Weekly Wrap

Fitzroys Weekly Wrap - 28th Feb 2020

Posted on 28th February 2020

565 Doncaster Road, Doncaster
An investor bought the Dulux showroom for $5.3 million at a 4.3% yield. The 2-level 609sqm building, on a 955sqm site with basement parking, is leased to Dulux until 2024 with options.

85 High Street, Belmont
A local owner occupier paid $2.5 million for the former Hungry Jack’s restaurant of 350sqm, on a 1,184sqm site in Geelong.

66-72 Railway Street, Altona
The 2-storey 415sqm building, on a 397sqm corner site, sold for $2.24 million. Zoned Commercial 1 and partially vacant, it has 4 shops and 5 1st-floor offices and currently returns $138,000pa.

489 Church Street, Richmond
Marble retailer Stone Italia leased the 85sqm shop at $63,000pa net plus outgoings and GST.

140 Gaffney Street, Coburg North
SAJ Fitness will open a new gym after signing a 5-year lease plus options for the 460sqm building at $40,000pa.

88 Langridge Street, Collingwood
Co-working space operator CreativeCubes.Co signed on as anchor tenant of Peregrine Project’s $95 million 88L commercial building for its 5th Melbourne location. CreativeCubes took 3,000sqm of the 6,000sqm building for 10 years, at about $300/sqm. 88L will be completed later in 2021 and is part of the Langridge Lanes complex.

470 Collins Street, Melbourne
Four new tenants leased space within the Suleman Group-owned tower, at $390-$400/sqm net. Lextech leased 87.7sqm on level 1, Giorgannia & Liang Lawyers 111.7sqm on level 7, and Australian Financial Group took 85.7sqm and Collabera Technologies 139.1sqm, both on level 10.

11-21 Bunney Road, Oakleigh South
Peter Fountas of Virtus Property Group bought the 10,000sqm office and warehouse, formerly used by Linfox, for $12.5 million. The facility is on a 1.7ha site and will be refurbished and leased out.

14 Phoenix Court, Braeside
The 747sqm office and warehouse on a 1,143sqm site sold for $1.2 million.

35 Apex Drive, Truganina
The 2,272sqm block within the new industrial estate The Crossing sold for $829,280.

6/12 Marriott Street, Oakleigh
A local investor bought the 100sqm building for $430,000 at a 4.9% yield. It is leased on a monthly basis to a mechanic.

26-28 Hargreaves Street, Huntingdale
Wizard Automotive Systems Pty Ltd leased the warehouse for 6 months at $35,500pcm plus GST after hailstorms damaged cars and increased demand for repair services.

74-76 Logis Boulevard, Dandenong South
SpeedPro Industries signed a long-term lease at $233,700pa net for the 2,533sqm office and warehouse within the Logis Eco Estate.

6 Queen Street, Sebastopol
The childcare centre sold off-the-plan for $4.475 million. It is licensed for 118 places with a return of $306,800pa, and will be completed in March.

260 Cotham Road, Kew
Australasian Movement Disorder and Pain Surgery signed a 5+5-year lease at $155,000pa net plus GST.


Investors Snap Up Service Station Portfolio
Russell Withers’ 7 Holdings, owner of the 7-Eleven business, has sold off another national portfolio of petrol stations for around $78.2 million, taking the total tally from the sale of 33 sites across two tranches to around $156 million.

The most recent portfolio of 18 stores sold at a 4.9% average yield. All properties were sold with new 12-year net leases to 7-Eleven.

Victorian properties included the 6,480sqm site at 605 Boronia Road, Wantirna, which included 2,500sqm of vacant land and sold for $7.13 million at a 4.59% yield. The 3,273sqm site at 512 Pascoe Vale Road, Pascoe Vale with a 94m frontage sold for $4.775 million at 4.08%, and in Pascoe Vale South, 475-477 Bell Street sold for $4.91 million on a 4.48% yield.

The 1,585sqm corner site at 1441 Burwood Highway, Upwey changed hands for $3.25 million at 5.97%, and an outlet at Corio in Geelong sold for $3.455 million at 4.64%.

7 Holdings sold a first portfolio of 15 7-Eleven properties in October, for a similar combined total and at a yield of around 4.7%.

Developers Swoop on Eaglemont Site for Childcare Centre Play

Queensland-based developers Mike Wu and Shan Kuo have acquired another major Melbourne site for a childcare centre project, paying more than $12.8 million for 5,034sqm of land in Eaglemont.

Four owners combined their six adjoining residential sites to create the offering at 25-31 Banksia Street and 437-439 Lower Heidelberg Road.

The new owners, who operate Little Lane Learning and Avenues Early Learning Centre, plan to build a childcare centre and townhouses on the property. Last year, they bought the 3-level, 3,472sqm Summit House building opposite Westfield Doncaster for $20 million, where they will also build a new childcare centre.

They are also planning a $100 million childcare centre on a 9,500sqm site in South Melbourne that previously was earmarked for 1,000 apartments spread across 4 towers, and which they purchased for $61.8 million in 2017.


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 2020 Fitzroys.