Retail sale, 86 Smith Street, Collingwood
Leased to Shane Delia’s popular eatery Biggie Smalls on the ground floor, the $3.58 million sale set a new price record for a single-fronted Collingwood retail building, and reflected a sharp 3.51% blended yield on the combined retail and office rental. An interstate Chinese investor purchased the property after strong interest from local and offshore parties.
Retail lease, 119 Glenferrie Road, Malvern
Finesse Skin & Body Care has moved into a prime space within the evergreen retail strip. It will pay $80,000pa net over five years with a five-year option for the building, which has circa 100 sqm of ground floor retail, and first floor space.
Retail sale, 1/237 Napier Street, Fitzroy
Located within the former Bentwood furniture warehouse, the new ground-floor café of 192sqm is at the base of an apartment development and sold for $2.2 million at a 4.55% yield.
Retail sale, 224 Glenferrie Road, Malvern
An interstate investor acquired the BOY & Co. fries and milkshakes diner for $1.86 million under the hammer at a 2.5% yield. The 194sqm site has a 123 sqm building and on-site parking, and is leased on a 5 5 5-year deal returning $45,894pa plus GST.
Retail sale, 1 Elland Avenue, Box Hill
The Commonwealth Bank Home Lending Centre purchased the ground-floor space at the bottom of a mixed-use building for $531,000, at a projected yield of 6.5%.
Retail sale, 138 Austin Road, Seaford
A local investor purchased the fish and chip shop under the hammer for $451,000 at a 3.49% yield. The 186sqm site has a 90sqm brick building with sold with a five-year lease returning $15,747pa net and future development potential. A private investor was the vendor.
Hotel/Leisure sale, Level 1, 15 Collins Street, Melbourne
The 230sqm premises of Uncle Restaurant sold for a $4.35 million at a 3.98%, with a 12-year lease returning $173,360 per annum.
Showrooms/Bulky Goods sale, 1053-1057 Western Highway, Ravenhall
The Bottlemart site of 3,767sqm has a 2,015sqm building and was picked up by an investor for $3 million at a 5.8% yield, returning $173,786 per annum net plus GST.
Office sale, Level 3, 501 La Trobe Street, Melbourne
The vacant floor of 280sqm sold for around $2.31 million, and has partitioned offices, open plan office area, boardroom, reception area and views over Flagstaff Gardens.
Office lease, Ground Floor, 466 William Street, West Melbourne
Construction company Capital Group leased the 236 sqm office suite on a 2.5-year deal at $82,600pa plus GST from a private landlord that had originally developed the building. It has a boardroom, conference room, two offices and open-plan workspaces.
Land/Development sale, 5 Asling Street, Brighton
A Chinese developer secured the 1,006 sqm site at auction with a bid of $4.45 million. It is zoned General Residential and within the Bay Street Activity Centre.
Land/Development sale, 2 Cole Street, Williamstown
Zoned Commercial 1, the corner site of 886sqm has a combined triple frontage of more than 100m and sold with development upside to a Chinese buyer for $3.8 million, at a 1.5% yield. It is leased to Telstra until 2022 with a one-year option.
Land/Development sale, 18 Victoria Road, Hawthorn East
Backing onto Auburn train station and with a Commercial 1 zoning, the car mechanics site of 373sqm sold for $1.85 million with commercial and residential development potential, at a 3.25% yield on the short-term holding income.
Talking points
“Superblocks” for the CBD? Melbourne City Council is considering plans for “superblocks” in the CBD, which would see pedestrians and cyclists given priority over cars and other vehicles throughout the Hoddle Grid and Docklands.
Different parts of the CBD would see varying restrictions; while speed limits would be capped at 30km/h throughout the area, some could be as low as 10km/h for busier pedestrian pockets. Particularly congested areas, including those outside Flinders Street and Southern Cross stations, and tram stops on Collins Street and Swanston Street, may be designated as car-free zones.
On-street parking could also be removed in favour of wider footpaths to also encourage outdoor dining and greenery, as well as easier pedestrian movement.
Industrial land hot property: A strong leasing market, driven by logistics, transport, retail and food groups, has prompted Charter Hall to acquire a 58-hectare site in the western suburbs industrial hub of Truganina for $55.35 million.
It will develop a $330 million estate on the 442-450 Doherty’s Road site, which is near its existing Drystone estate that has 180,000sqm of logistics facilities tenanted by Target, Woolworths, Couriers Laverton Cold Storage. Demand from companies utilising e-commerce and online shopping avenues for industrial and logistics space is growing, as consumer habits evolve and affect distribution, supply and delivery chains.
Melbourne’s western suburbs have dominated industrial transaction activity in recent times. Major players Dexus and Frasers Property Australia were reported to have also pursued the prized landholding.
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