Fitzroys Weekly Wrap - 6th July 2018

Posted on 06th July 2018

Retail Sale, 277-279 Centre Road, Bentleigh
A Melbourne developer purchased the 1,564sqm site from the Pellicano family for $9.75 million. It comprises a two-storey 1,276sqm commercial building that is 90% leased to nine tenants currently returning $267,000pa, with a 10-year average occupancy per tenant. Zoned Commercial 1, it has a permit for a mixed-use development of 52 apartments and two ground-floor retail spaces.

Retail Sale, 792 Glenferrie Road, Hawthorn
The single-level shop of 82sqm on a 167sqm site sold for $2,051,000 at a 3.51% yield with a short-term income of $72,000pa net.

Retail Sale, 742 Burke Road, Camberwell
The premises of Coffee Max sold for $1.65 million, at a 3.45% yield with a five-year lease to the café. The site covers 188sqm.

Retail Lease, 677 Glenferrie Rd, Hawthorn
Axil Coffee Roasters will open its second Hawthorn café at the front of the Lido Cinemas complex, after leasing the 40sqm space at $65,000pa net.

Retail Lease, 13 Degraves Street, Melbourne
Spanish doughnuts café El Churro leased the 63sqm space at $185,000pa.

Retail Lease, 271 Little Collins Street, Melbourne
California-based footwear label TOMS Shoes will pay $230,000pa for the two-level building of 113sqm, between T2 and the Presgrave Building.

Land/Development Sale, 37 Paxton Street, Malvern East
Sold for the second time within a year, the 780sqm site changed hands at auction for $3.015 million after trading for $2.7 million last August. Currently a block of five flats, it sold with a permit for 10 high-end apartments.

Land/Development Sale, 285-287 Inkerman Street and 3, 5, 7 and 7A Nelson Street, Balaclava
A local private developer paid a reported circa-$9.5 million for the 2,318sqm site, which has one dwelling and five terrace houses, with short-term income.

Specialised Asset Sale, Unit 19-20/201 Wellington Parade South, East Melbourne
An investor paid $1.95 million at a 5.3% yield for the Jolimont Endoscopy Centre premises. It has a 157sqm building with six parking spaces, and returns $104,000pa plus GST.

Office Lease, 432 St Kilda Road, Melbourne
Toyota Motor Corporation Australia leased 1,165sqm of office space over level four and part of level eight, vacated by Macquarie Leasing one year ago. Speedcast recently signed a deal in the building, also on part of level eight, at circa $350/sqm.

Office Lease, 1183 Toorak Road, Camberwell
Loyalty Corp is leaving its current premises for the upgraded office across the road, and will pay $340/sqm net for the 624sqm space within the two-level commercial building, which includes Relationships Victoria among its tenants. Co-Invest is the landlord.

Industrial Sale, 41-43 William Angliss Drive, Laverton North
The 8,000sqm site within the William Angliss Estate has a 4,067sqm facility with a high clearance warehouse and two levels of office space, and sold to an owner occupier for $3.8 million.

Industrial Sale, 2/629 Canterbury Road, Surrey Hills
An owner occupier paid $600,000 for the 112sqm ground floor strata unit, currently a shell, to K7 Developments. It is within the Canterbury Hill development.

Hungry Jack’s bites into CBD’s north for new flagship: Fast food giant Hungry Jack’s has leased a 500sqm ground floor space at 260 La Trobe Street, on the busy corner of Elizabeth Street, for its new CBD flagship site.

Fitzroys’ Terence Yeh and Alex Shum negotiated the 15-year lease within the A-C Building at more than $700,000pa gross on behalf of Landream

Shum said the space has a high-exposure 50-metre frontage to one the CBD’s busiest corners, and offered a rare, strategically positioned opportunity among high-density developments, with an estimated 10,000 apartments being constructed within close proximity.

The property neighbours UEM Sunrise’s Aurora Melbourne Central development of almost 1,200 apartments over 92 storeys, and is close to Melbourne Central, Queen Victoria Market, RMIT University, Melbourne University, national banks and renowned eateries.

Yeh said the transformation of Queen Victoria Market and growing student accommodation sector had driven the retail change in the northern end of the CBD. Enquiry ranged from major fast food operators, hospitality operators, convenience stores, chain retailers, and specialty groups, with among those a number of Asian-based businesses looking to tap into the growing student population.

Nearby student accommodation projects include Singaporean group Wee Hur’s 300-unit development at 185 A’Beckett Street, and Scape Student Living’s 61-level, 800-bed tower at 97 Franklin Street. On the CBD’s northern fringe, Scape has also just purchased the 558-566 Swanston Street site with a permit for a 12-storey, 159-apartment tower, and will soon begin construction on its 650-bed 557 Swanston Street development on the former CUB site.

Logos banks on e-commerce: Developer Logos has paid around $28 million for one of the last remaining large, industrial-zoned sites in Melbourne’s west. It intends to develop a logistics estate with a gross lettable area of 160,000sqm on the 27.5ha site at 285 Palmers Road in Truganina, with a potential end value of $250 million.
It is looking to capitalise on the growing demand for warehousing and logistics space as the boom in e-commerce reshapes the retail sector.

Preston complex lands major Melbourne metro deal: Hong Kong-based Gaw Capital Partners has splashed out $157 million for the Bell City complex in Preston, marking one of the largest commercial asset transactions in metropolitan Melbourne in recent times.

The 24,214sqm site comprises six buildings, including two hotel towers operated by Mantra Group, a conference building, a restaurant and conference building, commercial building, and student accommodation block.

In total, there are 844 accommodation rooms, six levels of office space, 15 conference and function rooms, two restaurants and a café, retail spaces and 652 parking spaces

It is the former site of the Preston and Northcote Community Hospital, which operated on the site from 1960 until 1998.

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.

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