Investment In the Heart of the Action Sells on 3.7% Yield
The home of a late-night mainstay in the prime of world-famous Smith Street, Collingwood has sold for $1.7 million, on a sharp 3.7% yield.

Fitzroys agents Shane Mills and Ervin Niyaz sold 74 Smith Street, home to Smith Kebabs, on behalf of a private investor.

The sale price reflected a very high land rate of $11,258 per sqm.

A local private investor was the purchaser.

The property comprises a 3-storey 170sqm freehold building with ground-level takeaway kebab restaurant, basement preparation and storage and bedrooms on the upper level. It was offered with more than 5-and-a-half years remaining on the lease with a 5-year option to longstanding tenant Smith Kebabs, currently returning $67,237pa plus outgoings and GST.

“This was a really competitive campaign, with buyers looking to secure an excellent set-and-forget investment in the prime of one of Melbourne’s best lifestyle precincts. That was reflected in the sharp yield and high land rate,” Mills said.

“The ongoing interest rates rises have failed to deter investors when it comes to bricks-and-mortar assets with strong and secure income streams that are well-located in Melbourne’s shopping strips. They’re seen as a safe investment amid share market and residential market volatility.”

Niyaz said the buyer liked that the tenant complements the busy nightlife on Smith and Gertrude Streets.

Smith Street, named the World’s Coolest Street in recent years by influential global publication Time Out, and together with Gertrude Street forms an iconic hospitality and nightlife offering. The property is surrounded by some of Melbourne’s best bars, pubs and restaurants, with major traffic generators Fitzroy Beer Garden, Yah Yah’s, New Guernica, Caz Reitop’s Dirty Secrets, The Grace Darling, Builders Arms Hotel, Wabi Sabi Salon, Maha North, Huxtaburger, and many more in immediate proximity, Niyaz said.

Fitzroys Expands with Dedicated Presence in Development Site Market
As it celebrates its 50th anniversary, leading agency Fitzroys has continued its expansion, this time into the development site market with the appointment of specialist Andrew Lepa as an Associate.

Lepa joins Fitzroys after 4 years at Oliver Hume, where he established himself as an expert in broadacre and medium-density sales and acquisitions across Victoria, acting for a multitude of clients including private investors, developers and large property funds, and selling in the vicinity of $400 million worth of land.

“As Fitzroys celebrates its 50th anniversary it’s appropriate we take further steps to becoming an even more dynamic business,” said Fitzroys Director, Chris Kombi.

“This marks another timely step in Fitzroys’ expansion, and another example of the agency making a considered appointment of specialists in specific markets,” he said.

“We’ve been looking to establish a dedicated presence in this part of the market for some time and have been waiting to find the right people. Andrew has a proven record and developed a strong reputation throughout the industry, and we look forward to working with him and to the strong results he will deliver across Melbourne and Victoria for our clients.”

Kombi added, “This appointment is a great opportunity to leverage our existing client base and provide additional opportunities for our clients.

“Fitzroys is making this expansion at a time of an unprecedented housing supply and demand imbalance. Melbourne’s existing metropolitan development sites and land in its growth areas will be in high demand and require the facilitation of sales to expedite much-needed housing supply.”

Australia is forecast to have received a record intake of migrants of 400,000 in the 2023 financial year and 315,000 in FY24, for a total of 715,000 people, with many of these to settle in Melbourne and Victoria.

In the longer-term, Victoria’s population is forecast to grow more than 25% from 6.747 million in 2023 to over 8.454 million in 2041.

Lepa said, “I’m excited to be part of Fitzroys’ expansion and get to work in establishing the agency’s dedicated presence in the broadacre and infill development site market at a significant moment in time for the sector, and delivering strong results for its new and existing clients”.

Circa-$65m for Bunnings Collingwood Property
An investor has acquired the Bunnings Warehouse property in Collingwood for a reported figure of circa $65 million.

The 7,000sqm store, on a 5,375sqm site at 79-101 Victoria Parade, returns $3.12 million pa, which would reflect a yield of around 4.8%. It will have a 3.1-year weighted average lease expiry (WALE) on settlement.

The warehouse was developed out of a vacant 2-storey office building – once occupied by Kodak – in 2016. Bunnings and owners Holckner family, who acquired the property in 2005 for $30.7 million, together spent $46 million converting the 1980s building into a Bunnings store.

The store was part of Bunnings’ approach to open small stores in inner suburban locations such as Collingwood and Brunswick.

The sale price is the 3rd-highest paid for a freestanding Bunnings in Victoria, behind last year’s sale of the 21,670sqm Hoppers Crossing Bunnings property, struck on a 3.95% yield, and fund manager Newmark Capital’s $85 million acquisition in 2021 of the under-construction 18,626sqm Bunnings warehouse in Preston, on a 4.4% yield.

Golden Mile Showroom Sells for $30m
The Amart Furniture showroom on the “golden mile” precinct in Nunawading has sold for around $30 million.

The 7,185sqm showroom is on a 1.733ha site at 410-422 Whitehorse Road, next to Harvey Norman and near the intersection of Rooks Road.

Amart has a long-term lease over the property.

The vendor, SHL Nominees, paid $10.61 million for the property in 1999.

$14.6m for Altona Distribution Centre
A private investor has paid $14.6 million for a 6,733 sqm distribution centre occupied by high-vis clothing maker Portwest Pacific.

The sale price of 45-54 Burns Road reflected a 4.8% yield. Portwest Pacific’s lease returns $706,955pa.

The property is on an 11,576sqm infill landholding and was purchased new in 2011 for $7.2 million as a purpose-built design for Toyota subsidiary TTA Australia.

$12m for Epping Warehouse
Impact Designer Homes has sold a brand-new speculative warehouse in Epping to a private investor for $12 million, on a 5.73% yield.

The 4,172sqm facility at 8 Northpoint Drive is on a 6,266sqm site and has been leased to car engineering design specialist Premcar on a 3-year term returning $688,320pa, or $165/sqm.