800-802 Burke Road, Camberwell
The Shell service station on a 1,633sqm corner site sold for $6.5 million. Zoned General Residential, it is leased to Shell until March 2021 with an option to 2026 and returns $133,780pa net.
51A Main Road, Monbulk
The Cellarbrations outlet sold for $1.165 million, at a 4.4% yield. The 248sqm store on a 384sqm site recently underwent a $250,000 tenant fit-out, and has a 10-year lease until May 2029 and options until 2039 that returns $51,215pa plus GST.
51B Main Road, Monbulk
The 365sqm Salvos op-shop next door sold for $1.78 million at a 4.96% yield. The Salvos pays $88,242pa plus GST on a lease running to July 2025 with options to 2040.
170-172 Nicholson Street, Footscray
A food business bought the 2-level, 269sqm building, which is on a 421sqm site over 2 titles, for $1.55 million.
Unit 15, 19-33 Murray Road, Preston
Furniture retailer Gatsby Living signed a 7-year lease for the 1,120sqm showroom within Northland Homemaker Centre at $285 to $325/sqm.
3/201 Ormond Road, Elwood
The vacant 40sqm ground floor space sold to an owner occupier for $405,000.
Suites 105 & 106, 470 St Kilda Road, Melbourne
A local owner occupier relocating from the CBD bought the 2 ground floor offices totalling 170sqm for $1.35 million.
299 Chapel Street, South Yarra
Software company Damstra Technology leased the 450sqm level 3 space within the Como Centre for 5 years, at $632/sqm.
1 Balmoral Street, Frankston
VCAT signed a 10-year lease over the 942sqm office at $310,000pa.
197-199 Moreland Road, Coburg
Jobfind signed a 2-year lease over the 318sqm office building at $70,000pa.
69-71 Voltri Street, Cheltenham
Zoned Industrial 1, the 3,328sqm site with a 520sqm warehouse and a lunch kiosk sold for $2.73 million.
27 Peterpaul Way, Truganina
Axiom Australia sold a 6,446sqm corner development site within its industrial estate for $2,417,250.
12 Dairy Drive, Coburg
A group of investors bought the office and warehouse for $840,000 at a 4.3% yield.
5/12 Marriot Street, Oakleigh
The 100sqm office and warehouse unit sold for $495,000.
221 Browns Road, Noble Park
Nationwide Group leased the 4,832sqm facility at around $90 to $95/sqm. Construction industry manufacturer SAMCO Steel & Precast Pty Ltd is the owner. The head offices of Nationwide Group’s majority shareholder, The Royal Automobile Club of Victoria, are adjacent to its new site.
44 Marshall Court, Altona
Tony Innaimo Transport leased a tenancy within Logos’ 30,000sqm Altona Logistics Estate. The family-owned freight company signed a 5-year deal over the 7,300sqm office and warehouse at $82/sqm net.
Unit 37, 640-680 Geelong Road, Brooklyn
A data communications firm signed a 5-year lease over the 2-level office and warehouse at $50,000pa.
48 High Street, Northcote
Investor and developer The Wilbow Group paid $4.4 million for the 2-storey 847sqm office building on a 1,027sqm site at the entrance of the Westgarth shopping strip. Zoned Commercial 1, it is partially leased and has 14 basement parking spaces.
415 Bay Street, Brighton
Zoned Commercial 1, the 178sqm corner site with a combined 36m frontage and vacant 211sqm shop and office building sold for $1.5 million to a developer.
270 Seaford Road, Seaford
A medical operator bought the 400sqm clinic, which has 9 consultation rooms and 2 treatment rooms on a 2,082sqm site, for $2.3 million to use for their own practice.
$6m Deal Inked for New Epson Melbourne Offices
The new Melbourne headquarters of multinational electronics company Epson has sold for $6 million, in a sale that demonstrates the ongoing attraction of commercial real estate for investors in the current economic environment.
Fitzroys Director, Paul Burns negotiated the off-market sale of 90 Camberwell Road, Hawthorn East on behalf of Forza Capital. The sale price reflected a 4.65% yield.
The fully refurbished 630sqm office and showroom building is on an 842sqm site with 14 parking spaces. New tenant Epson Australia Pty Ltd is currently fitting out the premises, and recently signed a 5+5+5-year lease returning $279,000 per annum with 3.75% annual increases.
The property sold at a strong building rate of $9,524/sqm and land rate of $7,125/sqm.
Burns said the property sold as a passive investment to a local buyer.
“The purchaser saw immense upside in the secure terms of the lease to a blue-chip tenant,” he said.
Zoned Commercial 1, the property also offers excellent redevelopment potential for a much higher density development in the future – for either residential or commercial uses.
Burns said investors are continuing to actively source well-located and income-producing assets despite COVID-19.
“There is still strong demand for income-producing assets, particularly given the historically low official cash rate and volatility in the stock market.
“Commercial property is viewed as a stable alternative, and Melbourne’s reputation as an investment safe haven remains a compelling factor for assets such as this.”
The property is in a high-profile, inner-east location, close to the Burke Road and Camberwell Junction retail and commercial precinct, as well as the Glenferrie Road retail and lifestyle strip.
Burns said the inner-east has emerged as one of Melbourne’s most highly regarded locations for investors around Australia and overseas.
“The inner-east’s convenient location and renowned lifestyle amenity has made it apreferred place to live and has become a focus for businesses and tenants.”
Burns said Melbourne’s inner-east and other suburban and metropolitan markets would continue to attract the attention of local and offshore investors alike, as the impact of COVID-19 creates more demand for offices closer to where employees live, thus enhancing their lettability.
“Even if a small percentage of CBD tenants choose to move away from the high density CBD, this will have a big impact on the shallow pool of suburban office stock that is available and is likely to result in upward pressure on rents.
“Financial considerations in the current climate may encourage companies to take up space in the suburbs, which offer lower rents.”
The inner-east has an established catchment that has received strong enquiry for office space in recent months, and medium and high-density projects will continue to see more people living in the catchment.
Fitzroys has recorded a strong uptick in enquiry from a range of tenants looking to move to the growing office markets of Hawthorn, Kew and Camberwell, and strong transaction results have been witnessed in these locations.
ASX-Listed Data Centre Operator Buys West Footscray Business Park
Date centre group NextDC has bought a West Footscray site for $21.8 million from Michael Fox and Robert Costa’s development company CostaFox, in one of multiple larger deals struck across the inner west.
CostaFox had previously planned to build a 150-unit business park at 25-27 Indwe Street.
Also in West Footscray, another Melbourne developer, Cadence Property Group has paid $10 million for the Winnipeg Textiles site at 36 Roberts Road with a leaseback agreement.
Cadence recently bought the 3.8ha former home of the Australian Quarantine and Inspection Service opposite Sciencworks in Spotswood for around $14 million. The AQIS had been at the site since the 1950s and recently moved to a new facility in Mickleham.
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.