Weekly Wrap

Fitzroys Weekly Wrap - 19th February 2021

Posted on 19th February 2021

000 Offices 05

68 Clarke Street, South Melbourne
Nasdaq-listed Activision, the publisher of hit video games including Call of Duty, Guitar Hero and Skylanders, signed a 5-year lease in a high $500/sqm range. Activision has a corporate office in Sydney, but this will be its first studio in the Pacific region. The space covers an entire floor within developer Hickory’s newly-built office and retail complex on the corner of Chessell Street.

478 Toorak Road, Toorak

Welner Lawyers leased the 142sqm former Henry Bucks space at $85,000pa net.

000 Development 05

198 Beavers Road, Northcote
Sydney developer Metro Homes acquired the 1.25ha Northcote Business Park site on the banks of the Merri Creek. Through its subsidiary Creation Homes, Metro is developing 73 3-storey townhouses on the property. The site was once used as a bus depot and sold off by the Kennett government, and most recently was owned by Nabil Grege, who ran a nut importing and roasting business at the site.

000 Retail 05

2-30S Hummingbird Drive, Botanic Ridge
Sandhurst Retail bought the Botanic Ridge neighbourhood shopping centre for around $14 million prior to construction starting. Located within Peet’s Acacia housing development, the 6,000sqm centre is on a 2.5ha site and will be anchored by a Coles supermarket and Liquorland across 3,770sqm on a 12-year term.

Shop 4 and Shop 6, 517 Flinders Lane, Melbourne

An offshore investor bought 2 ground floor shops in the city for a combined $2,608,713. Shop 4, measuring 31sqm and leased to café Hunters’ Roots on a 5 5-year term, sold for $933,713 at a 4.75% yield. The 61sqm Shop 6 sold for $1.675 million at a 4.65% yield, with a 6 5-year lease to Indian eatery Delhi Streets.

207 and 209 Springvale Road, Springvale

An investor bought the vacant standalone dual-level buildings in one line for $1.432 million. They have a combined 700sqm building area and are on 443sqm of land.

453 Church Street, Richmond

Audio visual retailer Busisoft AV leased the 535sqm, 3-level showroom for 5 years at $220,000pa. The property has a 6-car basement and a car loading bay.

000Industrial 05

30 Steers Street, Sunshine North
An investor bought 2,506sqm site for $1.8 million. It has 2 warehouses of 450sqm and 550sqm respectively and is leased to John H Motors.

Unit 21, 27 Graystone Court, Epping

An investor bought the 220sqm unit for $518,000. It is leased to Poly Services Australia for 3 years.

11 Westside Drive, Laverton North

Sheet metal fabrication firm Abbin Engineering leased the 2,560sqm facility for 5 years at $240,000pa net. The warehouse was built and previously occupied built and previously occupied by owners JH Stephenson & Son.

000 Specialised 05

1 Sparks Avenue, Burwood
A local investor paid $7.11 million for the corner 1,433sqm site, at a 5.39% yield. Childcare centre operator AMIGA Montessori leases the property, which has a 590sqm facility licensed for 73 places, on a new 14-year lease returning $383,250pa plus GST with 10 10 10-year options.

000 Talking Points 05

Hampton Street Set For New Chapter After Generational Sale
The popular Hampton Street shopping strip is set for a new chapter, after neighbouring owners joined together to create and sell a 1,358sqm site in a generational deal.

Fitzroys agents Mark Talbot and Shawn Luo sold 466-476 Hampton Street, located within the Hampton Hill precinct, via an Expressions of Interest campaign.

The site comprised 6 separate shops ranging from 75sqm to 94sqm, some occupied on monthly tenancies, others vacant, and another with a tenancy subject to a development clause.

“This represented an ultra-rare chance to acquire a Melbourne shopping strip site of this size and potential,” Talbot said.

“The owners teamed up to create and offer an unprecedented opportunity to deliver a premium project in the prime of Hampton Street, with the potential to develop a multi-level commercial, residential or mixed-use complex in one of Melbourne’s iconic shopping strips.”

He said the purchaser will make use of the favourable development potential of the site. It offers rear access from both Mills and Willis Streets, and has exceptional frontage nearly 30 metres. Zoned Commercial 1, it offers a highly attractive DD 012 Development Overlay promoting four-storey developments, capturing bay views, and with potential to add further levels.

“The rarity of the offering was reflected in the huge enquiry seen during the campaign, with more than 100 local and offshore buyers showing interest. Clearly, the pandemic hasn’t dented appetite for properties along and around Melbourne’s shopping strips.”

The price was undisclosed, but a very strong result is believed to be achieved on the basis of expectations of $8 million-plus.

“The owners’ decision to amalgamate their sites immediately unlocked the value and potential of the land,” he said.

Talbot said the enquiry and sale result displayed the confidence developers have in the residential market. Melbourne prices have rebounded over the past few months, government incentives and low interest rates have helped push Melbourne unit prices to record highs, according to Domain data, with Hampton among the standout performers.

have helped push Melbourne unit prices to record highs, according to Domain data, with Hampton among the standout performers.

“Hampton attracts a younger demographic from the affluent surrounding bayside suburbs, from Brighton down to Beaumaris, through the growing offering of cafés, restaurants and eateries along Hampton Street, its supermarkets and shopping options, and its beach location,” Talbot said.

“This demographic in particular has embraced first home buyer incentives that have played a key role in the residential market’s recovery.

“This has increased demand for medium and high-density residential projects along and in the immediate vicinity of the strip.”

Luo said highly-accessible locations are currently very popular, and this site proved to be no exception. Hampton train station is close by, while Hampton Street offers ample car parking throughout the strip and the streets around it, and is also connected by multiple bus routes.

“It is positioned close to a number of schools, including St Leonard’s and Haileybury’s Brighton campus, and St Mary’s and Hampton primary schools, is another drawcard for young couples and families,” he said.

“In a period in which working from home is more commonplace, locations within and close to Melbourne’s famous shopping strips that offer hospitality and lifestyle options are particularly important to workers and young professionals.”.

Biomedical Group Buys Suburban Office Building
Biomedical group AXXIN has paid $16.6 million for an Eaglemont office building on the Yarra River that it intends to occupy in the future.

The 3,216sqm building at 677 The Boulevard is on a 9,020sqm corner site and is currently fully leased to social welfare organisation Berry Street Victoria, trading at a 6.36% yield. It last changed hands in 2010 for $11.35 million.

The site is a short drive from the Austin and Mercy hospitals.

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. Terms/Privacy © Copyright 2021 Fitzroys.