Weekly Wrap

Fitzroys Weekly Wrap - 28th June 2024

Posted on 28th June 2024

92 Bay Street, Port Melbourne
A local investor bought the 75sqm strata-titled property for $980,000, on a 5.7% net yield. Oscar Charlie Hair has a 3 3-year lease returning $57,500pa plus outgoings and GST.

379 Chapel Street, Prahran
An investor bought the 336sqm building, occupied by KFC and Bodhi Thai Massage, for $5.258 million. It is on a 251sqm corner site zoned Commercial 1.

163 Toorak Road, South Yarra
Only Hospitality Group founder Julien Moussi paid $3.8 million for the vacant 432sqm 2-level hospitality building, which was formerly home to Rah Bar.

250 Coventry Street, South Melbourne
A local investor bought the 121sqm building for $1.82 million. It has a 1 5-year lease to Sammy’s Dry Cleaners.

111 Lower Plenty Road, Rosanna
The 154sqm property occupied by Bakers Delight sold for $943,000. The current 5-year lease ends in 2025 with options to 2035, and returns $36,853pa plus GST.

221 Drummond Street, Carlton
A private investor paid $6.66 million for the fully-leased 1,555sqm 2-storey building, which has 23 basement car parking spaces and is on a 1,011sqm corner site. Tenants include Carlton Medical and Urgent Care Clinic, Dental Health Services Victoria, and The Physio Guys, for a total return of $392,110pa.

39 Pine Street, Hawthorn
The 270sqm building with ground-level parking and storage area was leased at $69,500pa

11-15 Palmer Court, Mount Waverley
An offshore buyer bought the 2,474sqm facility across four buildings on a 5,028sqm site for $8.91 million, on a 5.69% net yield. Slade Health occupies the property on a lease running to December 2027 with options to 2037.

48-54 Weston Street, Brunswick
Existing café and warehouse tenant Brunetti Oro acquired the 1,600sqm single-level brick warehouse on 1,822sqm of land for $6.2 million. Brunetti Oro had been at the site since 2021, having signed a 5 5 5-year lease.

2 Kingston Town Close, Oakleigh
The 500sqm 2-level showroom and office building on a 1,698sqm site sold for $2.88 million to a local investor. It is leased to Rosemount Kitchens on a renewed 5-year lease returning $137,312pa net.

412-416 South Gippsland Highway, Dandenong South
Southern Euro, a dealer of new Fiat vehicles and used cars, leased the property at $171/sqm.

Lot 79, Unit 9E/36 Hume Road, Laverton North
The 183sqm warehouse unit was leased at $36,000pa.


24-30 Kent Road, Pascoe Vale

The 260sqm building on a 994sqm site with 10 car parks sold for $1.705 million. VetPartners has a newly-renewed 5-year lease plus options to 2035 returning $76,690pa.

89 Buckley Street, Moonee Ponds
An investor bought the 200sqm vet clinic building on a 374sqm site for $1.35 million. It is leased to VetPartners on a renewed 5-year lease with options, returning $68,959pa plus GST.


Rodd & Gunn Makes Melbourne Shopping Strip Debut
Church Street, Brighton, is again all but fully-leased after high-end menswear retailer Rodd & Gunn selected the perennial high-performer made its Melbourne shopping strip debut.

Fitzroys’ Mark Talbot and Tom Fisher negotiated the secure 5-year lease at 82 Church Street, at $150,000 per annum plus outgoings and GST following a highly competitive leasing campaign.

Rodd & Gunn is taking up the 189sqm space - a prime opportunity with unique walkway exposure - that was occupied for the past 15 years by Kookai, which has relocated to larger premises.

“This is Rodd & Gunn’s first Melbourne shopping strip location. Other sites are concession stores in Myer department stores,” Talbot said.

“It speaks volumes that Rodd & Gunn selected Church Street, Brighton for its first Melbourne shopping strip store. Church Street services one of Melbourne’s most established and affluent catchments, providing high levels of foot traffic and spending power,” he said.

“Church Street boasts a roll-call of respected and popular high-end fashion boutiques, national retailers, and eateries. There’s always a long queue of tenants trying to get into the strip, which has consistently recorded the lowest vacancy rate of all of Melbourne’s shopping strips.”

According to Fitzroys’ Walk the Strip report series, Church Street recorded the lowest vacancy rate in Melbourne in 2023, sitting at just 1.1% - well below the Melbourne average of 6.2%.

Rodd & Gunn’s tenancy is close to Assembly Label, Simone Perele, Decjuba, Edward Meller, and Elka Collective, which coincidentally were also leased by Fitzroys.

“There are clearly limited opportunities on Church Street and this property was in heavy demand. We saw a gap in the market to balance out the offering of women’s and men’s fashion,” Fisher said.

“This deal takes the strip to all but fully-leased. Melbourne’s shopping strips have demonstrated their resilience over recent years, and none more so than Church Street, Brighton,” he said.

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 2023 Fitzroys.