FItzroys Weekly Wrap - 17th July 2020

Posted on 17th July 2020

319-321 Clarendon Street, South Melbourne
The 2-level 229sqm retail and office building on a 209sqm corner site sold for $3.35 million, at a 4% yield. The ground floor has 2 shops, leased to a nail salon and barber with options of 3 years and 5 years respectively, and the office is leased until 2022.

29-31 Brentford Square, Forest Hill
An investor bought the 268sqm newsagency building on a 441sqm site for just under $2.4 million, at a 3.5% yield.

19 Fitzroy Street, St Kilda
A local buyer paid $555,000 for the vacant 63sqm strata property within the Summerland Mansions complex.

175 Chapel Street, Windsor
Greek restaurant Achilles Foods Windsor signed a 10-year lease with options for the 142sqm building with ground floor retail and 1st floor residence at around $62,000pa net.

250 Johnston Street, Abbotsford
Boutique furniture start-up It’s Nice Inside signed a 3-year lease at $34,000.

35 Wellington Street, St Kilda
An owner occupier bought the 69sqm space with 2 parking spaces for $345,000. It is on the ground floor of a newly completed 3-level apartment building.

Level 5, 443 Little Collins Street, Melbourne
IT recruitment firm Logical Resources leased the 58sqm office at $600/sqm gross.

269 Centre Road, Bentleigh
A financial services group leased the 164sqm space, within a corner office complex, for 4+4 years at $45,000pa net.

14-16 Queens Avenue, Hawthorn
An owner occupier bought the vacant 280sqm brick warehouse building on a 318sqm site for $1.975 million.

15 Cambria Road, Keysborough
The 811sqm building on a 1,320sqm site sold for $1.137 million. It is leased to a scrap metal recycler and returns $55,482pa net.

18a Metrolink Circuit, Campbellfield
A local transport company leased the 1,356sqm property for 2+2+2 years at $112,000pa.

91-93 Canterbury Road, Heathmont
A childcare developer paid around $3 million for the 1,672sqm site, which currently has a commercial building and potential to be used for residential and aged care developments. The vendor was a local investor.

Woolworths Leases Sites for CBD Expansion
Supermarket Woolworths is opening new CBD stores, leasing sites on Exhibition Street and Queen Street.

It will open a 750sqm mini metro offering on the ground floor of LaSalle Investment Management’s 30-storey tower at 222 Exhibition Street, leasing the space at between $500,000 and $550,000pa.

At 350 Queen Street, Woolies will open a 2-level supermarket in the lower floors of Chinese developer 3L Alliance’s new building.

They follow the recent opening of its smallest CBD store to date, at 220sqm within Dexus’ 39-level office building at 360 Collins Street. That deal was struck at $160,000 to $200,000pa.

$12m for Defensive Investment Dan Murphy’s
A Dan Murphy’s liquor outlet in Chirnside Park, has sold for more than $12 million on a circa-4% yield as investors seek defensive retail and commercial property.

The 1,387sqm Dan Murphy’s is on a 5,917sqm site on the corner of Fletcher Road and Maroondah Highway, and is leased for 15 years from December 2017 plus options. Current base rental is $493,436pa plus GST, and the tenant also pays turnover rent.

South Melbourne Office Building Sells
A local syndicate has bought a 5-level South Melbourne office building for around $14 million as a value-add play.

The 4,528sqm building at 71-73 Palmerston Crescent sold partially vacant with a short weighted average lease expiry, and the new owners will refurbish the building. There is a ground floor café and 40 basement and ground level parking spaces.

It is located near Kings Way, Albert Park Lake and the top of St Kilda Road, as well as the future site of the Anzac Metro tunnel train station. Nearby, the Royal Australian and New Zealand College of Obstetricians and Gynaecologists has just bought the 7-level office building at 1 Bowen Crescent for more than $19 million from investor Brendan Sullivan, just over 6 months after he paid around $17.8 million for the asset, and Flight Centre sold its headquarters at 436 St Kilda Road in May for $62.15 million to Shakespeare Property Group, in a deal negotiated by Fitzroys Director Paul Burns.

Footscray Childcare Centre Nets $11.5m
The Agosta family has sold the recently completed Nino Early Learning Adventures childcare centre in Footscray for $11.5 million, at a 5.8% yield

The new owner is a local investor and a first-time childcare centre buyer.

Zoned General Residential, the 1,330sqm triangular corner site is leased until 2045 including options and returns $675,000.
Last month the Guardian Early Leaning centre in Oakleigh East changed hands for $8.08 million, at a 5.4% yield and with a 15-year lease beginning in 2016.

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 2020 Fitzroys.

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