Weekly Wrap

Fitzroys Weekly Wrap - 2nd March 2018

Posted on 02nd March 2018


Retail sale, 60 Bridge Street Mall, Ballarat The 180sqm Vinnies premises sold under the hammer for $945,000 after 54 bids, with a tight 5.29% yield. It has a renewed 3+3-year lease to the longstanding tenant, and is opposite a major public car park. 

Retail sale, Killians Walk, Bendigo A Melbourne-based buyer paid $1.050 million for the 250sqm outlet of local icon Stearns Showcase Jewellers. The property sold prior to auction after more than 80 enquiries from local and interstate buyers, with a new 5+5-year lease to the established tenant returning $100,000pa. 

Retail sale, 35 Temple Drive, Thomastown The 980sqm industrial unit is on a 1,592.4sqm site with 12 car spaces and sold for $1.175 million, at a yield of around 5%, with a lease until October 2020 and a five-year option. 

Retail sale, 1660 Centre Road, Springvale The Repco outlet on an 876sqm corner site sold at auction for $1.57 million, with a lease until August 2020 to the auto retailer returning $88,882pa. 

Retail lease, 1500 Pascoe Vale Road, Roxburgh Park Burger Edge has leased the remaining space of 135sqm within Pelligra Group and Citinova’s Coolaroo commercial precinct at a commencing rent of $100,000pa.

Office lease, Level 1, 2A Bridge Road, Richmond 
Melbourne Hand Rehab signed a five-year lease with a five-year option at $49,000pa, relocating from nearby Lennox Street after 10 years as they require more space. It will be their ninth location. 

Office lease, 818 Glenferrie Road, Hawthorn 
Jewellery retailer Lovisa is moving its head office to the 1,600 sqm space on a five-year deal. 

Office lease, 1100 Pascoe Vale Road, Broadmeadows 
Victorian Aboriginal Legal Services leased the 260sqm level two space for two years with a three-year option, at $86,700pa gross. 

Office lease, 664 Collins Street, Melbourne 
Energy company AGL has signed on for more than 6,000sqm within the A-grade office development, taking it to full occupancy.

Land/development sale, 388-392 Kororoit Creek Road, Williamstown 
A developer paid $4.35 million for the corner property of 3,420sqm over three titles, with a short-term lease to Middendorp Electric over a 420sqm warehouse, an empty 850sqm warehouse, and a vacant site.

Industrial sale, 31-37 Russell Street, Abbotsford 
The Commercial 2-zoned warehouse sold to a developer for $2.425 million on a 4.09% yield in an off-market deal, with a lease to Damm Fine Food. 

Industrial lease, 28-50 Cyanamid Street, Laverton North 
Crystal Interior Concepts has signed a five-year lease over the 4,116sqm building at $308,000pa

Talking Points:

Once-in-a-lifetime opportunity spurs Fitzroy Street revitalisation: A prime Fitzroy Street freehold covering two separate titles and formerly home to the Sapore restaurant is being offered for sale for the first time in 60 years.

It is the latest piece of the revitalisation puzzle for the popular St Kilda retail and lifestyle precinct. The Novotel hotel site has hit the market with approval for a seven-level, 236-apartment development, and the redevelopment of the Gatwick Hotel and construction of the $38 million Victorian Pride Centre are underway.

Fitzroys Agency Director Mark Talbot and Associate James Lockwood are marketing 3-5 Fitzroy Street via Expressions of Interest closing 15 March at 4pm.

The vacant beachfront property includes adjoining two-storey Victorian buildings with a combined floor area of 307.8sqm on a 262sqm site. It is positioned at the gateway to the iconic Fitzroy Street precinct, at the intersection of Upper Esplanade and opposite Catani Gardens and St Kilda Yacht Club. It is being offered with existing on-premises liquor and restaurant licenses.

Talbot said the property offers outstanding value-add potential suitable for investment, development or owner occupation, and the chance for a purchaser to play a key part in the evolution of the historic precinct.

“The area has been a popular destination for Melburnians over the past century, and has now developed into one of Melbourne's leading lifestyle and entertainment precincts hosting notable restaurants and venues,” he said.

The Prince of Wales Hotel, Circa, The George Hotel, Café Di Stasio, the Esplanade Hotel, the Palais Theatre, Donovans and Luna Park are among key venues in the area.

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.