Weekly Wrap

FItzroys Weekly Wrap - 18th September 2020

Posted on 18th September 2020

000 Retail 05

310-318 New Street, Brighton
A Melbourne family sold the 2-level, 530sqm shop and office for $3.3 million to a local investor after 30 years of ownership. The building is on a 530sqm corner site over 3 titles and returns $145,089pa from 4 tenancies.

174-176 Through Road, Camberwell
The vacant 300sqm showroom and office building on a 360sqm site sold for $1.35 million. Zoned Commercial 1, the property has 5 parking spaces and ROW.

443 Upper Heidelberg Road, Ivanhoe
A local investment group bought the recently-leased 186sqm café space within Caydon’s Ivanhoe Apartments for $770,000, at a 5.8% yield.

95 Swan Street, Richmond
An Asian fusion eatery leased the 203sqm former Benny Burgers shop at around $100,000pa net.

Unit 1, 171 Domain Road, South Yarra
The Gilson restaurant leased an apartment above its dining space at $50,000pa net to use for functions and private dining.

1033 High Street, Armadale
High-end jeweller HSLK leased the 85sqm ground floor space at around $800/sqm.

Shop 1, 454 Toorak Road, Toorak
Linen store Polite Society leased the 170sqm space at more than $650/sqm.

000 Offices 05

47-51 Little Boundary Road, Laverton North
A Sydney-based first aid training business bought the 90sqm 1st floor office for $310,000.

Level 2, 239 Park Street, South Melbourne
National freight and shipping company Speedmark Australia leased the 356sqm self-contained whole floor office for its new Melbourne headquarters, at $75,000pa plus GST over 4 years.

15 Vaughan Street, Essendon Fields
Serco leased the 6,296sqm former Good Guys space for its new call centre, backfilling the remaining 2.8 years on the lease at $2.3 million pa. The company runs call centre operations for the Australian Tax Office, Centrelink, Medicare and other federal government agencies. The Good Guys had moved their office to the IBM Building in Southbank after merging with JB Hi-Fi in 2016.

000Industrial 05

17 Broadfield Road, Broadmeadows
Lighting Manufacturer Darkon Lighting will move into a purpose-built 3,824sqm facility. It paid a gross rate of $1,796/sqm, or around $6.868 million, in the pre-commitment acquisition deal with Vaughan Constructions.

3-7 Syme Street, Brunswick
Not-for-profit Brunswick Industries Association sold off the 1,996sqm site for $3.9 million to a local investment fund. Zoned Industrial 1, it has a combined building area of 1,650sqm and was offered with a leaseback.

560 City Road, South Melbourne
A local buyer bought the 510sqm smash repairers workshop for $2.8 million.

8 Wren Road, Moorabbin
An online fashion group paid $1.49 million for the fully refurbished 700sqm brick office and warehouse.

37 Lillee Crescent, Tullamarine
The former owner occupier sold the vacant 651sqm office, showroom and warehouse next to Melbourne Airport for $1.18 million.

66 Lillee Crescent, Tullamarine
A logistics tenant specialising in the transport and supply of PPE and face masks signed a 3-year lease at $120,000pa net.

96 Lewis Road, Wantirna South
A car servicing firm leased the 3,390sqm office and warehouse on a 9,198sqm site at around $80/sqm.

2/26-28 Stephen Road, Dandenong South
Zoned Industrial 1, the older-style 3,947sqm factory and office was leased at $200,000pa.

000 Development 05

279-287 Wellington Street, Collingwood
A local investor bought 4 adjoining properties on a combined 748sqm site for $5.32 million. Two of the properties are leased, one potentially until the end of 2029. The vendors acquired the properties over 24 years.

000 Talking Points 05

German Group Expands CBD Footprint
Deka Immobilien has bought the 22-level 452 Flinders Street tower for more than $450 million, giving the German investor neighbouring A-grade office assets in the Melbourne CBD.

Across Custom House Lane, Deka Immobilien also owns 15 William Street, a 20-level tower that it bought for $167 million in 2009. Both buildings have frontage to Flinders Lane.

The 452 Flinders Street tower was bought from Dexus Wholesale Property Fund at an 11% premium to the property's June book value. The Dexus fund paid $194 million for the tower in 2011 before undertaking a foyer refurbishment overhaul and leasing overhaul, taking it to 100% occupancy with a weighted average lease expiry of 6.3 years.

The 38,000 sqm building comprises 17 levels of office space, a 3-level basement car park, ground floor retail and end-of-trip facilities.

South Melbourne Office Market Attracts New Development
Pallas Capital and development arm Fortis have bought a South Melbourne site for $6.9 million, and will build a 6-level office building with an end value of $27.5 million.

The 496sqm 18-22 Thomson Street property currently has a 1970s 3-level office building and was sold by the Appel family.

Fortis recently bought 10-12 Male Street & 41A Black Street, Brighton for $14.25 million and will develop an 16-apartment project on the 2,192sqm corner site.

Pallas Group, the parent company of Pallas Capital and Fortis, is also planning a $300 million mixed-use development in Clifton Hill, on a 5,500sqm site at 612-614 Smith Street that is directly opposite Development Victoria’s Fitzroy Gasworks project.

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.