1082 High Street, Armadale
An investor that may occupy in the future bought the 175sqm 2-level building on a 198sqm site for $3.235 million, on a 2.16% initial yield and land rate of $16,338/sqm.
Ground Floor, 173 Lonsdale Street, Dandenong
A local investor bought the renovated 150sqm strata-titled property for $920,000, on a 5.2% yield. It is leased to multi-store eatery Chamman on a 5+5+5-year lease returning $48,000pa plus outgoings and GST.
324 Centre Road, Bentleigh
An investor bought the 132sqm ground floor strata shop, leased to Connect Hearing, for $1.515 million, on a 4.3% yield.
326 Centre Road, Bentleigh
Next door, the adjoining space leased to Bentleigh Doctors sold for $2.12 million, at a 4.6% yield.
212 Whitehorse Road, Balwyn
A private investor bought the 149sqm 2-level building on a 215sqm site for $1.551 million. It sold on a 3.56% yield with a short-term lease.
754 Burke Road, Camberwell
The 189sqm shop on a 216.5sqm site sold for $1.461 million, on a 3.3% yield. The lease to Alchemy Tattoo Studio returns $47,940pa plus outgoings and GST.
2/342 Melbourne Road, Newport
The vacant ground level 81sqm shop sold for $610,000.
Unit 1, 1228 Nepean Highway, Cheltenham
Fitness group CorePlus signed a 5+5-year lease over the 300sqm shell at $85,000pa net.
Suite 2, Level 2, 27 Ringwood Street, Ringwood
Local community employment service WCIG leased the 152sqm office suite, which has 5 on-site parking spaces, at $358/sqm net.
9 Parer Street, Reservoir
An investor bought the 480sqm office and warehouse for $1.207 million, on a 3.89% yield. It is on a 637sqm site and has a 1+1+1+1-year lease to Melbourne Sculpture School from September 2021, returning $47,000pa plus outgoings and GST.
17-31 Radcliffe Street, West Melbourne
Family-owned smash repairers Goumas, which has a site in Fitzroy, bought the 1,414sqm high-clearance warehouse for $12 million.
1 Turbo Drive, Bayswater
The 1,250sqm tenanted factory sold for $2.69 million, on a 4.1% yield. It has a 3+3-year lease from October 2019 returning $111,104pa plus outgoings and GST.
35 Glenvale Crescent, Mulgrave
The 40-year-old brick 550sqm office and warehouse sold for $2 million.
348 Cooper Street, Epping
Supply chain provider Galaxy Hub leased the 6,044sqm distribution facility for 3 years at $513,740pa. Centennial is the owner.
14 Technology Circuit, Hallam
Motif Building Supplies leased the 1,517sqm office and warehouse for 5 years at $125/sqm.
Unit 9, 100 New Street, Ringwood
A Queensland-based dry and packaged foods business leased the 390sqm warehouse with rear yard and 6 parking spaces for 3 years, at $40,000pa net.
92-100 Melakuka Road, Leopold
Harvey Norman paid $11 million for the 6.72ha farm, where it is expected to develop a homemaker centre including a Harvey Norman outlet. It is next to Gateway Plaza, anchored by Bunnings, Coles, McDonald’s and Kmart.
18, 18A & 18B Rutland Road, Box Hill
Zoned Commercial 1, the 625sqm site sold for $5.4 million. It comprises 3 adjoining buildings with a 19.5m frontage and ROW access and is within the Box Hill Activity Centre Zone.
318 Ascot Vale Road, Moonee Ponds
A local medical practitioner bought the vacant medical centre building for $1,602,500. The 130sqm building is on a 329sqm corner site zoned General Residential with 5 on-site parking spaces.
1/45 Wattletree Road, Malvern
The 105sqm medical suite property within a 1930s apartment block sold for $1 million, at a 3.87% yield. Malvern Dental Clinic has a 3+3+3-year lease from the beginning of 2021 returning $38,792pa plus outgoings and GST.
Fitzroys’ Melbourne Retail Portfolio Auction
A portfolio of 16 retail properties across 10 Melbourne suburbs, carefully collected over 70 years, is going under the hammer at Fitzroys’ Melbourne Retail Portfolio Auction.
Fitzroys’ Mark Talbot, Tom Fisher and Chris Kombi are marketing the portfolio, amassed by late businessman Harry Oviss, which will go to auction at Leonda by the Yarra, 2 Wallen Road, Hawthorn, on Thursday, 23 June from 11am.
The properties are being offered individually and are expected to sell for a combined circa $23 million.
They are all freehold in nature and located within established, well-supported shopping strips including in the heart of Swan Street, Richmond; adjacent to the high-performing Woolworths in Hampton Street, Hampton; and at the gateway to Koornang Road, Carnegie.
“There’s a mix of sizes, uses, price points and geographical locations. We’re expecting interest from investors, value-add players, land bankers and developers,” Talbot said.
“Many of the properties offer long-term leases in place to proven tenants while also enjoying the benefit of future value-add potential.”
A majority of properties are offered with secure 5+5-year leases, and many with ultra-rare 5% annual increases. Tenants range from high-performing eateries and takeaway food operators to long-standing service retailers.
“We’ve already received interest from a wide range of investors, from entry-level and first- time market participants to self-managed super fund buyers and more seasoned investors, all looking for secure long-term investments amid sharemarket and residential market volatility,” Talbot said.
“Well-located commercial property with long-term leases and sizeable annual increases like these are considered to present a more secure investment and safer place to put money in the current climate, even with further interest rate rises expected.”
Some properties are vacant or are offered with short-term leases.
Kombi said investors, value-add players, land bankers and developers will show interest in the properties’ locations within high-performing shopping strips that have weathered the COVID period admirably.
“Melbourne’s shopping strips have demonstrated their resilience over the past 2 years. The COVID period has reinforced their role as a place for Melburnians to connect with their local communities. Our ‘local village’ became something more than a place to run errands and do the shopping - it was the place to get a coffee, meet friends for a walk, or to break up the day while we were all working from home,” he said.
Opportunities also include shops in Glen Huntly Road and Hawthorn Road in Caulfield; Ranelagh Drive, Mt Eliza; High Street, Preston; Alfrieda Street, St Albans; and in Sunshine.
Fisher said the portfolio also presents a chance for investors to secure new assets before the end of the financial year.
Harry Oviss was born in 1923 and migrated to Australia with his Polish-born parents when he was 11 months old. He opened a knitwear shop in the iconic Block Arcade in Melbourne’s CBD when he was 19, and while collecting and developing properties across metropolitan Melbourne he earned a reputation as a successful clothing entrepreneur, construction magnate and art collector.
85 Spring Street Set for Office Future
Developer Pelligra has paid around $130 million for 85 Spring Street, which he is expected to refurbish and maintain as offices after the 10,700 sqm tower was previously earmarked for residential redevelopment.
Grocon had several years ago sought a residential project for the site, gaining approval for a 39-level building with 225 apartments, before selling to Jeff Xu’s Golden Age Group in 2017 for $75 million.
Golden Age Group reworked the plans into a 39-level tower with 138 apartments and a 26-level hotel with 250 rooms fronting Little Collins Street. In 2019, fund manager Anton Capital bought the property for $112 million and recently gained approval for a 37-level office tower with around 30,000sqm of floor space.
The sale follows multiple CBD office building sales to Singapore-listed groups. CapitaLand Investment bought the 22-storey office tower at 120 Spencer Street, opposite Southern Cross Station, for $321.25 million with 97.5% occupancy, and SLB Developing acquired the vacant former Victoria University campus building at 225 King Street for $40 million.
Truganina Industrial Sites Sell for $61m
ASX-listed industrial property giant Goodman Group has sold 3 newly-built Truganina warehouses to Singapore’s Frasers Logistics & Commercial Trust for $61 million.
Completed last month, the facilities at 1 Magnesium Place, 11 Magnesium Place and 17 Magnesium Place range from 4,000sqm to 8,000sqm.
They are fully leased to tenants including automotive lighting group Stedi, Goodride Tyres and building products supplier Stoddart Group, and sold on a sub-4% yield, with a weighted average lease expiry (WALE) of 6.6 years.
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.