434 Centre Road, Bentleigh
After 42 years of ownership, the 180sqm building sold for $1.98 million on a 3.75% yield. Flight Centre, which has been at the property for over 20 years, has a lease expiring in June 2023 with no options.
1208 High Street, Armadale
A local investor bought the 130sqm building for $1.91 million, on a 3.8% yield. It is leased until 2026 with options to Melanie Grant, which has boutique skin studios in Melbourne, Sydney, Paris and Los Angeles. The sale price reflected a land rate of $16,200/sqm and building rate of $14,700/sqm.
69-75 Burgundy Street, Heidelberg
A local investor paid $5.5 million for the 658sqm retail and office building, which is on a 611sqm corner site zoned Commercial 1 and directly opposite Warringal Shopping Centre. It sold on a 2.99% passing yield.
68-70 Bridge Mall, Ballarat
The long-term home of Nextra Newsagency sold for $1.73 million, on a 6.58% yield. It is on a 544sqm site with dual retail frontage and has a 7.5-year lease to November 2026 plus options to 2036.
Shop 1, 293-297 Bay Street, Brighton
An investor bought the 50sqm shop for $710,000. It is leased to national tenant SprayAus, returning $28,840pa plus GST.
252 McKinnon Road, McKinnon
The 135sqm shop and dwelling sold for $790,000 on a 2.95% yield. It has had the same tenant for 25 years.
158a & 160 Welsford Street, Shepparton
The 569sqm office building home to accounting firm Stubbs Wallace sold for $1.853 million, on a 6.56% yield. It has a 3-year lease to July 2024 and options to 2030, returning $121,518pa plus GST.
322 Glenferrie Road, Malvern
Health, dementia and aged care provider Hammondcare leased the 544sqm 1st floor office, which comes with 15 on-site parking spaces, at nearly $320/sqm.
Units 15-19, 158 Fyans Street, South Geelong
The 5 new high-clearance warehouse units ranging from 150sqm to 375sqm sold individually for a combined $3.87 million.
105 Northern Road, Heidelberg West
A local owner-occupier bought the 605sqm warehouse on a 2,058sqm site for $2.9 million. The property has a permit for an additional 3 warehouses.
200 Grange Road, Fairfield
An investor bought the 658sqm building home to BMW specialist mechanics Northern BM for $2.725 million, on a 3% yield. Northern BM has a 3-year lease plus options returning $83,700pa net.
40-42 Isabella Street, Moorabbin
The 595sqm standalone building sold for $1.95 million.
12 Rushwood Drive, Craigieburn
An owner-occupier bought the 847sqm warehouse on a 1,440sqm site for $1.77 million.
2 Logis Boulevard, Dandenong South
Deks Industries leased the 2,997sqm facility at $120 per sqm.
98-104 Williamson Street, Bendigo
Amber Group sold the vacant 1,988sqm site with a permit for a 6-level hotel for more than $4.5 million.
1 Bacchus Marsh Road, Corio
Australian Unity bought the Corio Medical Clinic property for $9.5 million, on a 4.5% yield. It has a 1,324sqm building on a 6,700sqm site and has a head lease to Better Medical. The total rent is $430,000pa.
1 & 5/6 Big Muster Drive, Dinner Plain
An investor paid $1.28 million for the site home Saltwater Hotels & Resorts, at a 5.53% yield. The 447sqm site has 2 1-bedroom loft apartments plus retail, office and staff quarters and has 4 on-site parking spaces.
Boutique Developer Buys the Perfect Fitzroy Site
One of the best and last remaining development sites in one of Australia’s most sought-after lifestyle suburbs has sold for more than $9.3 million after attracting huge interest.
Fitzroys’ Chris James and Chris Kombi sold 450 Gore Street, at the corner of Leicester Street in Fitzroy, on behalf of a private family.
The campaign generated more than 130 enquiries with multiple qualified underbidders competing for the property. It sold to prominent high-end boutique developer Neometro for $9,305,500, at a high land rate of $10,350/sqm.
The significant triple-fronted 900sqm site is on beautiful tree-lined Gore Street and behind popular Smith Street, named the Coolest Street in the World by Time Out. Fitzroy itself, meanwhile, was recently ranked as Melbourne’s most liveable suburb by CoreLogic, which took into consideration parks, health, shopping, public transport, schools and walkability across every one of the city’s suburbs.
“Developers looked past inflationary pressures and growing construction costs, recognising this was an unrivalled opportunity to deliver a project in the heart of one of Australia’s most liveable locations,” James said.
“We’ve seen prudent, highly-qualified developers compete strongly for the few recent offerings in the area and, as expected, this was no different.
“Inner-city locations with excellent lifestyle qualities are particularly popular with Melburnians as flexible working arrangements become commonplace. The market’s seen overwhelming evidence for demand in the immediate area across multiple projects.”
The site has favourable Mixed Use zoning and is within the Fitzroy East and Johnston Street North planning precinct, which promotes significant density and development.
Kombi said the site is within walking distance to every possible amenity including parks, public transport, renowned bars and eateries, and Fitzroy swimming pool. As well as Smith Street, the site is close to the Brunswick Street and Johnston Street lifestyle precincts, as well as the iconic Edinburgh Gardens, and just 1.5 kilometres from the Melbourne CBD.
Current improvements include a 780sqm single-storey warehouse and on-site car parking, leased on a monthly agreement. James said the property attracted interest from buyers ready to immediately go about working on development plans, as well as landbankers who were keen to generate a strong income from a quality tenant while assessing their options for the site.
Neometro’s project will be the latest development in Fitzroy, which attracts local, interstate and international guests to the precinct given its world-class offering of retailers, restaurant, cafes and bars. The suburb is soon to be home to leading boutique hotel group The Standard nearby on Rose Street, where a 126-room hotel is set to be opened in 2023.
Piccolo has recently been granted a permit for their $120 million apartment project at 385 Gore Street and sold out its 71-75 Argyle Street project, while the Victorian Government is redeveloping the Fitzroy Gasworks site into a new residential, sports and community precinct.
Close by is the rapidly developing Collingwood office market with multiple projects recently completed and underway, including the $111 million Aesop headquarters by Impact Investment Group, global investment group Hines’ $200 million timber tower, and projects at 51 Langridge Street and 71 Gipps Street.
GIC Buys Into 555 Collins Street
Singapore’s sovereign wealth fund GIC has taken a 50% interest in an $800 million CBD office tower Charter Hall is developing at 555 Collins Street, which has secured major pre-commitments from Amazon and Aware Super.
Currently under-construction, the 48,000sqm building is part of a $1.5 billion dual-tower development that will deliver 84,000sqm of space, including a retail component.
The fund-through style deal was struck on a yield is on low 4% range. Amazon and Aware Super’s leases cover about 2/3 of the stage one tower.
Singaporean investors have been active in Melbourne’s CBD office market recently. CapitaLand has just paid $320 the 120 Spencer Street tower opposite Southern Cross station on circa 5% yield, fund manager HThree City spent $236 million to buy 330 Collins Street, and developer SLB Development bought the former Victoria University campus on King Street with vacant possession for $40 million.
Charter Hall, meanwhile, has just taken a 50% share in the $2 billion Southern Cross towers complex on Exhibition Street in a deal with Canadian group Brookfield and US giant Blackstone reflecting a circa 4.5% yield.
More Supermarket Sales
The Supa IGA property in Thomastown has sold for $11.3 million in the latest Melbourne supermarket asset sale.
A local family bought the strata-titled 2,032sqm property on a 4.15% yield. Metcash has a new 10-year lease.
It follows the sale of another strata-titled supermarket, the 1,827sqm Woolworths in the old Glenferrie Market complex, which sold for $12.85 million at 3.3%.
Fitzroys recently sold the 3,744sqm Woolworths Eltham supermarket building on a 9,044sqm site for $35 million, which also reflected a 3.3% yield. Other supermarket assets to trade on sharp yields recently include a Woolworths in North Balwyn for $45.7 million on a 2.99% yield, a Coles Local on Glenferrie Road in Hawthorn for $24.5 million at 1.9%, and a Woolworths in Blackburn South for $29.3 million at 2.46%.
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.