Weekly Wrap

Fitzroys Weekly Wrap - 16th April 2021

Posted on 16th April 2021

000 Retail 05

311-327 Princes Drive, Morwell
An investor bought the home of The Top Pub for $3.06 million, at a 4.74% yield. The 3,100sqm building comprises a pub, 17-bedroom motel and BWS liquor store on a 1.83ha site, and is leased to Woolworths-backed ALH on a triple net deal until 2028 with options to 2068. The vendor was ASX-listed ALE Property Group,

Shops 2 and 9, 53 Mosaic Drive, Lalor

These 2 strata-titled properties within Mosaic Village sold individually for a combined $1.09 million, and at a sub-5% yield. Shop 2 is leased to Old Socks laundrette on a 7+5-year deal, and Shop 9 to Fatwraps on a 7+7-year term.

106 Greville Street, Prahran

The 57sqm shop sold to an investor for $636,000, at a 4.85% yield. It is leased to tobacconist Urban Xpress on a 5+5-year deal.

693 Burwood Road, Hawthorn

ASX-listed Baby Bunting signed an 8-year lease plus an option over the 1,332sqm former BMW premises, at just over $390/sqm. It is moving from its current site at 291 Burwood Road.

Unit 2, 189 Johnston Street, Fitzroy

Relocating from across the road, Modern Furniture Store leased the 320sqm showroom with 9 on-site parking spaces at around $370/sqm.

000 Offices 05

571-575 Raglan Parade, Warrnambool
The Victorian government-leased 1,305sqm building sold to an investor for $5.575 million. It is undergoing refurbishment and has a 7+5+5-year triple net lease returning $287,100pa plus GST.

000Industrial 05

7/1-7 Canterbury Road, Braeside
An owner occupier bought the vacant 640sqm office and warehouse with a 7.1m clearance and on-site parking for $825,000. The vendor was the previous owner occupier.

000 Development 05

300 Frankston-Dandenong Road, Seaford
Point Property Group sold off the 6.55ha industrial-zoned land for $19 million. It had previously been subject to a proposal for a $28 million development with a Coles and Liquorland-anchored shopping centre, service station, specialty retail and carwash, and residential subdivision and industrial units.

65 Mary Street, Officer

Western Australian developer Satterley paid $11.26 million for the 3.6ha site, which last changed hands in 2005 for $855,000. The parcel is expected to accommodate around 110 dwellings. Satterley is already developing a 1,700-dwelling community in the suburb.

000 Specialised 05

57-59 Stud Road, Dandenong
An investor bought the Crest Children’s Sanctuary childcare centre for $7.63 million. The 762sqm facility is on a 1,474sqm site and has a new 15-year lease returning $388,500pa plus outgoings and GST, with options to 2056.

406 Elgar Road, Box Hill

A medical specialist bought the former Ambulance Victoria facility for $1.8 million, with plans to upgrade and occupy the 150sqm building. Zoned Residential Growth 1, it is on a corner 676sqm site and had been held in the same family for 40 years.

18 Matilda Avenue, Wollert

The 156sqm medical clinic sold for $1.466 million. It is leased to Dental One for 7 years until 2024 with options to 2034 and returns $70,191pa plus GST net.

000 Talking Points 05

Caulfield Racecourse Set for $570m Redevelopment
Caulfield Racecourse has unveiled its $570 million redevelopment plans, which would transform the venue into a sports and entertainment precinct.

As part of the 15-year plan, it would feature an outdoor concert and events space with capacity for 15,000 people and indoor sports complex, and up to 7 sports fields within the perimeter of the racetrack. There would be turf surfaces for footy, cricket and soccer, and synthetic pitches for hockey, as well as an outdoor gym and picnic areas.

Night racing would be held on a second track, and restaurants and pubs will be built around the grandstand.

Walking, running and cycling trails will be created, as well as gardens and open spaces for markets and off-leash walking areas. Affordable housing aimed at university students from low socio-economic backgrounds or frontline health workers may be built above a community and indoor sports centre.

Melbourne Racing Club has committed $285 million to the project, funded partly through the potential sale of Sandown racecourse. The balance would come from federal, state and local governments. Construction could begin from 2023.

On the other side of town, Moonee Valley racecourse is in the early stages of a $2 billion redevelopment that will deliver 2,000 dwellings for 4,000 residents, retail and entertainment spaces, offices, and more than 20ha of new open space.

An entirely new grandstand will be constructed and the racetrack reoriented.

Among the early works are the recent opening of the half-hectare Tote Park, and conversion of the heritage-listed circa-1931 Tote building into a café and venue that will open this year.

CBD Shops Sell
A Chinese-based investor has spent $5 million buying 4 shops in the Melbourne CBD’s Katherine Place as activity returns to the city.

The purchaser has just paid $940,000 for 1/517 Flinders Lane and $749,263 for 28 Katherine Place, both leased to restaurants. Earlier this year, the investor bought Number 18 for $1.675 million, at a 4.65% yield, and Number 26 for $1.575 million at 4.75%, respectively leased to an Indian eatery and a café.

At 535 Flinders Lane, a local private investor snapped up the 18sqm space leased to Lau’s Café for $630,000 at a 3.2% yield. It returns $35,465pa.

Meanwhile, a historic converted warehouse at 27 Niagara Lane sold for $3 million. The 3-level, 250sqm building was constructed in 1887 for a chain of furniture warehouses and has been since used for office space.

Brewhouse Flying Into Hawthorn
Hawthorn is set to welcome its 1st brewery as the popular location continues to evolve into a vibrant inner-suburban retail, hospitality and commercial hub.

New operators Ramblers Ale Works leased the 349sqm building on a 450sqm site at 96 Riversdale Road, next to the busy corner of famous Glenferrie Road. Fitzroys Agency Manager Tom Fisher negotiated the 5-year deal at $100,000pa on behalf of a private investor.

Ramblers Ale Works will open early this year and serve independent craft beer brewed on-site and plumbed straight from tank to tap, and will also offer decadent bar food.

Originally a mechanics hall, 96 Riversdale Road was repurposed in recent years into a fashion, furniture and homewares store and café. It retained its red brick walls, concrete floor, and skylights, which Fisher said presented ideal character elements for the brewery.

This was just one of a number of attributes that made the building a perfect match, Fisher said.

“High ceilings and a large building and site footprint allowed Ramblers Ale Works to accommodate their brewing system infrastructure, coolroom, and both indoor and outdoor space for patrons.”

The expansive 16m frontage close to the busy corner presents excellent signage opportunities, particularly attractive to a business wanting to announce its presence.

The operators of Ramblers Ale Works had been searching for a location for some time, having lived, studied and worked in the area over a number of years, and recognised the growing demand for a local craft beer venue.

“Craft beer bar and breweries are more typically associated with Melbourne’s city fringe. The established and growing catchment of Hawthorn and the inner-east already has a number of high-quality hospitality offerings across its retail strips, but the evolution of the area has seen demand grow for new and unique offerings like this,” Fisher said.

He said the tenant’s commitment to a larger space, 5-year deal and the absolute rental figure demonstrated a clear vote of confidence in Hawthorn and the surrounding area.

“Hawthorn’s commercial market has been attracting a growing number of businesses, many of which are looking for highly-accessible locations with a high-quality hospitality and lifestyle offering, and more so in a period of more flexible working arrangements and a broader acceptance of working from home.

“Thriving local retail strips such as Glenferrie Road, Hawthorn have been a drawcard for businesses and residents looking for local lifestyle amenity, and the new brewhouse will only add to that attraction.”

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.