Historic Auction Serves Up Huge Result
The historic auction of a Tunstall Square shopping centre retail asset has netted $2.075 million for the vendors of more than 60 years.
Entrusted with the campaign, Fitzroys’ Chris Kombi and Jordan Ceppi sold 13 Tunstall Square under the hammer at a tight 4.11% yield.
Kombi said the auction competition between five parties, with more than 70 bids, pushed the sale price well past the reserve and to a remarkable building rate of $16,000/sqm.
The 130sqm single-storey bricking building is on a 213sqm site that provides future value-add potential, and has a frontage to Tunstall Square of 6m with excellent rear access via ROW.
It is leased to long-standing and renowned tenant Mauro Bros Butchers, which has traded from the property since 1969 and currently has a 5-year lease.
“The strong enquiry and massive result reflected the historical significance of the vendors’ decision to sell in a market that has seen pent-up demand for a high-quality retail properties in well-performing locations across Melbourne,” Kombi said.
Pace Sells Collingwood Office Tower Development
Pace Development Group has sold its 51 Langridge Street office tower in the booming Collingwood commercial market for $31.6 million to a private investor.
Currently under construction, the 10-level, 3,000sqm building will also have a rooftop terrace, and is just over half-leased to tenants that include Inspire Group, Melburnian Medical, Campaign Agent and café Ground Crew.
Close by, Grocon is building the 13-level, $120 million Northumberland office tower that will be home to skincare group Aesop and co-working space operator The Commons, and works have begun at 71 Gipps Street on a 9,000sqm office building that has attracted a pre-commitment from co-working brand Spaces.
US company Hines is planning a $200 million prefabricated timber office complex at 36-52 Wellington Street.
Grocon In Due Diligence For Major North Melbourne Site
With backing from Singapore’s sovereign wealth fund GIC, developer Grocon has entered into due diligence to acquire a 1.5ha North Melbourne site that is one of first major privately-owned properties offered for sale in the Arden urban renewal precinct.
Currently home to the Nick Theodossi Prestige Cars dealership, the property could change hands for around $135 million according to the Financial Review. Development potential for the site includes a mixed-use commercial, student accommodation, retail and residential project worth $1 billion. It is located close to the new Melbourne Metro Tunnel station being built for the Arden precinct.
Centuria Clinches Mulgrave Office
Centuria has bought a fully-leased A-grade office complex in Mulgrave for $27.8 million from Brisbane-based Stronghold Investment Services
Built in 2006, the 5,851sqm complex has two buildings on separate titles and tenants include Tyco Johnson Controls, PZ Cussons, Service Stream and Carer Grange.
Singaporean property group Ascendas REIT recently paid $110.9 million for a new 8-level, 17,500sqm building in Mulgrave that will be the new national headquarters of Nissan.
Chadstone Up for $685m Expansion
Australia’s biggest shopping centre, Chadstone, is set for an $685 million expansion that will include more levels for two car parks, a 9-level office building, an enhanced fresh food precinct and growth of its dining and leisure precinct.
Vicinity Centres will need approval of the local council and of Chadstone’s half-owner, John Gandel.
Chadstone just opened its new 5-star, $130 million MGallery hotel, run by Sofitel.
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.