Weekly Wrap

Fitzroys Weekly Wrap - 29th June 2018

Posted on 29th June 2018

Retail Sale, 187 King Street, Melbourne
A Singaporean investor purchased the two-level 275sqm premises of Hanabishi Japanese restaurant for $4.89 million in an off-market deal, which quickly followed the sale of the two-level, 371sqm building at 189 King Street next door for $5.32 million under the hammer.

Retail Sale, 1341 Burke Road, Kew
An owner occupier paid $1.175 million after auction for the vacant shop with a three-bedroom apartment above. The 224sqm building is on a 260sqm site zoned Commercial 1.

Retail Sale, 41-51 Burwood Highway, Burwood
A mainland China purchaser acquired the 1,194sqm site, leased to 24/7 gym Snap Fitness, for $4.6 million, at a 3.48% yield. It has a 458sqm two-level building and traded with a new 5+5+5-year lease returning $160,000pa.

Retail Lease, 9C, 271 Collins Street, Melbourne
Vietnamese group MetaScent has signed a 3+3-year deal over the 66sqm space at $70,000pa net. It will be one of the first DIY fragrance experience offerings in Melbourne.

Office Sale, 120 Moray Street, South Melbourne
A recent renovation saw a $690,000 value uplift in 12 months for the two-level vacant office, which sold for $1.89 million. It has four new partitioned rooms, boardroom and versatile ground floor.

Office Lease, 1/60 Wilson Street, South Yarra
Media and entertainment giant Village Roadshow is moving from its headquarters at the Jam Factory on South Yarra’s Chapel Street to the 500sqm first floor space after leasing the space at $140,000 per annum net. The self-contained office has a part-partitioned and part open-plan layout. 

Office Lease, 2 & 4/1-7 Langhorne Street, Dandenong
The Victorian Aboriginal Child Care Agency has signed a 5.5-year deal with a further five-year term for the recently refurbished 1,085sqm office space, and will pay $284,000pa.

Land/Development Sale, 76 Williams Road, Prahran
Zoned Residential Growth 2, the 975sqm site has an apartment block of five two-bedroom units and sold for $3.6 million, at a unit rate of $760,000/unit and at a 2.7% yield on the short-term income.

Land/Development Sale, 170 Sydney Road, Coburg
The 951 sqm site sold for $3.6 million with approval for a 114-place childcare centre and two retail spaces over the three levels. The plans were lodged late in 2015, with the site having recently been subject to a permit for a six-storey building with 42 apartments and shops.

Specialised Asset Sale, 194-196 Karingal Drive, Frankston
The 1,589sqm corner site has been occupied by healthcare provider Total Care Medical Group for the past 40 years and sold for $5.4 million. Zoned Commercial 1, it has a 614sqm purpose-built facility with a new five-year lease.

Industrial Sale, 11-14 Trade Place, Brooklyn
A local tenant has become an owner occupier after acquiring the warehouse site for $3.65 million. It has two interconnected 3,270sqm warehouses that have been used as one factory for the past 20 years, including office space over two levels, on a 4,700sqm site.

Industrial Lease, 6 Hill Street, Cremorne
Electric car battery repurpose group Relectrify has signed a two-year lease with options for the 290sqm, two-level office and warehouse building at $60,000 net plus GST from a Melbourne-based private investor.

Industrial Lease, 5-7 Corporate Avenue, Rowville
APS Industrial has inked a five-year deal for the 3,800sqm facility, which has a warehouse and 800sqm of office space of two levels, at $90/sqm at plus outgoings and GST.

Key south-east industrial facilities change hands: The industrial and logistics property market continues to attract investors and developers alike. A private investor has paid $14.75 million for a 15,962sqm office and warehouse building in Moorabbin. The 45-55 Fairchild Street property is zoned Commercial 2 and encompasses a 28,890sqm site, and sold with a new five-year lease to global publisher Hinkler Books that brings in nearly $1.099 million pa net.

It is positioned within Parkview Estate, developed by Pellicano Group, which still owns much of the estate.

Further south-east, Biscay Greeting Cards sold off its 7,828sqm office and warehouse facility, on a 1.29ha property at 108 Logis Boulevard in Dandenong’s Logis Eco Industrial Estate, to an owner occupier for $12 million.

The corner site has 73 on-site parking spaces and is a short distance from Eastlink and the Dandenong Bypass.

Prompted by the lack of available development sites in the Logis and Key industrial estates, a local developer has purchased a 15,750sqm site nearby at 44-80 Sinclair Road. Zoned Industrial 1, it has a 5,014sqm facility leased for another three years with no further terms, a 122m frontage, and offers easy access to Eastlink.

Meanwhile, another developer paid $4.7 million to food distribution company PFD Foodservices for its Knoxfield cold storage facility in the eastern suburbs of 9,480sqm at 26 Rushdale Street.

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.