Fitzroys Weekly Wrap - 19th October 2018

Posted on 19th October 2018

Retail Sale, 2 Small Street, Hampton
A Beijing-based investor purchased the 438sqm corner site, leased to Little Mister Café and flexible workspace group Happy Spaces, for $3.6 million at a 3.2% yield. It has a 362sqm building and on-site parking for five cars.

Retail Lease, 107 Swanston Street, Melbourne
International hair care retailer FicceCode will open their first Australian store after signing a five-year deal over the 28sqm shop at of $249,000pa.

Retail Lease, Shops 1-5, 600 Burke Road, Camberwell
Bupa Optical leased the combined 116.8sqm space within Camberwell Arcade from the private landlord at $154,994pa, joining Anytime Fitness and HSBC in the building.

Retail Lease, 70A Acland Street, St Kilda
KFC has taken the 90sqm space at the junction of The Esplanade and Carlisle Street on a five-year deal with a five-year option, and will pay $80,000pa net to a local developer.

Retail Sale, 8A Wood Street, Nunawading
The 72sqm shop changed hands for $481,000 with a lease until September 2019 to a Japanese tutor, with a three-year option, and currently bringing $16,872pa.

Retail Lease, 31 Toorak Road, South Yarra
Freight and packaging firm Pack & Send is relocating within the suburb to the 94sqm premises, and will pay $38,000pa net on a five-year deal with a five-year option.

Specialised Asset Sale, 38-40 Dalmor Avenue, Ormond
The Think Childcare centre sold for $2.96 million, at a 4.9% yield. Zoned General Residential, the 1,256sqm site is licensed for 60 places and has a five-year lease until 2021 with three five-year options, bringing $146,598pa plus GST.

Land/Development Sale, 1-5 Eastbourne Street, Windsor
A developer paid $5.67 million in an off-market deal for the site covering two titles, at $9,265/sqm. It has a two-unit apartment block and an adjoining two-storey warehouse.

Land/Development Sale, 54, 56 & 58 Thompsons Road, Bulleen
A developer paid $3.25 million for the three adjoining residential lots across 1,931sqm with intentions to build a childcare facility.

Office Sale, 22 Wellington Street, St Kilda
The heritage-listed period building of 425sqm sold for $2.85 million. It is on an 833sqm Commercial 1-zoned site and has potential for expansion.

Office Lease, 1 Chapel Street, Blackburn
Electrical wholesaler Lawrence and Hanson has taken up around 2,000sqm on the second floor of the 6,059sqm building that was recently picked up by Vantage Property Investments from News Corp in a $30.2 million deal. The new tenant is consolidating its South Melbourne and Heidelberg offices and will pay $345/sqm on a 10-year lease, and join Leader Newspapers in the building.

Office Lease, 2/11 Amsterdam Street, Cremorne
Social Blue inked a two-year lease over the 180sqm premises at a gross face rent of $500/sqm.

Office Lease, Level 3, 252 Lygon Street, Carlton
Trinity College took up the 400sqm strata office in on a two-year deal at a gross face rent of $400/sqm.

Industrial Sale, 47-53 Capel Street, West Melbourne
A Sydney investor purchased the vacant office and warehouse site of 550sqm as a landbank, paying $4.235 million. The Mixed Use-zoned the property has a two-level building of 297sqm.

Industrial Lease, 122 Indian Drive, Keysborough
Assa Abloy Entrance Systems leased the new 3,600sqm warehouse at around $100/sqm.

St Kilda Road hostel site snapped up: St Kilda Road’s southern end is set for further change, as redevelopment projects spring up in St Kilda. A listed Malaysian developer paid $16 million for the Habitat HQ backpacker’s hostel corner site of 2,540sqm in at 333 St Kilda Road, St Kilda, with intentions for an apartment project.

It currently has a three-level building of 1,612sqm and a potential development height of six levels.

Child care-anchored commercial complex changes hands for $15 million: The brand new mixed-used, three-level corner building in Melbourne’s northern growth suburb of Doreen is anchored by a Guardian Childcare centre. Fully occupied, the 3,753sqm complex on a 2,780sqm site traded for $15 million at a 5.8% yield.

Guardian has a new 10-year lease with a 10-year option, while other tenants include Fletchers Real Estate and Twelve Round Fitness. It has seven ground-floor shops and 66 undercover parking spaces.

Abbotsford delivers again: Australia Post’s Abbotsford facility has been picked by a mainland China-based investor for $37.28 million at a 5% yield, as commercial real estate activity in the city-fringe suburb gathers further momentum.

Also leased to tech group Honeywell, the 9,466sqm Industrial 1-zoned site at 45 and 50 Grosvenor Street comprises an 8,145 sqm building and car park, and returns around $1.87 million per annum net. Australia Post recently signed a 10-year lease, while Honeywell’s tenure ends in 2021.

Fitzroys is currently marketing a 4,735sqm site recently rezoned Mixed Use, at 112 Trenerry Crescent, offering developers, investors and owner occupiers the chance to take advantage of demand for commercial and residential space across the city fringe.

The site has an existing four-level brick building of 4,252sqm fronting the Yarra River and overlooking Dights Falls and Victoria Park, with views to the CBD skyline.

Cadence Property Group, Salta Property Group and United Petroleum founder, Eddie Hirsch have all recently revealed plans for major commercial and mixed-use projects in the suburb.

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.

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