600 Chapel Street, South Yarra
A consortium including Chemist Warehouse founders Jack Gance and Mario Verrocchi paid $14.9 million for the 531sqm building, home to NAB, on a 373sqm site at the corner of Chapel Street and Toorak Road. The major lender is a long-term occupant and has a 5-year lease with 3-year options. Developer Bill McNee was the vendor.
81 Kingsway, Glen Waverley
The 177sqm shop, leased to bakery Bread King, on a 185sqm site sold for $4.3 million.
523 Middleborough Road, Box Hill North
The 94sqm building, home to Kerrimuir Noodle Bar, sold for $1.27 million with a lease expiring in 2026 with no options.
1/145 Gateway Boulevard, Epping
An investor paid $977,000 for the 91sqm property, which has a new 7-year lease plus options to The Pizza Studio, returning $54,600pa plus GST.
137 Moray Street, South Melbourne
The 540sqm building, on a 468sqm site with 16 car parks, sold for $3.5 million.
30 Oleander Drive, Mill Park
An investor paid $940,000 for the offices of Victorian Energy & Resources Minister Lily D’Ambrosio. The Parliament of Victoria has a renewed 4-year lease plus option to 2031 returning $63,004 plus GST.
2.01/203-205 Blackburn Road, Mount Waverley
The 65sqm suite with 2 basement car spaces was leased at $20,000pa, or $308/sqm.
502-520 Clayton Road, Clayton
Clayton Property Custodian Pty Ltd sold the 22,590sqm Industrial 1-zoned corner site, with a 3,910sqm office and warehouse facility, for $21 million to an owner-occupier.
10 Thompson Street, Abbotsford
A local owner-occupier bought the 605sqm auto mechanic warehouse for $2.805 million. The property is tenanted by Pickards Automotive on a short-term lease.
16 Link Road, Pakenham
Zoned Industrial 1, the 3,110sqm parcel of land sold for $2.15 million, at $691/sqm.
10 Gladstone Place, South Melbourne
A local developer with land banking intentions paid around $1.5 million for the 118sqm mechanics workshop. The property has a lease running to October 2025 with no further options returning $34,435pa.
4/16a Prosperity Street, Truganina
The 198sqm office and warehouse was leased at $30,000pa, or $152/sqm.
Another strong sale result on Toorak Road, South Yarra has been achieved by Fitzroys as investors continue to pursue quality opportunities along Melbourne’s shopping strips.
In the latest deal, Fitzroys’ Lewis Waddell and Ben Liu 刘犇 sold 80 Toorak Road, following a successful auction campaign, for $2 million, on a sharp 3.8% net yield.
The 120sqm building was offered with a brand-new 5-year lease to Toorak Road mainstay Avoca Hill Bookstore.
It is on a 162sqm site in a prime South Yarra location surrounded by local and national tenants including Australia Post, Mecca, Kidstuff, Gum Tree Good Food, OPSM, Melbourne institution France Soir, Bar Carolina, Neds Bake and many more.
“This is one of the sharpest yields achieved this year to date for a prime Melbourne shopping strip investment,” Waddell said.
“There are buyers out there who are willing to purchase on tighter yields for properties in prime positions within blue-chip strips, as the risk of vacancy is lower and they can rely on a secure income. This purchaser was looking for a long-term play and was also encouraged by the property’s position within a shopping strip that is experiencing a period of generational renewal. Developments on and around the strips are underpinning future trade and rent prospects.
“Vacancies have already been measured at a long-term low along the shopping strips as Melburnians spend more time than ever at their local villages.”
According to Fitzroys’ latest Walk the Strip report, Toorak Road, South Yarra vacancies have nearly halved since 2021, from 10.1% down to 5.6% in 2023.
Fitzroys has now sold more than $20 million worth of prime shopping strip retail assets on Toorak Road recently. Among those transactions was the $5.15 million sale of 91-93 Toorak Road, South Yarra, home to La Porchetta and an optometrist, on a very sharp passing net yield of 1.8%, and the $2.16 million sale of 17 Toorak Road, occupied by La Parisienne Café and Charcuterie, on a 3.7% yield.
Liu said 80 Toorak Road is located at the entrance to Avoca Street and the Domain Hill residential enclave, is well-positioned to South Yarra train station, and surrounded by many key developments that will continue to make South Yarra more dynamic. These include the ongoing development of the nearby Forrest Hill precinct, taking in Greystar’s new $500 million build-to-rent project, as well as Oreana’s $250 million redevelopment of South Yarra Square, V-Leader’s $90 million Hotel Claremont revamp, and Gurner and Qualitas’ $2.75 billion overhaul of the Jam Factory.
Liu noted that Asian heritage and Asian capital-backed buyers were particularly prominent in the enquiry and bidding for 80 Toorak Road.
“Asian heritage buyers are certainly among the most active buyer groups in the current market,” he said.
“They continue to be particularly keen on investments throughout Stonnington and Melbourne’s shopping strips.
“Fitzroys has been tracking and servicing these buyers and they have been active in campaigns and participating in our auctions, with the outcome being added competition and strong results for our clients.”
Elanor and PGIM Snap Up Major Industrial Infill Site
A Woolworths storage facility site neighbouring Waverley Park in Mulgrave will be redeveloped into a 113,000sqm logistics estate, after being acquired by Elanor Investors Group and US-based PGIM Real Estate for around $200 million.
The 19ha site at 522-550 Wellington Road is currently improved by a 68,000sqm facility that Woolworths will exit at the expiry of its lease in 2026.
Elanor and PGIM’s plan to then develop a $600 million last mile logistics estate on the site.
The vendor was Harry Stamoulis, who acquired the property in 2017 for $90.75 million.
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.