Weekly Wrap

Fitzroys Weekly Wrap - 3rd July 2020

Posted on 03rd July 2020

000 Retail 05

20 Ryley Street, Wangaratta
The 1,815sqm Hungry Jack’s island site sold for $5.21 million with a 5-year lease plus option to December 2027, returning $109,738pa.

143 Church Street, Richmond
Zoned Commercial 1, the vacant 82sqm shop on a 141sqm site sold for $620,000.

343 Clarendon Street, South Melbourne
Chef Jessi Singh will open new restaurant Mr Brownie Rooftop Hotel after signing 5-year lease at $165,000pa for the multi-level space. Singh has been involved in other restaurants and venues including Daughter in Law, Mrs Singh, Babu Ji and Don’t Tell Aunty.

16 Toorak Road, South Yarra
Sherry and empanada bar operator DoubleTree International (Australia) leased the 47sqm ground floor space 3+3+3 years at $30,000pa.

Shop 1, 1414 Toorak Road, Camberwell
A floor covering business leased the 126 sqm space at $44,000pa gross with 3% annual increases.

000 Offices 05

15 Station Street, Kew East
The 545sqm office and showroom on an 840sqm site sold for $3.05 million. Zoned Commercial 1, it is leased for 2 years with no option and returns $75,000pa net plus GST.

Suite 7, 151 Barkly Avenue, Richmond
The 120sqm office was leased for 3 years at $45,000pa net.

000Industrial 05

163-165 Islington Street, Collingwood
A local business owner paid $8.4 million for the 1,200sqm corner warehouse with plans to occupy. It has a commercial kitchen, coolroom and freezer and was formerly tenanted by a seafood products business.

13-15 Cherry Lane, Laverton North
McConnell Dowell’s facility sold for $7.35 million with 10-year triple net leaseback to the infrastructure construction company that reflected a 4.9% yield. The 1.4ha site has multiple buildings totalling 2,570sqm and a 140m frontage to the Princess Freeway.

6/177 Beavers Road, Northcote
An investor bought the 730sqm office and warehouse with 10 parking spaces for $1.56 million. It is zoned Commercial 1 and is tenanted on a monthly basis.

000 Development 05

1542-1544 High Street, Glen Iris
A Sydney-based developer bought the 1,700sqm site for $5.68 million. Zoned General Residential, the site is approved for 22 apartments.

81 Green Street, Cremorne
The 245sqm site with a 320sqm sqm warehouse sold for $2.7 million and will be redeveloped into a 2-level office building. The purchaser recently sold the 273 Swanston Street building in Melbourne, leased to New Taipei Juicy Dumpling and Noodle House, for $9.2 million after 70 years of ownership within their family.

000 Specialised 05

405 Canterbury Road, Surrey Hills
Peak Chiropractic signed a 5-year lease with an option at $90,000pa for the showroom, which is currently being converted to a medical facility.

000 Talking Points 05

Burke Road, Camberwell attracts another Melbourne debut
Cult women’s footwear label FRANKiE4 is the latest retailer to make its Melbourne debut in the famous Burke Road and Camberwell Junction precinct, demonstrating the precinct’s reputation as one of Melbourne’s most renowned shopping and lifestyle destinations.

Chris James of Fitzroys negotiated the off-market lease for the single-level 160sqm shop at 626 Burke Road, for 5 years at $120,000 per annum on behalf of a private investor.

FRANKiE4 was established in Queensland by a podiatrist and physiotherapist and has generated a large and enthusiastic following for its fashionable designs that also take into account body mechanics and healthy wearing. The label invests in patenting and design registrations of elements in most of its unique designs.

The deal arrives within 12 months of cult Sydney-based chicken shop Chargrill Charlie’s opening its first Melbourne site in a space fronting the Camberwell Market, after a lease negotiated by James. Fashion retailer Ballet Emporium, also from Sydney, made its Melbourne debut at 849 Burke Road more recently, having acquired the property in a $1.675 million sale also negotiated by Fitzroys.

James and Fitzroys colleague David Bourke sold the dual-fronted freehold directly next door at 628 Burke Road for $4.28 million in recent months to national telecommunications company Telstra, which is currently repositioning and refitting the building for a brand-new flagship store.

“The recent influx of national interest demonstrates the confidence retailers have in the prospects of Burke Road and the Camberwell Junction,” James said.

“Vacancies in the prime retail section of Burke Road, Camberwell are at a 3-year low, testament to the successful mix of quality national and local retailers and food and beverage operators in what is the shopping and lifestyle heartbeat of Melbourne’s inner- east.”

James said Burke Road, Camberwell services an established, loyal and affluent catchment that is one of Melbourne’s most enviable.

“Retailers have demonstrated faith in the strip right through the COVID-19 period.”

James said medium and high-density residential development has fuelled a population surge in the inner-east, increasing the immediate catchment and boosting trade and further driving enquiry from tenants and owner occupiers.

The local development pipeline includes major projects such as the $175 million mixed-use, dual tower Camberwell Village, and Chinese development giant Dahua Group’s $300 million Hawthorn Park that will bring 345 apartments to the area.

The Village Dandenong Sells For $29.1m
An investor has bought the Woolworths-anchored The Village Dandenong shopping centre for $29.1 million, at a 5.2% yield, from RG Property.

The 5,343sqm centre is on a 1.9ha site at 81-125 Princes Highway and includes the 3,800sqm supermarket and BWS Liquor, and 15 specialty retailers.

Fitzroys Shopping Centre team has been appointed to manage the centre by the new owners.

Victorian Government Approves a Further $1.1 Billion of Developments
The State Government announced the approval of another round of projects with a combined value of more than $1.1 billion. They include:

• 2 of the 5 towers at Lendlease’s Collins Wharf project at 938 Collins Street, Docklands. They will comprise 659 apartments and rise 28 and 29 storeys.

• A $250 million development at 31 Station Street, Caulfield that will include build-to-rent, affordable housing, a supermarket, retail and office space.

• Apartment buildings at 103-109 and 115-117 Boundary Road, North Melbourne.

• 6 multi-level buildings at 346-350 Macaulay Road, Kensington with a combined 426 dwellings.

• A $110 million 9-storey mixed use building in Glen Iris next to Gardiner train station.

• The $220 million Geelong Civic Precinct, and

• A $200 million solar farm at Kennedys Creek, north-east of Benalla

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.