Weekly Wrap

Fitzroys Weekly Wrap - 11th May 2018

Posted on 11th May 2018

Brusst

Retail Sale, 1033 High Street, Armadale
A local investor paid $2.835 million for the home of Chris and Rebecca Judd’s Jaggad clothing business, which also has a first-floor commercial office and second level penthouse. The building has an area of 345 sqm and returns a combined $141,800pa.

Office Sale, 73 Kooyong Road, Caulfield North
A local group paid $4.825 million for the three-level 664sqm office building, leased to the Precision Brain, Spine and Pain Centre, as its first medical asset. 

Office Lease, 3 Bowen Crescent, Melbourne
The 11-level building on the edge of the St Kilda Road precinct has welcomed two new tenants. Drive.com.au has signed a three-year deal over 250sqm at $72,000pa, while Rincovitch Engineering has leased 445sqm over right years at $125,000pa.

Office Lease, Level 2, 51 Stephenson Street, Cremorne
Hospitality software firm Redcate will pay in the vicinity of $450/sqm net for the 400sqm office space after signing a six-year deal.

Land/Development Sale, 88 Kerr Street, Fitzroy 
AVI, formerly Australian Volunteers International, sold the L-shaped 1,197sqm site to a local developer for $7.26 million. It is zoned Mixed Use and was offered with vacant possession, and is next to the1,059sqm 71-75 Argyle Street site that AVI sold to Piccolo Development two years ago for $7.8 million.

Land/Development Sale, 1308-1310 Toorak Road, Camberwell
The 1,279 sqm site sold for $3.96 million, with a permit for a boutique project of 20 large apartments averaging 76 sqm, and a frontage of 35m to Toorak Road.

Land/Development Sale, 235 Grange Road, Ormond
The vacant site of 707sqm sold for $1.7 million with approval for a seven-townhouse development, at a land rate of $2,405/sqm and unit rate of $242,857/unit.

Industrial Lease, 891 Wellington Road, Rowville
Plaster Group has inked a five-year deal over the 4,060sqm warehouse facility, which includes 1,000 sqm of office space over two levels, at more than $300,000pa plus outgoings and GST.

Talking points

Nearly $8 billion tipped into Victorian infrastructure projects: This week’s Federal Budget confirmed the Government’s recent announcements that it would put $5 billion towards the Melbourne Airport rail project, as well as $1.75 billion for the North West Link road, and $475 million for the Monash University rail link.

Victorian projects account for almost a third of the $24.5 billion infrastructure budget.

A further $140 million has but put forward to urban congestion projects in the state, with a focus on Melbourne’s eastern suburbs and in addition to $155 million already committed, while the 26-kilometre North West Link project will include new tunnels and lanes on the Eastern Freeway. It will begin at Springvale Road in Nunawading and connect the Eastern Freeway to the M80 Ring Road at Greensborough

The State and Federal Governments have differing visions for the Monash Uni rail link, with the State favouring a tram, or light rail line, and the Federal Government a new train line. Stage 1 of the proposed route runs from the Caulfield station precinct, where Monash Uni’s Caulfield campus is, through Chadstone and onto Monash Uni Clayton, and stage 2 would run on through Waverley Park and to Rowville.

Further south, the electrification of the rail line between Frankston and Baxter in the south-east has received $225 million.

Meanwhile, $20 million put towards bolstering Avalon Airport is part of plans to make it an international destination and take its passenger numbers to 400,000 per year.

Values rise further in popular Cremorne: A Sydney developer has paid $23 million for an amalgamated site in the inner-city pocket of Cremorne, which is undergoing a development boom as it attracts creative and tech office tenants

The 1,750 sqm commercial site at 116-124 Balmain Street has two commercial buildings, next door to ICON Development’s 36-metre high, eight-level retail and office building on the corner of Church Street, and was offered by adjoining landlords with a development scheme for a nine-storey project.
Number 118 had been acquired for $4.9 million in 2006 and 122-124 for $1.5 million three years earlier. It has just traded at a 2.8% yield with leases still to run over its two buildings.

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.