Weekly Wrap

Fitzroys Weekly Wrap - 24th July 2020

Posted on 24th July 2020

000 Retail 05

301, 305 and 309 Harvest Home Road, Epping
Separate investors bought 3 strata retail properties within Lendlease’s Aurora Village for a combined $2.9 million. The sales reflected an average yield of 5.4% and average building rate of $9,355/sqm. 301 Harvest Home Road is leased to national tenant Bottlemart on an 8+8-year lease, 305 Harvest Home Road is home to Mediterranean eatery Suburban Grill on a 7+7-year lease, and 309 Harvest Home Road has a 5+5-year lease to Middle Eastern grocer Aurora Groceries.

310 Stephensons Road, Mount Waverley
The 2-level, 236sqm retail and office building on a 218sqm site sold for $1.115 million at a 3.9% yield. It is leased to an internet and gaming café.

306 Whitehorse Road, North Balwyn
Growing business Stylish Dog Grooming leased the 139sqm 2-level building for 5 years at $54,000pa.

443 Upper Heidelberg Road, Ivanhoe
A café leased the 186sqm space within Caydon’s Ivanhoe Apartments at $45,000pa.

305 Auburn Road, Hawthorn
A florist business leased the 120sqm ground floor space on the corner of Broomfield Road for 4 years with an options at $38,000pa net.

000 Offices 05

Level 1, 10 Yarra Street, South Yarra
An investor bought the vacant 300sqm A-grade floor for $2.83 million from the previous owner occupier.

Level 2, 141 Osborne Street, South Yarra
Cleaning company Cirka leased the 300sqm floor within a recently refurbished building for 6 years, at $150,000pa.

510-516 La Trobe Street, Melbourne
Building project management group SwiftCo signed a 5-year lease over the recently refurbished 300sqm space over the second and top floors of the building at $90,000pa net. They are moving from their nearby offices at 414 La Trobe Street.

000Industrial 05

12/55 Baretta Road, Ravenhall
A private syndicate bought the 80sqm unit for $200,000.

Building 4, 82-86 Berkshire Road, Sunshine North
The 5,184sqm office and warehouse building with three street frontages was leased on a 5+5+5-year term at $363,510pa net.

000 Development 05

13 High Street, Prahran
The 712sqm site sold for $3.3 million with plans for a 15 apartment development. Existing improvements include a single-storey brick house and car port.

000 Talking Points 05

Retailers Keen on South Yarra Prospects
Fashion label Maatsuyker has secured a retail space in the prime section of Melbourne’s famous Chapel Street, South Yarra, after a busy campaign that demonstrated the lure of the strip to businesses.

Fitzroys Agency Executive Lewis Waddell negotiated the lease at 574 Chapel Street on behalf of a private long-term owner at $60,000 per annum plus outgoings and GST.
The 130sqm property is split into two levels of 65sqm each, and has a double garage at the rear with access from Forster Street.

Waddell said the property offered a high-quality ground floor fit-out that was ready to occupy.

He said the high-end men’s apparel brand is moving from Greville Street, Prahran, and took the opportunity to be close to the exciting Capitol Grand Precinct and other high-end brands, in the prime section of one of Melbourne’s most iconic shopping strips.

“Some tenants have been seeking opportunities to move and find space during COVID-19 restrictions, looking to utilise the time to search and secure new locations and new spaces, and undertake fit-outs.

The property is located just metres from major fashion labels including Country Road, Scanlon Theodore, Gant, SABA, Marimekko, DIDA, MJ Bale, Tony Bianco and Tigerlily.

“More than 60 enquiries were received, predominantly from fashion labels and retailers, demonstrating businesses still want to be a part of Chapel Street, South Yarra,” Waddell said.

“Businesses and operators are showing confidence in the prospects of Chapel Street, South Yarra. Growing pedestrian traffic through all hours will further enhance the immediate catchment.”

Waddell said Melburnians continue to embrace medium and high-density living and seek live and work in the same area, reflected by a new wave of commercial and residential supply anchored by the $1.25 billion Jam Factory precinct overhaul, the Capitol Grand tower, and the amenity and accessibility of Chapel Street, located close to South Yarra station and multiple tram routes.

Some 50,000sqm of new office space will be introduced at the Jam Factory in the coming years, as well as retail space and an upgrade of its hospitality offering and famed Hoyts cinema that will further enhance the vibrancy of the precinct. Developments including 627 Chapel Street and Chapel Plaza at 402 Chapel Street will bring a further 30,000sqm of new offices, in addition to large-scale residential development in the Forest Hill precinct, and the Aloft Hotel.

Former CSIRO Highett Research Site Sells to Developer
The CSIRO has sold its 9.34ha former research site in Highett for $99 million to developer Wolf Group.

The vacant and cleared 37 Graham Road site has development potential for more than 500 dwellings, and 4ha of the property has been earmarked for a new public park. It is close to a new Woolworths supermarket and 100m from Highett train station.

The sale followed a $30 million clean-up due to asbestos contamination.

According to the Australian Financial Review, the buyer was Sunkin Highett, a vehicle of Melbourne-based Wolf Group. A company related to Wolf’s managing director Zhaojun Zhu, Chaolong Developments, bought Century City Walk Shopping Centre and the adjoining 200-room Novotel Melbourne hotel in Glen Waverley last year for $150 million from iProsperity Group.

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.