222 Glenferrie Road, Malvern
An offshore investor paid $3.2 million for the 2-storey 304sqm building on a 192sqm site. The ground floor is leased to retailer Australian Red Cross on a new 5-year term, and there is a separately-leased first-floor residence.
1589 Thompsons Road, Cranbourne North
An investor bought the 2,006sqm Ampol petrol station corner site for $5.3 million, on a 6.21% yield. Jasbe Petroleum has a new 12-year lease with options to 2056 which brings $327,054pa plus GST.
363-365 Bridge Road, Richmond
An owner-occupier bought the 232sqm building, comprising 2 shop/offices, for $2 million. The building is on a 270sqm site with a 9.2m frontage.
2/150 Kelletts Road, Rowville
The 99sqm property occupied by an Amcal Pharmacy sold for $1.37 million. The renewed 5-year lease returns $62,000pa plus outgoings and GST.
417-431 Ferntree Gully Road, Mount Waverley
An investor bought the 1,779sqm office complex on a 5,360sqm site for $8.3 million. It comprises 9 fully leased office units, with tenants including Quantum Technology (Vision Australia) and Ignite Healthcare, and is zoned Special Use.
Unit 12, 45 Vere Street, Richmond
A Sydney-based investor bought the 201sqm office unit from Wilmac Properties for $1.725 million, on a 5.5% yield.
252 Proximity Drive, Sunshine West
A local owner-occupier paid $4 million for the 1,235sqm warehouse, on a building rate of $3,239/sqm.
133 Radnor Drive, Deer Park
The vacant 1,117sqm office and warehouse facility, on a 1,725sqm site with 13 car parks, sold for $2.975 million.
Warehouse 4, 51-59 Hudsons Road, Spotswood
The 481sqm office and warehouse unit sold for $1,013,500. It has a new 3+3+3-year lease returning $65,000pa plus GST.
3/14 Bruce Street, Mornington
An investor paid $730,000 for the 329sqm mechanic’s workshop building, which has a 3-year lease to June 2027 returning $34,169.64 plus outgoings and GST.
203-205 Canterbury Road, Heathmont
An investor bought the Grow Early Education-leased childcare centre for $12.01 million, on a 5.83% yield.
Former Izakaya Den Space Set For New Chapter As Hospitality Operators Jump On CBD Revival
The former home of Melbourne city hospitality icon Izakaya Den is set for a new chapter, with its lease to a new venue headlining a raft of deals as hospitality operators continue to re-energise the Melbourne CBD.
Fitzroys’ Franklin Gikas and James Lockwood negotiated the lease of Basement 3, 114 Russell Street, which for 15 years was home to the famous Japanese venue Izakaya Den.
It will become a new high-end Japanese restaurant and bar Miyazaki Gyu, specialising in Wagyu beef, open from 12pm until late, after being leased to an operator who has been in the hospitality business for, synergistically, 15 years.
Their previous venues include renowned Hash Specialty Coffee, modern restaurant Whitehorse Chloe, café Platform 7, and Hot Pot on Lonsdale.
This is their first return to the large-scale restaurant scene after a hiatus during COVID, during which they focused on supplying meat and seafood to restaurants.
“The new operator advised they were drawn to the space due to the fact it had been an established restaurant with a great reputation in Izakaya Den, and had the kitchen equipment and infrastructure in place to provide a platform for their vision,” Lockwood said.
The fully fitted space was lease for three years with a three-year option at $165,000 per annum net, representing a record basement per sqm rate for a CBD hospitality premises of this size.
Gikas and Lockwood negotiated the deal on behalf of the space’s owners, who are overseas investors.
Hospitality driving recovery
The former Izakaya Den space headlines a number of new leases to hospitality operators in the CBD.
“We’re still seeing plenty of interest for properties with hospitality infrastructure in place, which provide and time- and cost-effective avenue for operators to set up in new locations,” Gikas said.
“Enquiry and dealmaking have really picked up in the lead-in to Christmas”.
“We’re expecting a positive start to 2025 as we see more mandates from companies for their workers to return to the office, which will increase patronage in the CBD and support hospitality operators and retailers.”
Among the other leases, dynamic new concept Peck’s Road will enter the CBD in a prominent laneway location at Shop 3, 234 Flinders Lane, following a competitive leasing campaign that generated more than 10 offers.
“The depth of enquiry and quality in the campaign demonstrated the strong demand for laneway spaces close to the entrance of the new Town Hall Metro Tunnel station,” Gikas said.
Peck’s Road takes its name from the street where brothers and founders AJ, Arbi, and Albin Lawang grew up. This upcoming venue marks their second venture as they bring their distinctive offering to the heart of the CBD.
This project will be a collaborative effort with Michael Mabuti, renowned for his work with Filipino restaurant Askal, ice creamery Kariton Sorbetes, and South Indian restaurant Toddy Shop.
“The historic charm of Manchester Lane, combined with the vibrant energy of the city, made it the ideal location for their expansion. We saw a period of innovation across the CBD following the recession of the 1990s, and we’re currently seeing a similar pattern of new hospitality venues opening and laneways being activated as inner-city living takes off again,” Lockwood said.
Gikas said that in a trend also being seen in some suburban Melbourne shopping strips, operators are looking to get ahead of the curve and committing to long-term deals ahead of an improved economic outlook in the coming years.
At the recently-refurbished 124 Exhibition Street, Tori’s Bakery Cafè leased a space on the Ground Floor at the recently-refurbished 124 Exhibition Street on a long 7+5-year term, following a competitive campaign that generated significant interest and multiple offers. The owners selected Sutinee Suntivatana, a seasoned operator with a proven track record managing prominent CBD venues, to complement and enhance the amenity for the creative office tenants above.
Suntivatana has established several popular Melbourne venues Humble Rays, Tori’s, restaurant Regale and bar Galer, and Burapa.
Quick-service restaurant Shuji Sushi is continuing its expansion in the CBD, committing to a long eight-year deal over space at R16, 405 Bourke Street, and will compliment existing operators at Makers Lane including Le Yeahllow, Cookie Box, Supernova, and Brothers & Co.
“Shuji Sushi continues its expansion across the CBD, seeing a strong rebound post-COVID. Anticipating a potential decrease in interest rates, the brand is strategically positioning itself to capitalise on more favourable market conditions projected for 2025 and 2026,” Lockwood said.
Underpinning the strength of the resurgence in hospitality, longstanding CBD tenant Kim Sing has grown into a larger tenancy - taking Shop 17 & 17A, 113 Swanston Street within the Capitol Theatre building, in another long-term deal. It signed a 5+5-year lease over 150sqm plus a basement space, giving it the flexibility needed to accommodate both dine-in covers and quick-service operations. The operator has over 15 years’ experience.
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.