Weekly Wrap

Fitzroys Weekly Wrap - 9th August 2019

Posted on 09th August 2019

195 Point Nepean Road, Dromana
The vacant 243sqm building sold for $2.22 million. Zoned Commercial 1, it is on a high exposure 383sqm corner site opposite the foreshore and near the Dromana Hub shopping centre.

173-177 Barkly Avenue, Richmond
Salta Properties acquired the showroom of kitchen and bathroom fixture suppliers Rogerseller for $14.75 million as a landbanking play. Rogerseller will continue trading from the 2,944 sqm site.

619-623 Bridge Road, Richmond
A local investor bought the part 2-storey 615sqm showroom for $4.4 million. The building has a short-term lease to Innovation Living and is on a 415sqm corner site zoned Commercial 1.

110 Koornang Road, Carnegie
A local investor paid $2.2 million for the 341sqm 2-level shop and dwelling, leased to a bakery on the ground floor on a 4+4-year term and with a monthly agreement for the residence above, for a combined return of $84,609pa plus GST.

235 Toorak Road, South Yarra
A Chinese art gallery inked a 5+5-year lease over the 121sqm space, owned by Little Projects, at $80,000pa plus GST.

Unit 3, 12 Compark Circuit, Mulgrave
An owner occupier bought the 154sqm office suite for $700,000.

128/9 Hall Street, Port Melbourne
The 144sqm multilevel office in the Port IT Business Park sold for $615,000, and is leased to Australian Internet Solutions.

24 Metrolink Circuit, Campbellfield
A Sydney-based investor purchased the 2,874sqm office and warehouse facility for $4.3 million, with a 3-year leaseback to Mills Glass Pty Ltd bringing $254,000pa plus GST.

5 Bruce Street, Mornington
The vacant 600sqm warehouse, on a 2,240sqm site site, sold for $1.57 million.

30 Watt Road, Mornington
The 410sqm warehouse with 45sqm of mezzanine space sold for $1.13 million, with a 3 3-year lease returning $58,000pa plus outgoings and GST. It is on an 837sqm corner site.

57 Gilbert Park Drive, Knoxfield
Office Furniture Group signed a 1 3-year lease for the office and warehouse building at $90/sqm.

Carlton Attracting A New Generation of Breweries

The operators of the historic Tooborac Hotel and Brewery have leased an 800sqm Carlton warehouse previously home to a scrap metals dealer, to set up a shop selling its award-winning beers and pies and with plans for a regional food and crafts marketplace and tavern selling its craft beers operating from the site.

Fitzroys Agency Executive, Lewis Waddell negotiated the deal for 137-143 Elgin Street on behalf of a private owner.

Toobarac Hotel and Brewery is the latest addition to Carlton’s current generation of hospitality hotspots, including Johnny’s Green Room, Carlton Wine Room, D.O.C., Epocha and Mr Pietro.

“We received more than 50 enquiries from a mix of industrial and hospitality operators, which reflects the demand for character and industrial-style spaces in the food and beverage industry,” Waddell said.

He said the thriving hospitality and lifestyle culture across Melbourne’s inner city is generating an increased level of interest from microbreweries, brewpubs and craft beer labels, which catering to a growing generation of people who have a greater appreciation for locally made and fresher produce.

According to numbers collated by the Independent Brewers Association using data from the Australian Tax Office, independent beer accounts for nearly 6% beer sold in Australia by volume, 10% of the market’s value. While broader beer consumption has dipped over the past decade, the independent sector is growing at 25% year-on-year, able to offer products that are more conducive to moderate drinking.

Waddell said the conversion of former warehouse buildings into brewpubs and new venues by craft labels is being seen across the inner city. Bodriggy Brewing Co. has just opened its brewpub from a former LP gas conversion centre on Johnston Street in Abbotsford, while Jetty Road Brewery, based in Dromana on the Mornington Peninsula, has plans to open in a former mechanic’s workshop in South Melbourne.

Heritage Offices At The Top End of Town

The National Trust of Australia (Victoria) has put two boutique office terraces within its Victoria headquarters at historic Tasma Terrace in East Melbourne up for lease, through Fitzroys agents Stephen Land and Samuel Friend.

NTAV is seeking experienced retail and commercial operators for leases on flexible terms at 10 & 12 Parliament Place in the prized city fringe location.

The ground floor of 46sqm and first floor of 57sqm are available at 10 Parliament Place, as well as the 103sqm ground and first floor of 12 Parliament Place, which has been used as storage for many years.

The boutique terrace-style offices are offered with original trimmings, high ceilings, large glass atrium at the rear and great natural light overlooking Burton Reserve towards Parliament House.

“Melbourne’s fringe office markets continue to attract businesses and tenants due to their accessibility, heritage and character aesthetics, and proximity to the vibrant lifestyle and amenity offerings of the inner city and CBD,” Land said.

East Melbourne has the tightest non-CBD office market in the country, according to the most recent data from the Property Council of Australia, with a vacancy rate of just 2%.

As well as the head offices of the National Trust of Australia (Victoria) across level two of the terrace complex, Tasma Terrace also comprises a gallery space, and a number of period decorated meeting and function rooms. The total site comprises of six terraces. Mr Tod café operates from the basement of the site, and is a tenant of the National Trust.

One of the finest existing examples of a 19th century, three-storey terrace in the country, Tasma Terrace was built in 1879 for grain merchant George Nipper as a stylish guest house and family home.

More Commitments to New Research and Education Hub

In one of the bigger office leasing deals in central Melbourne of recent times, blood products group CSL has signed a 20-year pre-commitment deal for 35,000sqm of space at PDG Corporation’s proposed $1 billion research and education development on the northern edge of the CBD.

If approved, CSL will establish a new headquarters and state-of-the-art laboratories at the development, known as Elizabeth North, which would span the Melbourne City Toyota dealership at 611-681 Elizabeth Street, owned by PDG, as well as the adjoining Bob Jane T-Mart site held by Jane Property Group.

PDG has lodged plans for two towers that are now almost fully committed. The University of Melbourne’s Trinity College has signed a 25-year lease for a 10,000sqm vertical campus, and Toyota for 15,000sqm on a 55-year term. The heritage Melford Motors building on the site will be retained.
On the Bob Jane property, a 20-storey, 17,000sqm tower is proposed as part of a separately lodged but associated plan.

The site is close to the University of Melbourne and the Royal Melbourne Hospital, Royal Women’s Hospital, and Peter MacCallum Cancer Centre, as well as the future site of the Parkville metro tunnel train station.


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 2019 Fitzroys.