Retail Sale, 137-139 Upper Heidelberg Road, Ivanhoe
This investment property sold under the hammer for a strip record of $5.225 million. Offered for the first time in more than 60 years, the two-storey building of 505sqm has two ground-floor shops and a first-floor gym and sold at a 4.1% yield, and land rate of $20,000/sqm.
Retail Sale, 671-677 Point Nepean Road, McCrae
A local investor secured the three shops over two titles for $6 million, at a 3.6% yield. The 2,229sqm beachfront site has three recently-renewed five-year leases to Kobi Jacks, Alatonero and café Merchant Maker.
Retail Sale, 458 Centre Road, Bentleigh
The 130sqm premises of long-term tenant Elfresco Café sold under the hammer for $2.78 million, at a circa 4% yield with a new 7-year lease.
Retail Sale, 326 & 328 Queens Parade, Fitzroy North
Formerly a Commonwealth Bank branch, the vacant 408sqm site with 296sqm building sold for $2.8 million.
Retail Sale, Shop 3, 601 Little Collins Street, Melbourne
A Chinese buyer paid $1.2 million for the 30sqm premises of Hugo’s Expresso, which has a 10-year lease ending in 2029 and two five-year options, returning $62,053pa with 5% annual increases.
Retail Sale, G2, 10 Yarra Street, South Yarra
The 55sqm space sold for $550,000, at a 5.8% yield, with a lease to builder and developer Miravor Property Group. It is on the ground floor of a seven-level office building.
Retail Lease, 646 Burwood Road, Hawthorn East
Décor and accessories group Zoobibi has inked a 5+5-year deal at $225,000pa net for a showroom space within the 609 sqm commercial building.
Retail Lease, Shop 2, 40 Market Street, Melbourne
Michael’s Shoe Repair signed a five-year deal plus option for the 100sqm space at $75,000pa gross. The building is owned by MTAA Superannuation.
Land/Development Sale, 14-16 Williamson Road, Maribyrnong
The 2,114 sqm development site within the Highpoint Activity Centre sold for $5 million, at a land rate of $2,360/sqm. Zoned Mixed Use, it has a design and development overlay that allows a preferred development height of up to 17 levels.
Land/Development Sale, 150-152 Rosebank Avenue, Clayton
The 503sqm site, with approved plans for a three-level development with retail space and seven two-bedroom apartments, sold to a neighbouring property owner for $1.39 million at auction, at a 3% yield. It currently has a building area of 230sqm, and leases to a burger shop and a convenience store.
Office Sale, 306 Little Collins Street, Melbourne
Mobile Monster is moving to the CBD after buying the whole floor 320sqm strata office for $2.58 million from a not-for-profit organisation.
Office Lease, 651 Victoria Street, Abbotsford
Salta Properties signed a three-year deal at $330/sqm for the office and display space, after announcing a mixed-use development at Victoria Gardens shopping centre across the road, which will include build-to-rent space.
Office Lease, 233 Punt Road, Richmond
Hammer Technologies nailed down a lease over 780sqm in Brandi & Co House, across from the MCG at $300,000pa plus GST.
Office Lease, 45 William Street, Melbourne
BRI Ferrier, Trility and the Victorian Greens have signed respective five-year leases in the building from Henkell Brothers, at around $350/sqm.
Industrial Sale, 64 & 66 Tope Street, South Melbourne
The vacant adjoining warehouses sold for $3.46 million under the hammer, at a land rate of $12,300/sqm. Zoned Commercial 2, number 64 is on a 114sqm site with rear access, and number 66 covers 166sqm and has three street frontages.
Industrial Lease, Unit 2, 75 Rebecca Drive, Deer Park
Deer Park Office Fit-Out Company will use the 630sqm property for overflow storage after signing a two-year lease at $44,000pa.
Investors Toy With Childcare Assets: A Chinese investor acquired a Bentleigh East childcare centre 359-361 Chesterville Road for $5.6 million, at a 5.85% yield. The 1,184sqm site has a 748sqm building licensed for 82 places, and has a 20-year lease with two further 10-year options to ASX-listed Think Child Care.
The deal marks the latest in a recent string of key sales in the sector across Melbourne’s south-east and eastern suburbs. The 948sqm part two-level building at 720 High Street in Kew East, leased to Guardian Early Learning on a 20-year deal with two 10-year options, has a licence for 68 places and sold to a Chinese buyer for $6.5 million, at a 5.22% yield.
A brand-new childcare centre at 1066 in Oakleigh South changed hands last month for $9.5 million. A private buyer acquired the 3,291 sqm corner site, which has a 1,002sqm building and 988sqm playing area, with a lease until 2042 returning around $600,000 per annum and licence for 139 places.
Shopping Centres Frenzy: Mornington Village shopping centre has become the latest major Melbourne retail asset to change hands, with an accounting firm selling the Woolworths and Aldi-anchored 7,693 sqm neighbourhood centre for $39.38 million, at a 5.26% yield, four years after acquiring it for $25.8 million.
Last week, Woolworths bought Mordialloc Plaza for $41 million on a 4.39% yield, which is anchored by one of its supermarkets. That followed the sales of Maroondah Village in Croydon North for $18.8 million at 4.6%, while Stockland sold its Highlands shopping centre for $43 million.
Meanwhile, Charter Hall’s $117 million purchase of the 33,510 sqm Gateway Plaza shopping centre in Geelong’s eastern suburb of Leopold marks the third key retail deal in the region this year. Gateway Plaza features a Kmart, Coles, Bunnings and Aldi, and traded at a 6.65% fully leased yield.
In May, a private investor acquired the Woolworths-anchored Bellarine Village in Newcombe for $36.5 million, at a 6.3% yield, while Coles Group Property Development Ltd sold its Torquay Village shopping centre earlier this year for $35 million, at an initial yield of 5.89%.
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.