Weekly Wrap

Fitzroys Weekly Wrap - 13th July 2018

Posted on 13th July 2018


Retail Sale, 342 Clarendon Street, South Melbourne
Investment firms PodCo and Terraplex sold the 184sqm shop and dwelling property to a local investor for $2.175 million at a 3.8% yield. It is home to café Ginger & White. The property is part of the Emerald Hill Terrace portfolio, which PodCo and Terraplex acquired in 2015 and has subdivided into 15 separately-titled offerings.

Retail Sale, 440 Hampton Street, Hampton
An investor purchased the Australia Post site for $2.27 million under the hammer, at a 4.4% yield and with a new five-year lease returning $100,000pa. The property is the 180sqm ground-floor component of a three-storey building, with a 10m frontage to Hampton Street.

Retail Lease, Shop 6, 288 Flinders Lane, Melbourne
Australian fashion identity Tiffany Treloar has signed a three-year lease with a three-year option for the 149sqm space from private owners, at around $190,000pa gross.

Retail Lease, 386 Smith Street, Collingwood
Have It Made Furniture signed a three-year lease with options for the 241sqm property, at $90,000pa net.

Retail Lease, 346 Brunswick Street, Fitzroy
A hospitality operator has leased the newly refurbished ground floor space of 90sqm at $76,529pa, at around $850/sqm.

Retail Lease, 1027 Mount Alexander Road, Essendon
Loscar Barbers cut a seven-year deal for the new 64sqm space at $594/sqm.

Office Sale, Level 2, 501 La Trobe Street, Melbourne
An owner occupier paid $2.38 million for the vacant whole office floor of 285sqm, which has partitioned offices, conference rooms and open plan offices, and looks over Flagstaff Gardens.

Office Lease, 161 Collins Street, Melbourne
Treasury Wine Estates will move their headquarters to Pembroke’s T&G Building after agreeing to lease 5,200sqm across levels eight and nine.

Land/Development Sale, 29-31 Manningham Road, Bullen
The corner site of 1,239sqm sold at auction for $3.225 million, and has approval for a project of eight three and four-bedroom townhouses.

Land/Development Sale, 222 Burke Road, Glen Iris
The 1,019sqm site sold to a local developer for $5.5 million, with a permit for a high-end 16-apartment project, 14 months after trading for $4.45 million. It sold at a unit rate of $343,750/unit.

Industrial Sale, 15 Dalton Road, Thomastown
Approved for a service station development that includes a convenience store and 10-unit office and warehouse development, the vacant 1.492-hectare property traded for $7.08 million.

Industrial Sale, 85 Fulton Drive, Derrimut
Efxpress sold off the Industrial 2-zoned facility for $5.1 million. It has a 2,817sqm warehouse and 450sqm of office space on a 1.07ha site.

Industrial Sale, 16-18 Croydon Road, Croydon
An offshore Chinese investor paid $4.6 million for the two-level, 1628sqm office building, which has eight individual strata units that sold in one line. Zoned Commercial 1, the 2,012sqm site has 40 on-site parking spaces. It currently has eight tenancies and sold with an income of $271,685pa net, and can return more than $359,000 fully leased.

Elizabeth Street evolution on track: Elizabeth Street’s southern precinct has continued its transformation, prompted further by the Metro Rail works along nearby Swanston Street and Melbourne City Council plans for conversion into a pedestrian mall. 

Office supply retailer Officeworks, part of ASX-listed Wesfarmers, has renewed its lease over 107 Elizabeth Street, near the busy intersection with Collins Street, on a 10-year deal negotiated by Fitzroys Director, Rick Berry as competition for spaces in the precinct heats up. 

Officeworks occupies around 350sqm in 107 Elizabeth Street and a further 500sqm across two levels in the adjacent heritage 343 Little Collins Street building, and will embark on a refurbishment of the store. 
The owner of 107 Elizabeth Street is restoring the heritage façade of the building to its former glory and upgrading the 1,600sqm of upper level space to provide high quality boutique office accommodation to meet the growing demand for bespoke office space in the CBD. 

“The calibre of tenant and quality of retail and office fit-outs is progressively improving in Elizabeth Street,” Berry said. 

“Businesses are moving to ensure they offer the best retail experience, looking to capitalise on the strong pedestrian traffic as competition in the area is enhanced, while the office conversions remain popular with businesses looking for trendy work spaces.”

The pool of prospective retail tenants looking for space along the stretch from Flinders Street station up to Bourke Street has grown, with some business impacted by the $11 billion Metro Train tunnel project along Swanston Street.

Meanwhile, Melbourne City Council is pressing ahead with its $2.2 million plans do pedestrianize the area between Flinders Street and Flinders Lane, having successfully trialled a “pop-up park” over summer. Works will begin in early 2019 and include street furniture, bluestone paving and the introduction of more greenery. There is potential for that area to increase northwards to Bourke Street in future. 

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.