Units 2 & 3, 455 Melbourne Road, Newport
A self-managed super fund investor bought the ground floor units, totalling 220sqm on the ground level of a mixed-use development, for $2.25 million and on a 5% yield. The property has a 3+3+3-year lease to Commonwealth of Australia.
16-20 Thistlethwaite Street, South Melbourne
The head of private education operator Durban International College paid nearly $6 million to vendor One Funds Management for the 3-level 1,253sqm building. Integrated communications agency Think HQ has a lease until December 2023 with two 4-year options returning $227,637pa plus outgoings and GST.
360-362 Clarendon Street, South Melbourne
The corner retail and office building in the Emerald Hill precinct sold for $4.1 million on a 4.1% yield. On a 262sqm site, it comprises 4 shops including South Melbourne Fish and Chips and café The Relief Unit, plus 332sqm of office space.
39-41 High Street, Shepparton
An investor paid $3.8 million for the 2015-built 551sqm building on a 482sqm site, on a 6% yield. Commonwealth Bank has a renewed 3-year lease plus options to 2034 returning $227,757pa plus GST.
392 Sydney Road, Brunswick
The part-2 level 338sqm building leased to Ray White on a 591sqm Commercial 1-zoned corner site sold for $3.26 million. The agency has a 10-year net lease to 2027 plus options to 2037 bringing $109,216pa.
233 Canterbury Road, Canterbury
Kickboxing gym 9Round leased the former CBA bank space for 5 years at $65,000pa, or just over $400/sqm.
5/36 Mills Street, Albert Park
Bokuan Sport Badminton leased the 55sqm shop for 5 years plus options at $46,800pa plus outgoings and GST, or at $850/sqm.
1171 Plenty Road, Bundoora
Nutrition Warehouse leased the 121sqm showroom at $57,000pa plus outgoings, or $471/sqm.
92 Merola Way, Campbellfield
The 881sqm fitted-out food production facility on a 1,200sqm site sold to an owner-occupier for $2.41 million.
35 Connell Road, Oakleigh
The 546sqm warehouse building, with 2 levels of fully-fitted offices, on a 660sqm site sold for $2.1 million, on a 4% yield. It is leased until 2027 to Cloud 9 Aerial Photography with a 5-year option.
10-12 Moreland Road, Brunswick
Film production company UMan Film Services leased the 587sqm building for 5 years at $100,000pa.
Unit 14, 100 New Street, Ringwood
An established medical supplies group leased the 1,185sqm office and warehouse at $140/sqm plus outgoings and GST net.
421-425 Malvern Road, South Yarra
Private investor George Saade bought the 966sqm Hawksburn development site for $14 million. It returns short-term income of $200,194pa from auto-related tenants including Beaurepaires Tyres.
1 Kilmore Road, Gisborne
The vacant 20,950sqm block home to the heritage-listed circa-1847 Macedon House Hotel building sold to a development group based in the Macedon Ranges Shire for $2.525 million.
Investor Scoops Up Retail Freehold In Hotly Contested Auction
Five bidders have fought it out at a hotly contested auction for a retail freehold with a secure lease to popular ice cream store chain Augustus Gelatery, as investors continue to put their faith in bricks-and-mortar assets.
A local investor purchased 1228 Burwood Highway, Upper Ferntree Gully for $1.31 million, on a tight 4.5% yield.
Fitzroys’ Chris Kombi and Tom Fisher sold the property on behalf of a private vendor after generating more than 90 enquiries during the campaign.
The property comprises a fully-refurbished 140sqm building on a generous 249sqm corner landholding plus rear access off Rose Street, with corner frontage of 47 metres and positioned opposite Upper Ferntree Gully train station.
Augustus Gelatery, which has a network of 25 independently operated stores across Victoria, signed a 7+7+7-year lease from September 2022 at a rental of $60,000 per annum plus outgoings and GST.
“The purchaser was after a long-term secure investment at a time of volatility in the sharemarket and residential market. The annuity-style income stream from a long lease to a quality tenant is hugely attractive,” Fisher said.
“We’ve seen yet another hotly contested auction and huge depth of enquiry during a campaign, which shows investors are still putting their faith in bricks-and-mortar investments.”
Kombi said, “Investors also recognised the excellent long-term underlying land value of the property, which is on a highly-exposed corner site with future upside located opposite Upper Ferntree Gully train station and within a surging local catchment”.
The property is surrounded numerous recognised local traders including Wok'd, Baker's Delight, Australia Post, Royal Hotel, The property is surrounded numerous recognised local traders including Wok'd, Baker's Delight, Australia Post, Royal Hotel, Hahndorf's Fine Chocolates, Brew’d Café, Quarry Bakehouse and Maxi Foods, and offers convenient access to major arterial roads providing excellent connectivity to nearby suburbs and Melbourne's CBD.
More Northcote Industrial Land To Become Residential
More of Northcote’s industrial precinct near Merri Creek is set to be redeveloped to residential, with Citinova buying nearly 1.2ha of land for close to $20 million.
The 24 Leinster Grove property comprises two 5,800sqm-plus blocks either side of Gadd Street and is surrounded by houses, with Merri Creek, parklands and Northcote Golf Course close by.
Another Retail Asset Set For Repositioning
Newmark Capital has received Council approval to add a new mixed-use 7-level building to the 23,000sqm Brandon Park Shopping Centre in Wheelers Hill.
It is planning to expand the centre to include new retail and medical offerings, 2 levels of office space and 103 serviced apartments. There will also be a conference room and a gym.
In partnership with Gurner and Qualitas, Newmark Capital is also planning a $1.5 billion redevelopment of the Jam Factory. This will introduce new retail space and upgrade to the cinema, a five-star hotel, 400 apartments, and 20,000sqm of office space, while it is also reworking the former David Jones menswear store on Bourke Street Mall into a retail and office offering.
Across Melbourne, Vicinity Centres is opening a new entertainment and dining precinct at Chadstone, where it is also building 20,000sqm of new office. It has also received approval for new apartments and offices at Hill Central, and for a $120 million office tower at Bayside shopping centre in Frankston.
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.