Weekly Wrap

Fitzroys Weekly Wrap - 28th August 2020

Posted on 28th August 2020

000 Retail 05

446 Neerim Road, Murrumbeena
The 250sqm building on a 335sqm site sold for $1.195 million. It has a vacant retail and office space fronting Neerim Road and a tenanted 2-bedroom residence at the rear.

427 Church Street, Richmond
Burger franchise New York Minute leased the 264sqm former home of Jimmy Grants for 7 years at $100,000pa net.

408 Smith Street, Collingwood
A hairdressing and beauty salon leased the 140sqm ground floor shop, with rear access and on-site parking, for 5 years at $55,000pa net.

129-131 High Street, Kew
Sleep apnoea device specialist CPAP Victoria leased the 130sqm ground floor space for 3 years plus options at $52,000/pa net. This will be the clinic’s 13th site.

000 Offices 05

5/151 Barkly Avenue, Burnley
The vacant 160sqm strata office with 4 on-site parking spaces sold for $750,000.

000Industrial 05

19-21 Peninsula Boulevard, Seaford
A local investor bought the 1,050sqm office building with medically-approved clean room on a 1,605sqm site for $1.88 million, at a 7.1% yield. It is leased to ASX-listed Paragon Care Group on a new 5-year lease with options to 2035.

000 Development 05

149 Hansworth Street, Mulgrave
A private syndicate bought the 1.67ha site, which has a permit for 2 residential towers and 30 townhouses, for $11.5 million. Pong Property Development Pty Ltd was the vendor.

49 Military Road, Avondale Heights
Zoned Commercial 1, the 1,745sqm corner site with a combined 126m frontage and adjoining a Coles supermarket sold to a local developer for $2.7 million. Currently, it has a fuel station and workshop and separate kebab stand that return a combined $120,000pa plus GST.

000 Specialised 05

230 Mountain Highway, Wantirna
Owner operators sold the 378sqm medical centre, on a 2,093sqm site, for $4.319 million at a 4.6% yield. The property has a permit for 8 medical practitioners and is occupied by long-term tenant Knox Audiology and specialist suites.

609-611 South Road, Bentleigh East
A COVID-19 testing centre leased the 228sqm corner building that was formerly used by a nurse-on-call business. 4Cyte Pathology signed a 12-month lease at $65,000pa.

000 Talking Points 05

Parkville Post Office Makes Historic Move
Parkville Post Office has moved for the first time since 1889. Fitzroys agents Mark Talbot and Lewis Waddell negotiated the historic transaction for 55 Royal Parade, Parkville.

Australia Post signed a long 10-year deal for over the former 7-Eleven premises on busy Royal Parade, in a prominent location opposite Melbourne University and a few doors down from the iconic Naughton Hotel.

Talbot and Waddell struck the deal at a rate in the vicinity of $400/sqm net on behalf of a private investor. The property has an open-plan ground floor retail area of 108sqm.

“A 10-year lease is quite unique, especially in the current climate, and reflects Australia Post’s huge confidence in the location, and in the ongoing service they provide to the community and nearby businesses,” Talbot said.

Waddell said the transaction represented the first time Parkville Post Office had relocated since being established more than 130 years ago. The previous location of Australia Post, a two-storey, neo-Gothic polychrome brick building on a bluestone plinth on Fitzgibbon Street, was sold earlier this year with the purchaser intending to renovate and occupy that building.

“The Royal Parade property presented an outstanding opportunity to secure a high-profile building in a premier location, and Australia Post was seeking a quality space and location that would do justice to their historic move,” Waddell said.

“Accessibility and exposure are always high on the priority list for Australia Post. This property offers excellent exposure to the high levels of traffic along Royal Parade, close to Melbourne University, Lygon Street and renowned medical and education precinct, and has a tram stop on its doorstep allowing for easy access to the Melbourne CBD just 1 kilometre away.”

Talbot said Australia Post’s integral role in day-to-day life has been reinforced during the COVID-19 period, with delivery services becoming increasingly important as Melburnians spend more on online shopping.

Brand New Broadmeadows Estate
ASX-listed company Growthpoint sold a former Woolworths distribution centre in


Broadmeadows for $50.2 million to Ivanhoé Cambridge and LOGOS, who will redevelop the site into a $230 million logistics estate.

The project will deliver more than 120,000sqm of logistics assets, with a focus on e-commerce, distribution, and food and cold storage facilities.

Salta and Victorian Government Seal Deal for Intermodal Terminal
Salta Properties and the Victorian Government have agreed to jointly fund Melbourne’s largest intermodal terminal, in Dandenong South.

They will invest $28 million on government-owned land to connect rail to the boundary of Salta’s Nexus Industrial Estate. This will assist the movement of shipping containers from the Port of Melbourne, currently limited by the availability and capacity of trucks to transport freight via the Monash Freeway.

Salta also invest another $50 million to build the Dandenong South Intermodal Terminal on the 180-hectare Nexus estate. It has already spent more than $200 million on land, road, and other infrastructure works in preparation for the terminal.

South-East Industrial Leasing Lively
Meanwhile, industrial leasing activity in the south-east is gaining momentum. Also at Nexus, Salta secured Belle Banne Conveyor Services, part of the world’s largest manufacturer of mining and industrial conveyor belting, Fenner Dunlop, for a new 6,998sqm office and warehouse facility on a 10-year term.

Baby Bunting pre-leased a 24,307sqm office and warehouse from developer Pellicano within the M2 Industry Park, another Dandenong South estate. Pellicano will construct the facility on a site of almost 46,000sqm.

Closer to the bay, freight and logistics giant Toll Global Express leased the final speculative tenancy within Frasers Property Industrial’s 23ha Braeside Industrial Estate. Toll’s high-clearance 10,787sqm will include 591sqm of office space.


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.