Weekly Wrap

Fitzroys Weekly Wrap - 17th August 2018

Posted on 17th August 2018

Retail Sale, 350-352 Clarendon Street and 61-63 Emerald Place, South Melbourne
A local investor paid $3.91 million for the two adjoining Victorian shopfronts in the Emerald Hill precinct, at a 4.17% net yield. The 340sqm site has a two-storey building of 455sqm with two retail spaces and four apartments, with a 12-metre frontage.

Retail Sale, 69 Glenferrie Road, Malvern
The double-storey Victorian shopfront sold for $1.85 million via private sale, with leases to three tenants that bring a combined $79,017pa.

Retail Sale, 65 Hamilton Place, Mount Waverley
The 135sqm premises of Vietnamese bakery Katrina Cakes & Coffee sold for $1.66 million, at a 3.1% yield with a lease until 2023, to a buyer that may redevelop over the long-term.

Retail Sale, 103 Gardenvale Road, Gardenvale
The two-level corner building of 300sqm has ground floor retail and showroom space and a first-floor apartment. It sold for $1.635 million with future redevelopment potential.

Retail Sale, 855 High Street, Armadale
Offered for the first time in more than 30 years, the 70sqm building on a 127sqm site sold at auction for $1.25 million to a family business, having been tenanted by long-term tenants Speedgraphic Printers.

Retail Lease, 377 Little Collins Street, Melbourne
Pentolina Pasta Bar inked a five-year lease over a 110sqm space at the base of the building, at $126,000pa.

Retail Lease, Shop 2, 96-102 Greville Street, Prahran
Pizza Hub has signed a five-year lease with a five-year option for its newest site, at $60,000pa net.

Retail Lease, 30 Garden Street, South Yarra
The former fitness studio of 330sqm will get a makeover after Gorgeous Cosmetics inked a lease at $85,000pa.

Office Sale, 9-17 Raglan Street, South Melbourne
An offshore investor has paid $14 million for the 1,915sqm four-level building in an off-market deal, after the vendors paid $9.125 million for the asset just two years ago. On an 835sqm site, it has 29 on-site parking spaces and traded with partial vacancy, at a passing yield of 3.4%

Office Lease, Suite 10, 150 Chestnut Street, Richmond
Advertising firm Rhubarb Creative leased 150sqm in an off market deal at $50,000pa, moving from another location in Richmond.

Office Lease, 372 Wellington Road, Mulgrave
Xtreme Productivity signed a lease of $41,700pa net over the 150sqm fully-fitted ground floor space, offered with on-site car parking.

Industrial Sale, 6A Wilson Street, South Yarra
The office and warehouse property sold for $2.161 million with development upside. Zoned Activity Centre, the 203sqm site has a 173sqm building and is leased until November 2019, returning $39,520pa.

Industrial Sale, 17 McDonald Road, Brooklyn
A private Melbourne investor picked up the office and warehouse facility occupied by global waste management giant Veolia for $3.525 million at auction, at a 5.36% yield. The 2,366sqm site has a 1,104sqm building and returns $189,019 on a brand-new 15-year net lease.

Industrial Lease, 3/189-195 Discovery Road, Dandenong South
Sokol Furniture assigned its lease on an 8,650sqm warehouse to a logistics company moving from smaller premises Noble Park on a 2.5-year deal at $85p/sqm net.

Asian investors pick up shopping centres: Two Woolworths supermarkets in Melbourne’s eastern suburbs have sold in separate deals for a combined total of almost $33.3 million.

The Nossbaum family divested the Burwood East Woolworths at 42-50 Burwood Highway, which has a 3,400 sqm supermarket and a BWS liquor store on a 1.51ha site, as well as 394 parking spaces. It sold for $18.17 million, at a 4.57% yield, with a renewed net lease to Woolworths that returns $832,000pa.

Private investors offloaded the Scoresby Woolworths at 1381-1387 Ferntree Gully Road for $15.12 million at a 4.5% yield. The 6,977sqm property is leased to Woolworths for 20 years until 2030, with options, and brings in $673,000pa.

Former BMW dealership could make way for Australia’s tallest tower: Malaysian group Beulah International has revealed the winner of a competition it ran to design plans for its 6,061sqm 58 Southbank Boulevard site on Melbourne’s city fringe, which it acquired from BMW late last year for $101,088,888.

From six finalists it selected the dual-tower concept titled “Green Spine”, by Dutch firm UNStudio and locals Cox Architecture, which would soar 356.2m high and become Melbourne’s and Australia’s tallest building by some way.

The towers are to have glass frontages from their base that gradually give way to green frontages as they appear to twist. There would be a publicly accessible future botanic garden at the top of the larger tower, and the second building at 252.2m high will comprise hotel and office space.

Plans have not yet been submitted, and negotiations with the state planning minister would need to consider flight paths and associated height restrictions. Part of the site will be retained by BMW.

The tower would be nestled among Melbourne’s current tallest buildings, including Eureka Tower, at 297m, and the under-construction Australia 108, which will supersede Eureka when it tops out at 319m. Australia 108 will be Australia’s tallest building by roof height, while the spire of Q1 on the Gold Coast takes it to number by full height, at 322.5m, although its roof height is 245m.

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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