Weekly Wrap

Fitzroys Weekly Wrap - 7th September 2018

Posted on 07th September 2018

Retail Sale, 349 Elizabeth Street, Melbourne
A local investor paid $6.8 million for the 237sqm two-level building, at a 2.67% yield. Located opposite Melbourne Central, it is leased to Isshin Ramen Bar and MMA Fight Store.

Retail Sale, 100-102 Main Street, Mornington
A Singaporean investor purchased the ANZ bank branch for $4.46 million, at a 3.7% yield. The two-level 364sqm building is on a 460sqm dual-fronted site adjacent to Mornington Central.

Retail Sale, 125 Dundas Place, Albert Park
A local private investor paid $3.855 million for the Mecca Cosmetica premises, offered to the market for the first time in 50 years. The 141sqm shop is on a 218sqm site and traded with a new 5+5-year deal until 2027, returning $107,687pa, with the sale price reflecting a 2.7% yield.

Retail Sale, 54-56 Bridge Road, Richmond
A local investor paid $3.26 million for the adjoining commercial buildings. Zoned Commercial 1, the offering had a combined building area of 360sqm on 516sqm of land, with two ground-floor shops, a first-floor office and separate apartment, with a combined income of $105,313pa.

Retail Sale, 96 Glenferrie Road, Malvern
The home of local icon Fleischer Cakes sold for $2.9 million at a 3.48% yield. The 215sqm site has a 250sqm double-storey building with rear access and off-street parking, and returns $101,187pa. Fleischer Cakes has been at the site since 1938.

Retail Sale, 267 Camberwell Road, Camberwell
Zoned Commercial 1, the vacant 250sqm property has three street frontages and sold for $1.67 million, after being held in the same family for 45 years.

Retail Sale, 827 Glen Huntly Road, Caulfield
An investor picked up the shop and dwelling for $975,000, at a 4.9% yield with a short-term lease on the ground floor to a fish and chip shop. The two-level building is on a 178sqm site zoned Commercial 1.

Retail Sale, 917 High Street, Thornbury
An owner occupier picked up the 240sqm two-level shop and dwelling for $1.255 million. On a 224sqm site with rear access, it sold for with a short-term lease in place, having been offered for sale for the first time in more than 50 years.

Retail Sale, 325 High Street, Kew
The 79sqm strata-titled shop, leased to Denture Health on a four-year deal, sold for $880,000 at a 4.75% yield.

Office Sale, 181-183 King Street, Melbourne
The four-level freestanding building of 608sqm, known as Aries House, sold for $5.961 million. On a 221sqm site, it has ground-floor retail, on-site parking and rear lane access, and sold fully leased to multiple tenants with a combined return of $147,092pa, and at a 2.22% yield.

Office Sale, Level 3, 313 Little Collins Street, Melbourne
The 154sqm whole office floor within the eight-level building sold for $1.1 million at a 4.15% yield, with a 5+5-year lease from October 2017.

Office Sale, Suite 302, 434 St Kilda Road, Melbourne
An owner occupier paid $320,000 for the 105sqm vacant corner suite. The vendor was the previous owner occupier.

Land/Development Sale, 640 Sydney Road, Coburg
An IT company outlaid $2.5 million for the 900sqm corner site, looking to develop an office building for its new home. Zoned Activity Centre 1, the site currently has an 827sqm building and has development potential of up to five storeys.

Specialised Asset Sale, 224-226 & 228-232 Caroline Springs Boulevard, Caroline Springs
A local investor paid $12.5 million for the 1,454sqm medical centre on a 3,135sqm site with 42 car parks, at a 4.88% yield. It has five tenants and is zoned Comprehensive Development.

Industrial Sale, 1 West Park Drive, Derrimut
ASX-listed Industria REIT picked up the 10,078sqm facility, leased to asset and infrastructure designers and builders Downer Group, for $10.575 million at an initial yield of 6.6%. The site has 160 parking spaces.

Industrial Sale, 154-158 Bernard Street, Cheltenham

The 3,127sqm facility sold for $4.1 million with a 5+5-year lease to P.H.D. Import and Export Pty Ltd from February 2014, currently returning $237,523pa net. It has a clear span warehouse with 315sqm of first floor office space and 33 on-site parking spaces.

Industrial Sale, Unit 7/45-53 Duerdin Street, Notting Hill
The brand-new office and warehouse facility of German-owned industrial machinery group Vitronic sold for $2.73 million at a 5.49% yield. It has a two-level office component of 575sqm, 208sqm warehouse and 17 on-site parks, and changed hands with a 5+3+3-year lease.

Industrial Lease, 93 Cubitt Street, Cremorne
FoxFit Fitness Club inked a six-year lease over the 300sqm warehouse and showroom space at $157,000pa net.

Mirvac opts for new plans French icon’s design for commercial CBD play: Listed diversified group Mirvac will add another commercial tower to the CBD’s west after acquiring the Melbourne headquarters of the Australian Federal Police, despite the 383 La Trobe Street property having approvel for a residential and hotel tower designed by iconic French architect Jean Nouvel.

Mirvac paid $122 million to Sterling Global for the site, which the vendor had bought for $70.7 million in July 2015. Sterling obtained the permit for the Jean Nouvel-designed building of 488 one, two and three-bedroom apartments and 98 hotel rooms, which would have a multi-coloured and reflective façade.

Currently, the 2,845sqm site has a seven-level B-grade office building of 10,200sqm, fully leased to the AFP which plans to vacate soon. Mirvac plans to develop a 40,000sqm office tower on the property.

Nearby, the future Victoria Police headquarters are under construction at 311 Spencer Street. Mirvac already has major commercial projects down on the western end of Collins Street that include the 26,000sqm 664 Collins Street and the 40-storey, 58,000sqm Olderfleet development at 477 Collins Street, just metres from Cbus Property’s $1.25 billion dual-tower, mixed-use Collins Arch project at 447 Collins Street, which will have 49,000sqm of office space, 205 apartments and 294 hotel rooms.

Lendlease is currently building its $2.5 billion seven-tower Melbourne Quarter project across 2.5 hectares on the Docklands fringe.

Box Hill still dazzling developers: Adjoining Box Hill sites at 941-945 and 947 Whitehorse Road have sold for $13.3 million, demonstrating the enduring attraction developers have to the eastern suburbs’ satellite city.

Zoned Commercial 1, the 917sqm property currently has two restaurants and a Chinese medicine practitioner, with a frontage of 20m and and redevelopment potential of up to 12 levels.

Meanwhile, the corner site of 1,460sqm at 716-718 Station Street nearby also changed hands, picked up by a local developer for $6.8 million. It has a medical clinic building with space for six practitioners. Zoned Residential Growth 3, it is expected to make way for a retail and apartment complex of up to five stories.

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.