Weekly Wrap

Fitzroys Weekly Wrap - 27th August 2021

Posted on 27th August 2021

000 Retail 05

261-267 Wyndham Street, Shepparton
The Shepparton CBD premises of major bank ANZ sold for $3.47 million, at a 3.3% yield. ANZ has a 5+5+5-year lease from 1 August 2018 and returning $115,927pa plus GST over the 587sqm building. It is on a 617sqm corner site zoned Activity Centre 1.

26-28 Victor Crescent, Narre Warren
The Barbeques Galore shop at the Fountain Gate Supercentre sold for $4.6 million, on a 4.8% yield. The retailer has a 3-year lease over the 1,200sqm building, which is on a 2,491sqm site across the road from Fountain Gate shopping centre.

436 Mt Alexander Road, Ascot Vale
Pomeroy Pacific divested the 279sqm strata-titled space, occupied by Be Well Allied Health, for $2.525 million at a 4.97% yield. The physiotherapy specialist pays $125,500pa in rent.

809 Nepean Highway, Bentleigh
The 229sqm building home to World of Music sold for $2.1 million on a 4.35% yield. World of Music has a new 4-year lease to 2025 plus options until 2033, returning $92,000pa net plus GST.

Suite 4, 245 Bay Street, Brighton
A charity leased the 105sqm office on a 3+3-year term at $42,000pa net.

241 Burwood Road, Hawthorn
Bed Bath N’ Table signed a 6-year lease plus option for the 618sqm ground floor showroom at $170,000pa net.

000 Offices 05

124 Jolimont Road, Jolimont
The Australian Institute of International Affairs sold its long-held East Melbourne offices for $5.7 million. AIIA bought the 342sqm Victorian Terrace building, known as Dyason House, in 1963 for £15,000. It was built in 1869 on a 473sqm site, and the buyer is a small local developer looking to build a high-end residential project.

2 Yarra Street, South Melbourne
The fully-leased office sold for $2,555,107 on 4.09% yield. The building has 3 tenants, Group Property Advisory, Normat Pty Ltd and Noxon Giffen Architects, who pay a combined $104,463pa net in rent.

15 Collins Street, Melbourne
A dentist snapped up the 106sqm level 7 strata office for $1.2 million.

G02, 8 Ellingworth Parade, Box Hill
Exceland Real Estate signed a 4+3-year lease at $52,250pa over the 145sqm building.

000Industrial 05

51-55 North View Drive, Sunshine West
A New South Wales-based investor bought the 2,673sqm high-clearance warehouse, which includes offices and on-site parking for 27 cars, for $4.5 million. The vendor was JP Peppertrees Investments.

41-45 Export Drive, Brooklyn
The 2-storey, 2,776sqm warehouse sold for $3.75 million.

19 Link Court, Brooklyn
Online car sales business Cars24 has leased the 4,000sqm low-cover transport facility at $710,000pa. The property is owned by GM Property Group.

Warehouse 2, 87-107 Toll Drive, Altona North
Tyre recycler Autocycle leased the 3,995sqm facility at $360,000pa, and will use the property for breaking down used tyres.

Unit 11, 41-40 Norcal Road, Nunawading
Property Revive Group signed a 3-year lease for the 387sqm office and warehouse with 5 on-site car parks, for $42,500pa net.

160 Fulham Road, Fairfield
Catalano Interiors signed a 6-year lease over the 5,518sqm showroom and warehouse building around $75-$80/sqm.

000 Development 05

148-150 Queensberry Street, Carlton
A local developer paid $4.2 million for the 362sqm property owned and occupied by the Church of Christ for more than 100 years. The property comprises an older-style simple church building and is located between RMIT and Melbourne Universities.

000 Specialised 05

1 Furlong Road, Cairnlea
A group of doctors bought the One West Family Medical Centre property and business for $2.1 million. It has a 340sqm building constructed in 2018 on a 730sqm site.

000 Talking Points 05

Surveillance Systems Captures Major Melbourne Office Deal
One of Melbourne’s bigger privately-owned office leasing deals outside of the CBD for 2021 has seen surveillance systems developer AVT Australia expand in North Melbourne, following its acquisition by NYSE-listed CACI International.

Fitzroys’ Agency Associate Stephen Land negotiated the 4-year lease at 141 Capel Street at a face rent of $701,040pa plus GST.

Refurbished ahead of the leasing campaign, the wholly self-contained, 3-level 1,582sqm building consists of offices over level 1 and level 2, and a ground floor car park with 25 single spaces.

It is only a 10-minute walk to Flagstaff train station and ample on-site street parking along Capel Street for customers and clients, and will be just a few minutes’ walk from the future Parkville train station.

AVT Australia was acquired last year by CACI International to deliver technology and capabilities in ISR (intelligence, surveillance & reconnaissance), security, and counter UAS (unmanned aircraft systems) solutions to its customers.

“As a result of its growth and acquisition, the company sought to expand their office footprint substantially. They already occupy an office warehouse of circa-500sqm within Capel Street that they will retain,” Land said.

Late in 2019, AVT Australia won a $5.2 million Defence Innovation Hub contract with the Federal Government to design and develop a system to improve the quality of images captured by drones.

Land said the a large number of tenants from a broad range of industries made enquiries, including biotech, pharmaceutical and medical research companies looking to have a presence within the city’s renowned biomedical precinct; various not-for-profit organisations who gravitate to these areas due to lower rental rates of comparable fringe suburbs and the CBD, as well as unions and other government bodies; and engineering and construction groups to be close to major infrastructure works.

“Often, larger tenants of 700sqm to 1,500sqm are looking at their moves up to 6 to 9 months out, so we were dealing with delayed commencement dates which can be tricky with landlords that are not institutional or as familiar with the market. However, in this case we were able to secure an imminent rent and commencement date,” Land said.

“The building offered prospective tenants a chance to relocate from the CBD with the option of a whole self-contained building that have become more sought-after during COVID given the greater health and logistical securities.

“While we have been seeing this trend, the demand for the north-west fringe has lagged that of the east and south east, including locations like Richmond and Cremorne.”

Land said lifestyle, amenity and accessibility considerations are more sought-after than ever with flexible working arrangements in vogue.

The building is just moments from Queen Victoria Market and the CBD, with the property offering impressive views of the city.

Makeover for Hotel Claremont
Hotel Claremont is likely to be Toorak Road, South Yarra’s next redevelopment project, with V-Leader expected to convert the heritage Italianate building into apartments, offices and retail.

V-Leader bought the property at 189 Toorak Road for $22 million deal from owner and previous operator, hotelier, Michael Renzella.

The 906sqm site has a permit in a place for a $50 million, 12-level mixed-use development with 57 apartments, 1,195sqm of office space, 4 shops and 30 parking spaces.

Last year, V-Leader group obtained planning approval for a 24,836sqm office and 288-room hotel for Lonsdale Court in the CBD, at the intersection of Lonsdale and King streets.

Hotel Claremont is next to South Yarra Square and a neighbouring row of 4 adjoining Tudor-style shops that local developer Oreana Property Group recently bought in separate transactions for more than $48 million combined.

Oreana plans to transform the 5-level South Yarra Square retail and office complex into a new luxury hotel and wellness centre. The Tudor buildings at 169-175 Toorak Road sit on a 613sqm site next to South Yarra train station, and are fully leased with short-term deals expiring early next year.

Elsewhere in South Yarra, Goldfields is developing a new 24-level office building at 627 Chapel Street, and the Jam Factory is set for a $1.4 billion redevelopment that will introduce a 170-room hotel, between 550 and 650 apartments and an office component.

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.