Weekly Wrap

Fitzroys Weekly Wrap - 30th April 2021

Posted on 30th April 2021

000 Retail 05

580 Burke Road, Camberwell
The dual-fronted 344sqm building sold for $6.788 million at a 3.8% net yield. National apparel tenant Witchery, part of Country Road group, has a lease until 2025 plus an option and pays $289,230pa in rent.

65 Pier Street, Altona
Offered for the first time in 52 years, the 230sqm Chemist Warehouse-leased building sold for $2.35 million, on a 3.7% yield. It is on a 256sqm site with rear access and is leased for 10 years from 2017, returning $88,600pa net.

60 Glenferrie Road, Malvern
A local investor bought the 183sqm 2-level building on a 210sqm site for $1.74 million, at a 3.73% yield. Framing, art and mirrors retailer Print Décor has a 5-year lease returning $65,163pa plus outgoings and GST.

193 Clarendon Street, South Melbourne
The 130sqm strata-titled shop and dwelling sold for $1.022 million with a short-term lease in place.

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.

696 Burke Road, Camberwell
A beauty and cosmetics retailer leased the 160sqm former Aussie Disposals store at $50,000pa plus outgoings and GST.

142 Greville Street, Prahran
French restaurant Entrecote is moving from Domain Road, South Yarra into the 500sqm property previously occupied by Fog. It signed a 10-year deal at between $200,000 and $250,000pa.

000 Offices 05

40 Barry Street, Carlton
The Victorian branch of the shoppies union, the Shop, Distributive and Allied Employees Association, sold the 644sqm office building for $5.33 million. Zoned Capital City 5, it was offered with short-term holding income.

24 Albert Road, South Melbourne
OzLook leased the 104sqm space at a face rent of $400/sqm gross.

000Industrial 05

75 Frankston Gardens Drive, Carrum Downs
Carrum Downs Property Group divested the 9,587sqm office and warehouse for $13.8 million, reflecting a 5.43% yield. It is leased to Nov Mono with more than 5 years remaining and returns $750,244pa.

5 Commercial Court, Tullamarine
The 966sqm office and warehouse sold for $1.9 million, on a 5% yield. Zoned Commercial 2, it is on a 1,244sqm site and it leased for 5 years until November 2024, returning $97,738pa plus outgoings and GST.

7 Kiefer Grove, Carrum Downs
Electronic waste recycler Ewastec leased the 1,252sqm office and warehouse with 18 on-site parking spaces for its 2nd facility. It agreed to pay $100,000pa net over 3 years.

000 Development 05

142-150 Cooper Street, Epping
Genesis Property paid $9.1 million for the 1.63ha infill site. It has 1,800sqm and 1,400sqm warehouses and an 81m frontage to Cooper Street, and has Activity Centre zoning.

1-7 Kingston Street, Richmond
The 726sqm corner site sold to for $9.05 million. Zoned Commercial 2, it has a 665sqm warehouse and is next to the REA Group headquarters.

165 Donald Street, Brunswick East
The vacant 1,862sqm office and warehouse building sold for $3.6 million. It is on a 1,760sqm site within the Moreland Industrial Land Strategy area that is earmarked for residential rezoning.

000 Specialised 05

31 Beatty Avenue, Armadale
An owner occupier bought the vacant 77sqm building on a 143sqm site for $2.125 million

25 Carrington Drive, Albion
The Royal Children’s Hospital sold off the 408sqm reception centre for $1.91 million. Zoned Industrial 3, it is licensed to cater to 160 people and was offered with bar facilities and furnishings. An owner occupier bought the property with plans to refurbish.

000 Talking Points 05

Sydney Pub Baron to Make Melbourne Debut
Sydney hotelier Justin Hemmes has paid $40 million to acquire Tomasetti House in Flinders Lane for his Merivale Group’s first venue outside of New South Wales.

The historic 7-storey brick and bluestone CBD building at 277-279 Flinders Lane is currently fully leased, tenanted by Zomp Shoes on the ground level with office tenants above, and bar and restaurant The Mill House – operated by vendors the Millett family – in the basement level. The Mill House opened in the former Liberty Social space following a $3 million refurbishment.

Tomasetti House is positioned between Degraves Street and Elizabeth Street, on the corner of Rothsay Lane, and is recorded by the National Trust and listed as a notable building in the Melbourne Planning Scheme. It was built in 1853 by William Degraves as a 5-storey flour mill and grain store, and reworked in 1905 with an Art Nouveau façade and extra levels added.

The Millett family bought the property in 2014 from Shesh Ghale $16.2 million.

Merivale Group owns and operates around 80 venues in Sydney, including Mr. Wong, Totti’s and Mimi’s, and the Ivy Precinct, and recently made its first purchase outside of the city on the New South Wales South Coast. It will take control of Tomasetti House later this year.

Tivoli Arcade Set For Refurbishment
Also in the Melbourne CBD, Sydney-based Futuro Capital has acquired the Tivoli Arcade soon after buying the 14 levels of office and education space above it from RMIT in a separate transaction.

Futuro paid $133 million for levels 4 to 17 of 235-251 Bourke Street in a sale and leaseback deal with RMIT, which will see the university lease the 23,014sqm property for 5 years. The price reflected a 6% initial yield.

Futuro has now also bought the Tivoli Arcade, retail shops and car park over the lower three levels for $73 million from Venton International, giving it control of the entire building.

The second tranche comprises around 6,000sqm of space. The Tivoli Arcade, close to the intersection of Bourke Street and Swanston Street, is set to be refurbished.

Local Consortium Buys Northern Growth Corridor Parcel
Hospitality operators the Scerri family and Chinese-backed local developer Sino Integrity Group have formed a consortium to buy 434ha of land in Beveridge, in Melbourne’s northern growth corridor.

They acquired 1545 Merriang Road and 300 Donovan’s Lane, known as Merri Park, for around $100 million from the descendants of prominent business figure Sir Cecil Looker, who was also private secretary to Prime Minister Robert Menzies.

The former farm can potentially support between 900 and 1,000 housing lots within a new 110ha suburb, as part of the Donnybrook-Woodstock Precinct Structure Plan, and a 199ha industrial estate within the Beveridge Intermodal Freight Terminal precinct.

Joseph Scerri’s JMS Hospitality group owns the Sebel Hotel in Moonee Ponds and a number of pubs across Melbourne, including Dorset Gardens in Croydon, the Roxburgh Park Hotel and Diamond Creek Tavern.

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.