Weekly Wrap

Fitzroys Weekly Wrap - 14th August 2020

Posted on 14th August 2020

149 High Street, Kew
The shop near Kew Junction sold for $1 million, and is leased until October returning $33,745pa net.

422 Bourke Street, Melbourne
Heavens Salon signed a 7-year lease for the 120sqm space at $135,000pa.

477 Elizabeth Street, Melbourne
Le Reve Patisserie leased the 42sqm space at $3,000/sqm, adding to its locations in Oakleigh and Carlton.

679 Glenferrie Road, Hawthorn
Expanding business The Cookie Box leased the 35sqm space within the Lido Cinemas complex for 3+3 years, adding to its store in Windsor. Rents in the complex can reach circa $1,300/sqm depending on size and position.

166 Swan Street, Richmond
Mexican food chain Zambreros leased the 110sqm ground floor shop, next to Messina and opposite Grill’d, at over $700/sqm.

1/36 The Esplanade, Brighton
The 383sqm ground floor office opposite Brighton Beach sold for $2.55 million. It includes 8 basement parking spaces.

Suite 6, 670 Canterbury Road, Surrey Hills
A local investor bought the 237sqm suite with 7 parking spaces for about $1.03 million, at a 5.6% yield. It is leased for 4+4 years.

151-159 Turner Street, Port Melbourne
Health and medical supplies distributor OPC Health sold its headquarters of nearly 25 years to an owner occupier for $5.6 million. The building is on a 1,915sqm site under the Bolte Bridge off-ramp. OPC is merging with oapl, also part of the OPED Group, and moving to Oakleigh East.

20 Boileau Street, Keysborough
An investor paid $533,000 at a 4.9% yield for the 293sqm office and warehouse on a 493sqm site. Longstanding tenant Ray Cox Painting Services Pty Ltd has a 2-year lease expiring in December 2021 with no options.

106 Boundary Road, Sunshine West
Vortex Group signed a 5-year lease for the 2,241sqm office and warehouse at $180,000pa.

11E Clarice Road, Box Hill
A wholesale grocery business signed a 3-year lease over the 320sqm showroom and warehouse at $140/sqm.

48 Export Drive, Brooklyn
Export Demo Pty Ltd inked a 4+4-year lease over the 1,750 sqm industrial facility on 4,756sqm of land at $165,000pa plus outgoings and GST.

43 Craig Street, Spotswood
Cadence Property Group bought the 3.8ha former home of the Australian Quarantine and Inspection Service for around $14 million. The AQIS had been at the site since the 1950s and recently moved to a new $379 million government facility in Mickleham. A private syndicate had owned the Spotswood property, opposite Scienceworks, since the 1990s.

CBD Office Developments Move Ahead
Developer Golden Age has received approval from the City of Melbourne for a 27-level office building on the site of the Uniting Church’s former Victoria and Tasmania headquarters in the CBD.

The 130 Little Collins Street project will be built on a 651 sqm site, on the corner of Coromandel Place, with a combined 53m frontage. The 8-level office building currently on the site was home to the Uniting Church since its construction in 1967. The Uniting Church has moved to the 130 Lonsdale Street building within Charter Hall’s Wesley Place development.

Golden Age bought the last year for more than $40 million. At the time it had approval for a 184-room, 27-level hotel.

New data from the Property Council of Australia showed office vacancy in the Melbourne CBD grew from a historically low 3.2% to 5.8% over the first half of 2020, after experiencing its largest supply of new office stock in nearly 30 years.

Sub-lease vacancy increased by around 10,000sqm but remains below the historical average. According to the PCA, Melbourne will add more than one third of Australia’s new office space for the remainder of 2020, with 82% of this already pre-committed.

Melbourne CBD office projects that have recently received approval at state level include Charter Hall’s $1.5 billion office project at 555 Collins Street, a 35,000sqm office tower by Dexus at 52-60 Collins Street, and Beulah International’s mixed-use “Green Spine” at 118 City Road, which will include 27,000sqm of office space.

Mirvac and Milieu Reveal Brunswick Build-To-Rent Plans
Diversified developer Mirvac, in partnership with local group Milieu Property, has moved to pre-planning for its Albert Fields project in Brunswick, which will bring more than 500 build-to-rent homes on a 1ha site.

Under the build-to-rent model, developers build apartments and rather than divest them, lease them out to tenants, typically on longer terms than those in the private rental market.

Mirvac acquired the 395-403 Albert Street site, opposite Gilpin Park, at the end of 2019 for $40 million while entering into an agreement with Milieu Property, which had recently bought 395 Albert Street.

The project has an estimated cost of $172 million and is due to start construction in mid-2022, subject to planning approval. Plans will be lodged with Moreland City Council later in the year.

Major property group Stockland bought the neighbouring 4,010sqm timber yard at 429-435 Albert Street site for $15 million a few months ago with plans to build 10 townhouses and 140 apartments.

Mirvac is developing a build-to-rent project with PDG on the Munro site opposite the Queen Victoria Market, where it will take ownership of and lease out 490 built-to-rent units within the dual-tower development, and over summer it bought the former Melbourne Convention Centre site at 7-23 Spencer Street for $200 million for another build-to-rent tower with 472 apartments, alongside a new office tower.

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.