282-284 Carlisle Street, Balaclava
An offshore investor paid $4 million on a 4.25% yield for the 325sqm building, which is occupied by Commune Group’s Moonhouse restaurant on a 10+5+5-year lease.
51A Main Road, Monbulk
The 248sqm premises occupied by a Cellarbrations liquor store sold for $1.2 million. Cellarbrations has a 10-year lease to May 2029 plus options to 2039 returning $62,195pa plus GST.
Shop 20, 674-680 Glenferrie Road, Hawthorn
The 45sqm strata premises occupied by Shades of Fades sold for $740,000, on a 5.57% yield. The hair salon has a 3+3-year lease returning $42,436pa.
3-5 Merlyn Street, Coburg North
The 185sqm single-level shop and dwelling on a 241sqm site sold for $565,000.
15-17 Shierlaw Avenue, Canterbury
A tech business owner-occupier bought the 2,345sqm 2-level office building for $9.25 million. It has 74 basement car parks and a 5-star NABERS rating, and is on a 1,671sqm Commercial 1-zoned site.
Suite 106, 270-272 Barkly Street, Brunswick
A local legal firm bought the 97.2sqm strata suite for $640,000 with plans to occupy
24 Doriemus Drive, Truganina
A private developer bought the site within Axiom Estate for $7.396 million, with plans to develop 4 warehouses.
164 Derrimut Drive, Derrimut
The 779sqm office and warehouse on 1,079sqm of land sold for $2.15 million.
210-212 Edwardes Street, Reservoir
Offered with vacant possession, the 924sqm office and warehouse on 925sqm of Industrial 3-zoned land sold for $1.76 million.
11-13 Thompson Street, Abbotsford
A local investor bought the 402sqm warehouse on a 470sqm site for $1.575 million.
141 Christmas Street, Fairfield
Vehicle repair service Eaglemont Automotive leased the 836sqm sawtooth warehouse building in a 5+5-year deal at $115,000pa net.
21 Terra Cotta Drive, Blackburn
The 507sqm office and warehouse was leased for $76,000pa, at $150/sqm.
443-445 Nicholson Street, Carlton North
Zoned Neighbourhood Residential, the 836sqm corner site sold for $2.39 million.
2201-2209 Point Nepean Road, Rye
The vacant 1,203sqm Commercial 1-zoned site, which has a 470sqm building previously used for hospitality purposes, sold for $2.35 million.
32-34 Kangerong Road, Box Hill
An investor paid $6 million for the 46-room student accommodation facility, which is on a 2,842sqm site with General Residential 3 zoning.
Charter Hall Invests Again in Booming Melbourne Location
ASX-listed property heavyweight Charter Hall has acquired the freehold of popular pub Harlow, located in one of Melbourne’s hottest lifestyle locations and leased to one of the country’s premier operators in Australian Venue Co. (AVC).
Fitzroys’ Paul Burns and Chris James sold the historic 447 Church Street, Richmond.
The property comprises a 1,100sqm building, with a ground floor bar and dining space, a sprawling split-level beer garden, rooftop bar, and neon-drenched basement bar. It is on a 485sqm corner site with more than 45 metres of frontage to Church Street and Lesney Street.
AVC’s 25-year lease runs to 2039 with 2 10-year options, currently returning $516,785pa net with 3% annual increases and a market review at option.
Burns said, “This was one of Melbourne’s premier pub offerings in 2024, recognised by private players through to major institutional investors as really good real estate,” Burns said.
The sale price of $9 million reflected a 5.75% yield.
“It’s incredibly rare for an asset like this to be offered, particularly at this pricing.
“The investment fundamentals are extremely strong - featuring a mostly net lease with a 25-year term and long options to one of Australia’s best hotel operators.
“We expect the yield will tighten again as the economy stabilises, while the asset in the meantime offers guaranteed income from a blue-chip tenant with fixed increases.
“This simply represented good real estate in a booming location,” Burns said.
The acquisition represents another investment from Charter Hall into the precinct, following on from their nearby development of Australia Post’s new headquarters.
AVC owns and operates a total portfolio of 215 venues across Australia and New Zealand, including St Kilda’s famous The Esplanade Hotel.
The $50 billion alternative investments- focused firm PAG earlier this year completed a $1.45 billion deal to take an 80% controlling
stake in AVC, effectively valuing the business at more than $1.81 billion.
“This result is yet more evidence of the incredible resilience that Australia’s hotels market has shown over the past few years,” Burns said.
The property is on a prominent corner site within the highly sought-after commercial precinct of Cremorne, which has a high concentration of international headquarters, co- working spaces and creative spaces. Major commercial occupiers in and around the area include Carsales, Seek, Disney, Tesla, NDIS, MYOB, Adidas, Australia Post, Red Energy, Reece, 7-Eleven, Uber, Mattel, REA Group and 2XU.
Nearby is Swan Street and Church Street, where a multitude of restaurants, cafés and bars create what is recognised as one of Melbourne’s best hospitality precincts. The commercial and lifestyle markets have attracted many Melburnians looking to live, work and play in the inner city, resulting in a surging local catchment living in new high-density residential dwellings.
Meanwhile, East Richmond Train Station is diagonally opposite the property, and numerous nearby tram stops along Church Street and Swan Street further enhance its accessibility and amenity.
“The commercial, lifestyle and location fundamentals of the area clearly encourage strong market participation across a range of sectors, from office developments through to pub investments,” Burns said.
The building at 447 Church Street has been occupied as a licensed premises since the 1850s. Prior to AVC’s refurbishment and operation was The Great Britain Hotel - or The GB, as it was affectionately known - a local institution that in past decades was an early champion of craft beers and hub for live local music.
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.