97-103 Elizabeth Street, Melbourne
The 4 strata-titled properties, covering a combined 736sqm on the ground floor of the Ibis hotel, sold for around $14.9 million, on a blended yield of circa 5.5%. They are occupied by Betty’s Burgers, Zambrero, Chinese restaurant Decennium Australia, and café Madamimadam.
1033-1035 Centre Road, Oakleigh South
An investor bought the petrol station site occupied by EG Fuel for $4 million, on a 6.25% yield.
6 Balmain Street, Cremorne
The 135sqm property, occupied by café HomeGround, sold for $780,000 on a 6.28% yield. HomeGround has a 5-year lease from August 2023 that returns $50,000pa plus outgoings and GST.
6 & 7/74-82 Maroondah Highway, Ringwood
Located within the Ringwood Homemakers Centre, the 1,288sqm showroom was leased at $324,354pa, at $252/sqm.
138 Thistlethwaite Street, South Melbourne
A local owner-occupier bought the 350sqm building, which is on a 185sqm Capital City-zoned site, for $2.2 million.
108 Railway Avenue, Ringwood
A chiropractor acquired the vacant 160sqm building, on a 235sqm site, for $1.275 million.
18/71 Victoria Crescent, Abbotsford
The 2-storey 300sqm riverfront office with 8 on-site car parks was leased at $120,000pa, or $364/sqm.
4 Nicole Close, Bayswater North
The 1,395sqm office and warehouse, on a 2,258sqm site with 21 car spaces, sold for $3.6 million.
4/200 Wellington Road, Clayton
The tenant of the 797sqm office and warehouse unit, Mills Freight, acquired the property for $2.57 million, on an equivalent yield of 5.55%.
Warehouse 20/158 Canterbury Road, Bayswater North
The 158sqm office and warehouse unit sold for $701,500.
10 Yallourn Parade, Ringwood
The 680sqm single-level warehouse, which includes a 32sqm office component, was leased at $60,000pa, or $88/sqm.
1228 Leakes Road, Tarneit
Property developer Salvo acquired the 61.55ha site for $73 million, where it plans to build a 1,700-home master-planned community with joint-venture partner Casey Capital.
466-468 Sayers Road, Tarneit
Formerly occupied by ASX-listed G8 Education, the childcare centre facility over 2,919sqm with an existing permit for 127 places was leased for 15 years at $406,400pa.
PowerPlay Thunders Into Victorian Market
Go-karting and indoor entertainment centre operator PowerPlay has entered the Victorian market after leasing a Moorabbin warehouse in a long-term deal.
Fitzroys’ Brent Glassford and Marco Sandrin negotiated the 7-year lease at 94-98 Cochranes Road on a strong rental rate.
The 2,033sqm high-profile warehouse is now home to PowerPlay’s first interstate expansion venue, comprising a 2-level go-kart track offering an eco-friendly experience with electric karts.
PowerPlay offers competitive racing, and hosts birthday parties and corporate groups and functions.
It has locations in Perth’s Bibra Lake and Joondalup.
“The long-term deal shows confidence in the evolving area,” Glassford said.
“PowerPlay was attracted to the venue’s proximity to the Morris Moor complex, which has seen the transformation of the former Phillip Morris factory into the area’s premier hospitality hub.”
Sandrin said entertainment and gaming venues taking up space have been particularly active in the post-COVID leasing market.
“People are seeking lively in-person experiences when they get away from the home or the office. The entertainment and gaming sub-sector has underpinned strong demand for functional warehouse space.”
Mitsubishi Estate Partners with ESR on $175m Industrial Estate
Japanese property company Mitsubishi Estate Asia is partnering with ESR on a $175 million logistics estate in Pakenham. They will develop 70,000sqm of facilities on the 12.1ha site at 92 Enterprise Road.
A 12,600sqm facility is under construction and has been pre-leased to a global textile manufacturer.
The estate marks Mitsubishi Estate Asia’s first investment in Australia’s industrial sector. To be known as Enterprise Industry Park, the estate will be placed within a special purpose investment vehicle 80% owned by Mitsubishi Estate Asia, while ESR will own the balance and manage the project.
ESR earlier this year teamed up with Frasers Property Industrial to buy 64.4ha of land at 635 Hall Street in Cranbourne to develop a $900 million industrial estate.
In recent weeks, Elanor Investors Group and PGIM Real Estate acquired a Woolworths storage facility site neighbouring Waverley Park in Mulgrave that they will redevelop into a $600 million, 113,000sqm logistics estate.
The 19ha site at 522-550 Wellington Road is currently improved by a 68,000sqm storage facility that Woolworths will exit at the expiry of its lease in 2026.
Melbourne Office Vacancy at 18%
The latest bi-annual statistics from the Property Council of Australia show the Melbourne CBD’s office vacancy lifted from 16.6% to 18% over the past 6 months.
The increase was partly driven by the addition of 69,000 of new premium-grade space to the market. Nearly 250,000 sqm of new supply is forecast to be added to the Melbourne market by 2026. About 20% of that is already pre-committed to future tenants.
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.