Weekly Wrap

Fitzroys Weekly Wrap - 14th September 2018

Posted on 14th September 2018

Retail Sale, 929-933 High Street, Armadale

The 818sqm landbank sold for $6.3 million. Zoned Commercial 1, the site included two buildings leased to separate tenants, returning a combined $83,280pa.

Retail Sale, 14 Hamilton Place, Mount Waverley

Two shops on one title, across a 173sqm site, sold for $2.625 million to an interstate investor at a 3.45% yield with long-term leases, and more than 30m of street frontage.

Retail Sale, Shop 5, The Mall, 348 Mountain Highway, Wantirna South

An investor paid $1.09 million for the 150sqm shop, leased to First National Real Estate and returning $36,500pa net plus GST.

Retail Sale, 339 Clarendon Street, South Melbourne

The 103sqm two level shop sold for $1.3 million with a new three-year lease to longstanding The Music Place, returning $57,000pa plus GST

Retail Sale, 561 Burwood Road, Hawthorn

The double storey shop and dwelling is leased to Minks Studio Hairdressers on the ground floor and sold for $1.435 million on a combined return of $73,236pa plus GST.

Retail Lease, Shop 1B, 55 Swanston Street, Melbourne

Original UGG Australia Classic signed a five-year lease over the 52sqm space at $360,000pa.

Retail Lease, 91 Swanston Street, Melbourne
Chemist Warehouse signed a 10-year deal for the 495sqm basement space at $450,000pa.

Retail Lease, 129 Swanston Street, Melbourne
The Metro Tunnel HQ agreed to a three-year deal over the 109.5sqm ground floor space at $485,000pa gross, at $4,429/sqm

Retail Lease, Ground Floor, 339 Swanston Street, Melbourne
Bubble tea retailer Tealive leased the 7sqm space on a seven-year deal at $15,714/sqm, at around $110,000 per annum.

Retail Lease, 236-238 Bridge Road, Richmond

Photography agency Blessed Vision inked a 3+3-year deal for the two-level 400sqm building at $65,000pa net.

Office Sale, 275 Canterbury Road, Canterbury
The Confederation of Australian Motor Sports purchased the vacant 1,357sqm building for its new offices, paying $6.728 million to Worldmark. It's on a 1,639sqm site with 30 parking spaces. CAMS sold its Dandenong Road headquarters in Malvern East last year for $8 million.

Office Lease, Southgate Complex, Southbank
JB Hi-Fi Group has leased 9,500sqm within the Southgate Complex from ARA Australia, having searched for a central location for headquarters of both JB Hi-Fi and The Good Guys, which it acquired in 2016.

Office Lease, 90 Maribyrnong Road, Footscray
Urban Edge Homes signed a seven-year deal of 2,800sqm of space at $400/sqm gross.

Hotel Sale, 139 Cecil Street, South Melbourne
A Chinese investor has paid $5.2 million at a 4.86% yield for the freehold of the historic George Hotel, which has been in operation for 150 years. The two-level building of 406sqm is leased on a new five-year deal to Samuel Tresise with three five-year options.

Industrial Sale, 1-65 High Street, Melton
The Industrial 1-zoned land parcel of almost 84,960sqm traded for $5.5 million. It has a combined frontage of 744m to the Western Freeway, Melton Highway and High Street.

Industrial Sale, 48-50 Hargreaves Street, Oakleigh
A private developer paid $4.85 million for the vacant 4,707 sqm warehouse corner site, which is zoned Industrial 1. It has a 2,184 manufacturing facility and a combined 71 metres of frontage.

Industrial Sale, 152-154 Murphy Street, Richmond
Zoned Industrial 1, the 608sqm site has a 550sqm warehouse and sold for $3.55 million with a short-term lease to a floor sanding supplies business, bringing $75,279pa net.

Industrial Sale, 13 Kelletts Road, Rowville
A fire equipment manufacturer and wholesaler will move into the 1,630sqm facility after paying $3.1 million. The 4,922sqm site has approval to extend the warehouse to up to 2,606sqm.

Industrial Sale, 257 & 259 Dundas Street, Preston
Having sold their Collingwood factory to a developer, an owner occupier picked up the adjoining sites for $3.08 million. Both cover 903sqm for a combined site area of 1,806sqm, and respectively have a vacant 572.5 sqm building, and a 600sqm building with a short-term lease returning $41,000pa.

Planning changes designed to prompt further transformation of inner-city hubs: The Victorian government is considering new town planning and zoning changes that would look to attract creative and tech companies and start-ups to suburbs such as Brunswick, South Melbourne and Collingwood, following the rapid evolution of Cremorne which has welcomed tenants such as Seek, MYOB, carsales.com and REA Group recently.

A new Commercial 3 zone is designed to “promote innovative and enterprising mixed use precincts that provide the fertile ground and business creation and experimentation”, according to the government, with the suburbs targeted because of their track record of repurposing old industrial and heritage buildings.

Another sub-$15 million CBD sale: Brookfield and ISPT paid $14.05 million to acquire the four-level 362 Little Collins Street building of 950sqm, which is on a 312sqm site adjacent to their $800 million joint venture office tower project at 405 Bourke Street, which will become NAB’s new headquarters.

The Little Collins Street building is fully leased, with tenants including Flight Centre in the ground floor retail space, and Brookfield Multiplex among those in the three office levels above. Total return is $396,000pa net.

Ringwood growth prospects attract long-term property plays: An 8,067sqm fully leased commercial site at 154-166 Maroondah Highway sold to a local family-owned investment company as a landbank for more than $11.1 million.

It has a building area of 5,021 sqm, and tenants include Beaumont Tiles, Carpet Court, Nutrition Warehouse, Mortgage Choice and Horseland, with a gross return of $747,619pa. Zoned Commercial 2, it encompasses a triangular site bordered by Maroondah Highway, Ringwood Lake and the train line near Ringwood station, and has been earmarked for rezoning and inclusion within an Activity Centre zone. The vendor was a family that had held the property since the 1930s.

Nearby, a private syndicate picked up a substantial Ringwood North corner site for $3 million as an investment and development play, also attracted to the growth of the eastern suburban corridor as Melburnians continue to embrace medium and high-density living.

The 1,423sqm site at 170-172 Warrandyte Road has a combined 76 metres of frontage to Warrandyte Road. Zoned Commercial 1, it currently comprises three retail shops leased to established tenants and a high profile corner retail space that was offered with vacant possession. Purchased at a passing yield of 2.5%, the new owners are looking to take advantage of the rental uplift by leasing up the vacant area, and developing in the future.

Major Dandenong office building changes hands: The Hellenic Club of Canberra has sold the Victorian government’s principal Metropolitan Multidisciplinary Centre for $17.3 million.

The three-level, 2,846sqm building at 1-9 Dandenong Street, on a 3,134sqm corner site fronting of Cheltenham Road, was completed in 2014 by developer Open Corporation Funds Management. The government has a 10-year lease until 2024 that returns $1,057,300pa net.

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.