Retail Sale, 785 High Street, Thornbury
The 225sqm corner site situated in Thornbury’s lifestyle and retail precinct sold under the hammer for $1,805,000 on a sharp yield of 2.4%. The property comprises a combined shop and dwelling with a total building area of 190sqm and returning $44,000pa net approx.
Retail Sale, 427 Chapel Street, South Yarra
The corner site has a 335sqm building and sold for more than $4 million, with a new five-year net lease to Bess Bar returning $190,000 pa net plus GST and outgoings.
Retail Sale, 3 & 3a Shannon Mall, Frankston
Two titles across 631sqm were offered with a potentially fully leased income of $370,000, including a lease to the Bank of Melbourne, and sold for $5.6 million.
Retail Sale, 4 & 4A, 42 Lochiel Avenue, Mount Martha
Part of a landmark corner building San Marco by the Sea, the combined 188sqm ground-level property sold for $3.75 million at a 4.21% combined yield. Shop 4 of 73 sqm is leased to Bonaccorde on a long-term deal returning $89,720pa plus outgoings and GST, and the 115sqm Shop 4A has a 5x5x5x5-year lease to Mr Curtis bringing $68,334pa plus outgoigns and GST.
Retail Sale, 223 High Street, Ashburton
The 180sqm florist, operating as Nina’s Fresh Flowers on a five-year deal, is on a 208sqm property that sold for the first time in more than 50 years for $3.115 million, at a 2.57% yield.
Retail Sale, Shop 2, 712 Station Street, Box Hill
Private investors traded the 138sqm retail space, leased to dessert restaurant Moritata, for $2.1 million. It currently returns $113,300 per annum net plus outgoings and GST.
Retail Sale, 129 Were Street, Brighton
The 110sqm hair salon is on a 260sqm site and sold for $1.58 million under the hammer at a 3.25% yield, with a 4+4-year lease to Harpo Hair.
Retail Lease, 6 Smith Street, Collingwood
Memorabilia store Magical Melbourne Pty Ltd has signed a five-year deal at $60,000pa plus outgoings and GST for the city fringe space, to tie in with the Harry Potter and the Cursed Child theatre showing at the Princess Theatre in 2019.
Specialised Asset Sale, 1 Sparks Avenue, Burwood
Zoned General Residential 3, the 1,433 sqm site sold to a local buyer for $2.9 million, with a permit for a 73-place childcare centre, at a land rate of $2,024/sqm.
Office Lease, 1100 Pascoe Vale Road, Broadmeadows
The Northern Community Legal Centre has agreed to a 3+3-year lease over the 340sqm top-level space, at $86,000pa gross.
Office Lease, Level 8, 432 St Kilda Road, Melbourne
ASX-listed satellite and communications tech group Speedcast International has leased the 330sqm space from Standard Life Aberdeen on a five-year deal at circa $350/sqm.
Industrial Sale, 1865 Frankston Flinders Road, Hastings
The 3,716 sqm site sold for $1.07 million. It has a 585 sqm warehouse and six offices and reception space, and a new two-year lease bringing $60,799pa.
Industrial Sale, 81-85 Cooper Street, Campbellfield
Genesis Developments paid $4.2 million for the Industrial 1-zoned 18,585sqm site, with intentions for a multi-unit project on the property.
Industrial Lease, 34 Indian Drive, Keysborough
GP Plumbing Group signed a 3x3-year deal for the 929 sqm building, which has a 661sqm warehouse and 268sqm of office space over two levels. It will pay a net face rent of $103/sqm. The site also has 13 on-site parking spaces.
Offshore Investor Takes CBD Corner Site: An Asian-based purchased has paid around $72 million for the 12-storey B-grade office building at 601 Bourke Street, on the corner of King Street.
The asset was sold at a circa-5% yield, with occupants including Toshiba, Charles Sturt University, Pragmatic Education Group, Hentys Lawyers, Swire Shipping Agencies and H J & K Industrial Consultants.
Pragmatic Education Group was the vendor, according to The Age, having paid $42 million for the building in 2015 to Coweley Bourke, which was representing a European fund. The uplift reflects the ongoing demand for CBD commercial investments.
The building is on a 901sqm site and has formerly gone by the names Allianz Centre and Forestry House.
Suburban Commercial Assets Changing Hands Too: A two-level commercial building of 4,272sqm in Mitcham, anchored by a Fernwood gym, has sold for $12.77 million in the latest major Melbourne suburban deal through the east.
The 602 Whitehorse Road property is on a 2,480sqm site with 71 basement parking spaces. The building has 13 individual suites, and an 11-year lease to Fernwood until 2027 plus options. Other tenants include the office of local federal MP Michael Sukkar, and service and hospitality operators. It traded at a net passing yield of 6.1%.
Recent weeks saw a Vantage Property Investments syndicate sell off two office buildings in respective deals; 18-20 Prospect Street, Box Hill sold for $14.72 million, and 271 Wellington Road in Mulgrave for $9.75 million.
Investors Shopping For Supermarkets: The freestanding full-line Coles supermarket at 434 Maroondah Highway has traded for $8.505 million, at a 5.25% yield. The 1,668sqm site has a 15-year lease plus options until 2041.
It follows the sale of a Woolworths at 10-20 Geum Street in the northern suburb of Hadfield to a local investor for $11.75 million, at a 3.5% yield. The 2,100sqm supermarket includes a BWS bottle shop and is on a 5,600sqm site.
In March, the 2,850sqm Coles supermarket in Clayton sold to a private investor before auction for $17.115 million at a 2.58% yield.
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.