Weekly Wrap

Fitzroys Weekly Wrap - 26th June 2020

Posted on 26th June 2020

000 Retail 05

3 Ballarat Street, Yarraville
The 2-level, 120sqm Victorian-era terrace building home to Vietnamese eatery Friend or Pho sold for $1.26 million. It is on a 93sqm site zoned Commercial 1.

91 Ryrie Street, Geelong
An owner occupier paid $1.205 million for the 278sqm building, which they will use for their new food and beverage offering.

19 Balaka Place, Bundoora
The 84sqm fish and chip shop on a 169sqm site sold for $420,000. It is leased until mid-2021 returning $1,860pcm.

142 Rathdowne Street, Carlton
An expanding Pakistani restaurant based in Fawkner signed a 6+5-year lease over the 48sqm space at $500/sqm.

193 Coleman Parade, Glen Waverley
An Asian restaurant leased the 380sqm former Korean BBQ eatery for 5 years with 5+5-year options at $442/sqm.

000 Offices 05

Suites 315 & 316, 430 Little Collins Street, Melbourne
An owner occupier bought the vacant adjoining suites, totalling 68sqm and located on the top floor of the Normanby Chambers Building, for $620,000.

Level 10, 420 Collins Street, Melbourne
Data Agility signed a 3.5+3-year deal in an assignment of lease for the 393sqm office within Victory Tower at $181,125pa plus GST.

Unit 6, 663 Victoria Street, Abbotsford
An owner occupier paid $1.85 million for the vacant 420sqm office within the Alma complex on the Yarra River, and will undertake a full renovation of the property.

36 Fennell Street, Port Melbourne
LG leased the 550sqm office for 5 years at $160,000pa net.

000Industrial 05

11-13 Morgan Street, North Geelong
The 1,200sqm facility on a 3,613sqm site sold for $1.3 million. Transport company KD Freight has a 12-month lease returning $75,000pa net.

1/31 Laser Drive, Rowville
The 526sqm warehouse sold for $1.015 million.

1801-1803 Sydney Road, Campbellfield
RV business OZ Caravan Hire Pty Ltd leased the 892sqm showroom on a 5,001sqm corner site for 3.5 years, with 2+2+2+2-year options, at $110,000pa plus outgoings and GST.

000 Development 05

243 Balaclava Road, Caulfield North
A local developer bought the vacant 722sqm unpermitted site, zoned General Residential 2, for $2.49 million.

81 Green Street, Cremorne
A local investor bought the vacant 245sqm site with a 320sqm 2-level office and warehouse at a land rate of around $11,000/sqm.

000 Specialised 05

77 Main Road, Hepburn Springs
Bellinzona Resort sold for around 4 million to local purchasers who plan to undertake a multi-million refurbishment of the vacant resort. The 1ha site has 43 guests rooms, conference centre, restaurant and wine bar, along with indoor pool, spa and sauna.

86B Kooyong Road, Armadale
Support organisation Arrow Health signed a 3+3-year lease over the converted church hall, which is owned by the Uniting Church, for $70,000pa.

000 Talking Points 05

UEM Sunrise Buys Hoddle Street Car Dealership
Developer UEM Sunrise has acquired the 5,390sqm Honda, Nissan and Hyundai car dealership at 21-53 Hoddle Street, Collingwood for $43 million from Jowett Motor Group.

The Malaysian government-backed group is likely to develop a mixed-use project on the site. It recently completed its $800 million 92-level Aurora Melbourne Central tower in the CBD.

Inner-city Collingwood has become a residential and commercial development hotspot. Construction has just started on a 9-level building, on the corner of Cambridge, Langridge and Oxford Streets, around the old Dyason & Co cordial factory. The project, a joint venture between Hamilton Marino Builders, CHT Architects and Urban Develop, will include 35 apartments and a 105-key hotel, while Tim Gurner is developing Atelier Residences at 22-33 Johnston Street, comprising 51 apartments and a 95-room hotel.

An 11-storey, 8,600sqm office building at 71 Gipps Street that will be 40% occupied by co-working brand Spaces is currently under construction, as is another 11-level building, of 3,000sqm on a 510sqm block at 51 Langridge Street.

Nearby, Cbus has built the 154-apartment Holme tower, and Grocon the 13-storey Northumberland office as part of a $120 million fund-through deal with Impact Investment Group.

Succession of Childcare Centre Sales
Several childcare centres across Melbourne’s suburbs have changed hands in quick succession, each with long-term leases typical of the asset class.

An investor bought the Guardian Early Learning centre at 82 Ferntree Gully Road, Oakleigh East for around $8.1 million, at a 5.4% yield. Zoned General Residential, the 1,415sqm site is leased for 15 years from 2016, and has capacity for 106 children.

The Wallaby Childcare centre at 2 Shimmer Street, Epping traded for $6.97 million with a new 15+10+10-year net lease returning $417,575pa plus outgoings and GST. The 917sqm facility is licenced for 150 places and is on a triple-fronted 2,979sqm site.

In Werribee, the Imagine Childcare & Kindergarten sold for $5.702 million. The 825sqm centre is on a 2,699sqm site and is leased for 20+10+10 years until 2060, returning $334,320pa plus outgoings and GST.

Five Wellbeing Chiropractic Clinics Sell For $4.4 million
A portfolio of 5 Wellbeing Chiropractic sites has sold for $4.4 million. All of the medical clinics have 7-year leases plus options with 3% fixed annual increases.

The sites include:

• 41 Craigieburn Road, Craigieburn, which sold for $1.025 million at a 5.66% yield

• 301 South Gippsland Highway, Cranbourne, for $1.008 million at 5.69%

• 841 High Street, Epping for $849,000 at 5.67%

• 118 Barries Road, Melton sold for $660,000 at 5.90%

• 31 Barkly Street, Sunbury for $858,000 at 5.65%.

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.