650 Kororoit Creek Road, Altona North
An investor bought the 7,372sqm petrol station site leased to United for $8.62 million, on a 5.04% yield. United has a new lease to 2034 plus options to 2064 that brings $434,425pa net.
627 High Street, Kew East
An investor bought the 3-level 520sqm building for $3.1 million. Hooking Bar & Restaurant is on the ground floor, returning $86,000pa net, with fitted offices on levels 2 and 3.
1&2/598 St Kilda Road, Melbourne
The 217sqm ground floor property sold for $1.83 million on a 5.59% yield. Charles Lloyd Property Group has a brand-new 6+6-year lease returning $103,000pa plus GST.
168 Wellington Street, Collingwood
The 2-level, 239sqm building sold for $1.8 million with short-term income returning $60,000pa from 2 ground floor tenants.
374 Lygon Street, Brunswick East
The 190sqm ground floor strata space sold for $890,000, with 2 years remaining on its lease to YBL Group Pty Ltd with no further options, returning $43,633pa plus outgoings and GST.
Shop 7, Level 4, 744 Bourke Street, Docklands
Japanese eatery, Katsu House leased the 65sqm space outside Marvel Stadium for 5 years at $34,000pa.
52 Glasshouse Road, Collingwood
The 3-level 180sqm office building sold for $1.452 million, on a 4.5% yield, with a short-term lease over the top 2 floors.
468 St Kilda Road, Melbourne
Jenny Craig leased the 669sqm level 1 office for 6 years at $375/sqm net.
336 Cooper Street, Epping
Motorcycle parts company AMX sold its premises for $9.55 million in a sale and leaseback deal. The 2,744sqm building is on a 5,194sqm Comprehensive Development-zoned site and traded on a 3.93% passing yield. AMX has the right to terminate its lease within 3 years.
171-173 Grange Road & 3 Montefiore Street, Fairfield
A private investor bought the 2,670sqm office and warehouse occupied by Desa Australia Pty Ltd, a subsidiary of French energy giant Engie, for $8.5 million on a 4.75% yield. It has a 5-year lease to June 2023 with a 5-year option returning $412,000pa net plus GST and is on a 4,395sqm corner site with 24 parking spaces.
31 Progress Street, Mornington
The 1,500sqm showroom, office and warehouse building sold for $3.33 million. Its tenants have a new 3-year lease option with a further 3-year term, returning $144,615pa net.
35 Wren Road, Moorabbin
The 390sqm brick warehouse on a 642sqm Industrial 1-zoned site sold for $1.28 million at a 3.2% yield. It is leased until November 2025 with a 4-year option.
3/10 Duerdin Street, Notting Hill
Solar energy firm Clenergy Australia bought the 750sqm office and warehouse with 15 on-site parking spaces for $2.3 million. It was formerly occupied by printing business Splitting Image.
27/5 Scanlon Drive, Epping
The 89sqm strata unit sold for $320,000, 24% higher than what it sold for 1 year ago.
1 Trafalgar Road, Epping
The 3 office and warehouse units, ranging from 432sqm to 744sqm, were leased on 5-year terms at between $126 and 129/sqm.
59 Calarco Drive, Derrimut
Norwegian multinational chemicals company Jotun leased the 6,358sqm office and warehouse for 10 years at $95/sqm gross.
55 Mulcahy Road, Pakenham
Chinese-backed developer SightStone bought the 5.4ha farmlet for $10.57 million. It has potential for a 54-lot residential subdivision and is positioned between a new housing estate and a retail town centre.
97-99 Montague Street, South Melbourne
The 261sqm site with a 181sqm showroom and warehouse sold for $2.25 million. It is zoned Capital City allowing development of up to 20 levels.
180-184 Clarke Street, Northcote
A developer bought the 1,562sqm site on Rucker’s Hill for $4.5 million. It has a 19th century brick house with an elaborate rear façade that once fronted a racecourse at the bottom of the hill.
2 Wanganui Road, Shepparton
The 7,881sqm site home to a 914sqm VetPartners clinic sold for $2.615 million on a 5.43% yield. VetPartners has a 5+5-year lease returning $142,057pa plus GST.
7966 Goulburn Valley Highway, Kialla
An investor paid $985,000 on a 4.67% yield for the 145sqm building on a 2,251sqm site, leased to VetPartners on a 5+5-year lease returning $46,000pa plus GST.
Land-Rich Investment Attracts Strong Interest
A land-rich Glenferrie Road, Hawthorn property is the latest property in prime of Melbourne’s famous shopping strips to change hands.
Fitzroys’ Chris Kombi and Chris James sold 812-816 Glenferrie Road & 1 Measham Place for $5.75 million on behalf of private vendors.
The BaiFuXin Family Office is the purchaser, intending to use the property as an investment for now and develop in the future.
BFX Family Office sees great value in this particular pocket, with the purchaser already owning 858 Glenferrie Road, Hawthorn, which has a permit for a 7-level, 87-room Novotel Hotel that is expected to open in 2023.
“Melbourne shopping strips have proven their resilience during COVID. Investment, occupier, land bank and development opportunities in the prime of shopping strips remain a compelling proposition,” Kombi said.
“We’ve seen multiple types of opportunities transact in recent weeks. Sites have traded as trophy investments, repositioning opportunities, and for landbanking and development.
“Over the past 2 years our local shopping strips have been the place to go for a coffee or have something to eat and break up the day, or to catch up with people and to go shopping.”
In recent weeks, Fitzroys has sold over $50 million worth of shopping strip properties within Melbourne’s famous shopping strips. They have included a $16.2 million sale on Church Street, Brighton, and major deals on Glenferrie Road, Malvern; Burke Road, Camberwell; and Chapel Street, South Yarra.
The Glenferrie Road, Hawthorn sale price reflected a sharp net yield of 2.2%, and a building rate of $16,000 per sqm and land rate of $7,151 per sqm.
The large underutilised 809sqm site, zoned Commercial 1, comprises a fully-leased 360sqm building of 2 shops and 4 office suites, returning a net rental of circa $129,000 per annum from 6 established tenants. It also has on-site parking for at least 14 vehicles.
James said interest came from local and national parties, including some backed by offshore capital.
“Investors were seeking a quality diversified income stream, while value-add players, developers and landbankers all recognised the large site area’s underutilisation and favourable zoning. The common thread was that all of these buyers were attracted the reputation of Glenferrie Road, Hawthorn.”
The strip has been among the better performers of Melbourne’s shopping strips throughout COVID, according to Fitzroys Walk the Strip report, with vacancies remaining steady since early 2020.
“The prime section of Glenferrie Road has remained as strong as ever. The return of students to Swinburne University has brought renewed activity across the strip throughout all hours, underpinning the buzzing hospitality offering,” James said.
He said further upside in the strip can be found in the fast-growing Hawthorn office market, which has seen strong demand in the changing working environment. The highly accessible inner-suburban location with the quality lifestyle offering of Glenferrie Road at its doorstep is hugely attractive to businesses looking to attract and retain employees.
Meanwhile, Boroondara Council’s Glenferrie Placemaking Plan will be carried out over several years with the mission of improving connectivity throughout Glenferrie Road, and Council is also looking to redevelop its owned car park sites in the precinct to accommodate multi-level parking and increase capacity.
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.