apartment’s 270sqm ground floor restaurant Teahouse At Chinatown sold for $3.106 million, at a rate of around $11,500/sqm. The property sold on a net yield of circa 4.76%.

Retail sale, 733 Burwood Road, Hawthorn East
Zoned Commercial 1, the vacant 213sqm property has a 185sqm shop and sold prior to auction for $1.29 million, with a permit for six apartments and retail space. Sold on a land rate of $6,056.34/sqm.

Retail sale, 124 Chapel Street, Windsor
A Melbourne-based investor paid $2.1 million for the two-level corner building, which is home to Windsor Bay & Bistro on a new five-year lease over the ground floor, and a two-bedroom apartment above. The sale price reflected a 4.9% yield.

Retail lease, 55-59 Main Street, Greensborough
Swimwear Galore is expanding into the former Commonwealth Bank premises of 560sqm, inking a five-year deal at $250,000pa net, at around $446.43/sqm.

Office sale, 25 Duke Street, Abbotsford
A developer acquired the vacant brand-new, 490sqm three-level building for $2.75 million, with plans to add another level. It is on a 401sqm site with 26 parking spaces.

Office lease, Part Level 1, 195 Glenferrie Road, Malvern
S&K Group signed a five-year deal at $53,000pa net plus GST for the 160sqm space situated on the corner of Glenferrie Road and Union Street with excellent natural light and secure on-site parking.

Office lease, 26 St Edmonds Road, Prahran
Having had its offices acquired for the Metro Rail project, Aesthetic is moving from the CBD to the 560sqm office and warehouse property. It will pay $350/sqm over five years.

Industrial sale, 28-44 Albert Street, Preston
The 1.35-hectare vacant Industrial 3-zoned site was purchased by Point Property Group for $8.6 million, with plans for a high-tech business park.

Industrial sale, 20-24 Bessemer Drive, Dandenong South
The 3,097sqm vacant office, showroom and warehouse building is on a 4,900sqm site zoned Industrial 3 with 52 parking spaces. It sold for $4.62 million, at a floor rate of $1,491.77/sqm.

Industrial lease, 15 Katherine Drive, Ravenhall
A foreign distribution company that deals with building materials has leased the modern 986sqm building, which has a clear-span warehouse of 833sqm, at $78,000pa.

Talking Points

CUB on the hop: Carlton and United Breweries will move its offices across Southbank to Freshwater Place, after selling its current headquarters at 77 Southbank Boulevard to the Victorian State Government for $95.5 million. It has signed a decade-long deal for 6,500sqm over levels 20-23 at 2 Southbank Boulevard, slimming down from its 14,000sqm.

On the CBD’s western edge, food and confectionary major Mars is set to lease up to 5,000sqm of space within Tower One of the Walker Corporation’s $2.5 billion Collins Square development, according to the Financial Review. It would take the complex to within half a floor of office space of full occupancy, following a major pre-commitment by NBN for circa 20,000sqm last year, while Commonwealth Bank, KPMG, Transurban and the Australian Taxation Office are also tenants.

Closer to Southbank, another major office deal came with Chinese glass manufacturer Gingko Group’s $57 million purchase of the 10-level 606 St Kilda Road.

Moonee Ponds development surge heats up: The Metropolitan Fire Brigade has sold off two nearby sites in the inner north-western development hotspot for $10.5 million to a Chinese-backed developer. They included 1,608sqm the site of the three-level former Foxtel building at 579-591 Mt Alexander Road for $6.75 million, and the car park at 325 Ascot Vale Road for $3.75 million.

The nearby $2 billion Moonee Valley Racecourse development will add a further 2,000 dwellings and commercial space to the area, which is already host to a number of medium and high-density projects under construction.

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.