Weekly Wrap

Fitzroys Weekly Wrap - 10th May 2019

Posted on 10th May 2019

3 Linden Tree Way, Cranbourne North
A local investor purchased the brand new shop, within The Avenues Town Centre, for $1.295 million for their self-managed super fund. Seven Day Fresh has a 7 7-year lease over the 200sqm premises, which returns $82,400pa plus outgoings and GST.

38 Church Street, Brighton
Fashion label Saba is the latest addition to the evergreen shopping strip, leasing the primely positioned space at $130,000pa plus outgoings and GST.

33 Russell Street, Melbourne
Renowned restaurateur Andrew McConnell has leased the former Bang & Olufsen space on the ground floor of Cavendish House for his next hospitality concept. The 384sqm space, on the corner of Flinders Lane, is close to his popular venues Supernormal and Cumulus Inc. The quoted rent was between $450,000 and $500,000.

158 Lygon Street, Brunswick East
Stache Hairdressers leased the 345sqm first floor corner space on a 5 5-year deal at $60,000pa net.

Suite G03, 12-14 Cato Street, Hawthorn East
The vacant ground-floor office of 158sqm includes five basement car parks and sold for $820,000.

602 Whitehorse Road, Mitcham
An accounting firm leased the 300sqm space on a 5-year term at $250/sqm.

452 Flinders Street, Melbourne
Regional train operator V/Line signed a long-term lease over 5,972sqm on levels 5 and 6 and part of level 2 for its new Melbourne head office. Also within the Dexus-owned 17-level tower, tech start-up Mantel Group leased 987sqm, and another tenant has taken 1,100sqm on level 17. Recent deals in the building have been struck at around $570/sqm.

42-46 Fairchild Street, Moorabbin
An owner occupier purchased the 3,616sqm office and warehouse building in the Parkview Estate for $6.58 million.

12-18 St David Street, Fitzroy
A private investor bought the warehouse of micro-dairy Saint David Dairy for $3.8 million, marking the first time the 545sqm property had changed hands since 1992.

90, 94 and 98 Proximity Drive, Sunshine West
Three adjoining warehouses of a combined 1,907sqm sold to a private investor for $2.8 million, at a 6.81% yield. The buildings are on a corner site with frontage to Endeavour Way.

61 Castro Way, Derrimut
V/Line has also leased a 1,110sqm office and storage depot for its western region rail operations, and will pay around $85 to $90/sqm.

186 Sladen Street, Cranbourne
The 926sqm Activity Centre-zoned site sold for $950,000, with a permit for a mixed-use project that comprises 16 apartments and a ground floor commercial space.

Malaysian investors snap up Chinatown mainstay

Shark Fin House in Melbourne CBD’s Little Bourke Street has sold to Malaysia-based MKS Empire for $14.5 million.

The 928sqm four-storey building, at 131-135 Little Bourke Street, is on a 288sqm site in the city’s Chinatown precinct and sold with a new 10-year lease to Shark Fin Group at a 3.6% yield.

Shark Fin House has traded from the building since 1989. Shark Fin Group operates four restaurants and specialises in Cantonese cuisine.


Exhibition Street building sells for first time in 50 years

Hodgson Partners has acquired the six-level office building at 45 Exhibition Street in the CBD for a figure reported to be more than $20 million.

Zoned Capital City 1, the building has a net lettable area of 1,567sqm and occupies a 344sqm site in the east end of the CBD. It is next to the 23-level 41X tower, built in 2014 for the Australian Institute of Architects, and Pasino House.

45 Exhibition Street was sold by the Kranz family, which purchased the building in 1969 for $78,000.

Eastern suburb office market remains active

Investor Wei Zhou has reportedly purchased the three-level office building at 19-23 Prospect Street, centrally located in booming Box Hill, for around $22 million.

On a 1,999sqm site, the 4,303sqm building returns $1.37 million from eight tenants and traded at a 6.2% yield.

Two Prospect Street sites are currently subject to residential skyscraper proposals, including respective 194-apartment towers at 9-11 and 31-35 Prospect Street, and the building is also close to developments by Golden Age Group on Station Street, and a string of nearby sites on Whitehorse Road also slated for sizeable projects.

Also throughout Melbourne’s eastern suburbs, China-backed Poly Holding has just acquired two three-storey Burwood Highway office buildings in Forest Hill, on a 2.62ha block opposite Tally Ho Business Park, for $45.85 million. It is next to the Hewlett Packard office campus on a 5.68ha site that Poly purchased last year for $88 million.

In Kew, Fitzroys’ Paul Burns recently sold the three-level 3,361sqm Kew building at 79-83 High Street for $19 million, in conjunction with Kelly & Kelly.

Disclosure:Fitzroys Property Wrapis 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 2019 Fitzroys.