Weekly Wrap

Fitzroys Weekly Wrap - 6th November 2020

Posted on 06th November 2020

000 Retail 05

52-62 Princes Highway, Beaconsfield
The Beaconsfield Hub retail centre sold for between $8.5 million and $9 million at a circa-6% passing yield, with around 90% occupancy. Fully-leased return is more than $600,000pa net. The 1,883sqm complex has 9 separately-titled tenancies that were offered in one line, and is on a 4,600sqm site with 71 parking spaces and zoned Commercial 1. Current tenants include a nail and beauty salon, Bendigo Bank, 3 hospitality venues, pilates studio, pool shop and a fashion retailer.

Corner Boundary Road and Lake Drive, Dingley Village
Vanity Chic Mirrors paid $3.4 million for the 1,659sqm under-construction showroom, located within HB+B’s Kingston Business Park.

G24, 261 Clarendon Street, South Melbourne
Phone, tablets and computers repairer PhonePhix signed a 5+5-year lease for the 16sqm space within the Clarendon Centre, at $45,000pa. This will be its 5th Melbourne store. Clarendon Property Group is the landlord.

101-103 Palmer Street, Richmond
International gym franchise Crunch Fitness signed a 10-year lease over the 2-level 1,831sqm showroom and warehouse at $360,000pa gross.

Shop 2, 121 Maling Road, Canterbury
Vienna Patisserie Bakery leased the 34sqm shop to open its 2nd store, and will pay $26,000pa for 3 years.

000 Offices 05

1-11 Little Boundary Road, Brooklyn
A local owner occupier paid $562,500 for 2 strata offices within Citinova’s Brooklyn Interchange development.

176 Wellington Parade, East Melbourne
Noble Systems leased the 237sqm level 2 office with views to the MCG for 3 years at $475/sqm. Vantage Property Investments is the owner.

96 Kelletts Road, Rowville
A psychology practice leased the 313sqm office on a 2+2+2+2+2-year lease at $160/sqm net.

000Industrial 05

13/7 Dalton Road, Thomastown
An investor bought the 346sqm property office and warehouse from developer Forte Group for $745,000, at a 5.2% yield. Prime National Care has a new 5+3+3-year lease returning $39,000pa plus outgoings and GST.

27-43 Toll Drive, Altona North
Family-owned transport and logistics company Allied Seafreight and General Distribution signed a 10-year lease for a 16,229sqm warehouse on a 4.88ha site, at around $85/sqm net. Around 5,000sqm of hardstand will be constructed on the site, which is owned by Logos.

13 Marshall Court, Altona
Online homeware wholesaler Urban Products signed a 5-year lease over a 3,960sqm warehouse, within a new development by C3 Construction Group, at around $75-$80/sqm.

74 Raglan Street, Preston
Fit-out contractor AMS Constructions leased the 455sqm older-style brick office, showroom and warehouse at $43,000pa plus GST in a 1+1-year deal.

43 Terracotta Drive, Nunawading
Automotive electrical business Wishart Auto Tech leased the 328sqm office and warehouse for 3 years at $40,000pa net.

000 Development 05

28 Pickett Street, Dandenong
A local developer paid $2 million for the General Residential 1-zoned site, which has a permit for 12 townhouses.

94 Doncaster Road, Balwyn North
The 907sqm site sold to a local developer for $3 million, with approval for a project with 8 apartments.

000 Specialised 05

1A Fitzpatrick Drive, Altona Meadows
The Baby Bells child care centre sold for $3.02 million at a 5.67% yield. The purpose-built centre on a 1,729sqm site is licensed for 75 places and is leased until 2027 with options to 2037, returning $171,286pa net plus GST.

000 Talking Points 05

Church Street, Brighton Retains Blue-Ribbon Status
Melbourne’s perennial top-performing shopping strip, Church Street, Brighton, has retained its place at the top of retailers’ wish lists throughout the COVID period, with spaces at either end of the strip leased on long-term deals.

Fitzroys agents Mark Talbot and Tom Fisher negotiated the latest leases on behalf of respective private investors.

The 81sqm shop at 40C Church Street was leased on a 7-year term at $120,000 plus outgoings and GST to national fashion retailer Flannel. Number 107 was leased to a high- end green grocer on a 7+7-year deal at $110,000 per annum.

“Seven-year leases are huge in this environment,” Talbot said.

“We received interest from a range of specialty retailers, including clothing and footwear tenants, service retailers such as allied health, skin care and beauty tenants, and a range of hospitality operators.

“This demonstrates the blue-ribbon fundamentals of the strip that make it appealing across the retail spectrum.”

Talbot said the high-end green grocer recognised the rare opportunity to secure a Church Street, Brighton property of this size on a corner location and with rear access, while the growing Flannel is looking to bring its new retail outlet, Store Chance into the space.

“Store Chance saw a rare opportunity in the market. Their Albert Park location has been trading really well, and is anticipating a big spring and Christmas period as Melbourne opens back up.

“Their new shop is located in the prime of the street, offering the perfect opportunity to capitalise on the year’s biggest trading period.”

Talbot said retailers continue to see high value in bricks and mortar stores that are located among a strong tenancy mix and within renowned established, affluent catchments.

“Church Street, Brighton is positioned within one of Melbourne’s most prized catchments, boasts a strong mix of national retailers and fashion labels, and highly regarded local operators, and also benefits from constrained supply.

“Retail spaces in Church Street rarely become available and there is a long queue of retailers and operators seeking space, even throughout the COVID period,” he said.

Fisher said Melburnians have been reconnecting with their local strips as many are working from home.

“These long-term deals show the confidence retailers have in shopping and lifestyle throughout Melbourne’s famous retail strips.”

Amazon Expands Melbourne Presence
Amazon has committed to a new distribution centre in Ravenhall worth up to $70 million, which will be the online retailers’ 2nd in Melbourne.

The 37,000sqm facility will have capacity to store 6 million items and will be in built in the Horizon 3023 estate, owned by Dexus and its wholesale property fund managed alongside GIC.

Spanning 127ha, the estate will eventually be home to 400,000sqm of commercial and industrial property worth a combined $500 million. Around 100,000sqm has been leased, with tenants including meal-kit company Hello Fresh, and food manufacturer and distributor Scalzo.

Amazon’s 1st Melbourne facility, which was also its first in Australia, is in Dandenong South.

Fife Capital and DHL Take Former Kaufland Site
Fund manager Fife Capital has acquired the 90,000sqm distribution centre that was to be used by German hypermarket Kaufland in Merrifield, and will lease the facility to logistics group DHL on a 10-year term.

The automated, temperature-controlled facility is on a 28ha site within MAB Corporation’s Merrifield Business Park.

DHL is planning to open 4 new facilities across Melbourne, totalling around 120,000sqm amid the ongoing online retailing boom.

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.