Shop 2, 16 Liverpool Street, Melbourne
A medical specialist bought the 267sqm ground floor space for $2.48 million to occupy. It has been used as beauty and massage parlour.
Shop 5, 477-479 Burwood Highway, Vermont South
An owner occupier bought the vacant 95sqm premises for $900,000 to set up a laundry service. A veterinary clinic previously occupied the property.
344 Bay Road, Cheltenham
The 2-level, 220sqm building with ground floor retail and a 1st floor residence sold for 724,000. It is leased to a remedial massage business until April 2022 with an option and returns $40,170pa plus outgoings and GST.
642 Glenferrie Road, Hawthorn
Sweets and desserts eatery 99 Pancakes leased the 50sqm corner space for 4+4 years at $42,000pa net.
126 Elizabeth Street, Melbourne
A mobile phone repairer signed a 5-year lease over the 35sqm space at $86,000pa net plus GST, with a 3-month incentive.
1/101-105 Toorak Road, South Yarra
Identity Man Barberia signed a 3-year lease plus an option for the 45sqm space at $37,500pa.
480 Collins Street, Melbourne
A private investor bought the 17sqm strata office for $173,000 with serviced office provider APSO as the tenant.
14-16 Mason Street, Dandenong
Court Services Victoria leased 607sqm on level 2 for 10 years at $218,319pa. The 11-storey building is owned by Sandran.
10 Dimboola Road, Broadmeadows
The Victorian Government leased the remaining 405sqm of office space within the newly redeveloped Broadmeadows Town Hall, for 3 years at $170,000pa gross.
G9, 79 Manningham Road, Bulleen
An IT firm leased the 109sqm ground floor office within the Bulleen Corporate Centre at $26,500pa.
2-4 Mephan Street, Maribyrnong
An owner occupier in the IT hardware sector paid $10 million for the 8,364sqm office and warehouse on a 14,900sqm site. Zoned Industrial 3, it has 8 roller doors and 2,500sqm of hardstand.
24 Encore Avenue, Somerton
An owner occupier wanting to increase their northern market presence bought the 1,337sqm property for $1.736 million.
Unit 1, 12 Macro Court, Rowville
A local owner occupier bought the 280sqm office and warehouse for $601,000.
531 Somerville Road, Sunshine West
Tyre retailer and wholesaler Superior Tyres leased the 7,036sqm showroom and warehouse, formerly occupied by Tradelink, for 6 years at $330,000pa plus outgoings and GST.
David Jones Sells Bourke Street Menswear Store
David Jones has sold its Bourke Street menswear store to Newmark Capital for $121 million, and will use the proceeds to fund the refurbishment of its flagship department store opposite.
Newmark Capital will reposition the 1930s building at 299 Bourke Street as loft-style offices with retail on the ground floor.
Newmark Capital owns the Jam Factory complex in South Yarra, where it is planning a $1.25 billion overhaul that will comprise some 50,000sqm of new office space, as well as retail space, and an upgrade of its hospitality offering and the famed Hoyts cinema.
Its recent acquisitions include a new large-format retail centre in Warragul that is anchored by Bunnings and Kmart, for $51 million, and the Tooronga Village Shopping Centre for $62 million.
The South African parent company of David Jones, Woolworths Holdings, is undertaking a strategic review of the department store’s property ownership structure. These include the 310 Bourke Street store that is set for an upgrade, as well as its Elizabeth Street store in Sydney.
The 299 Bourke Street building was sold with a short-term leaseback.
Epping Trio Serves Up Safe Investments
Investors actively seeking income-producing assets continue to recognise well-located, securely-leased Melbourne retail and commercial properties as safe-haven opportunities.
Fitzroys’ Chris Kombi and Lewis Waddell have sold 3 strata retail properties within Lendlease’s Aurora Village in Epping for a combined $2.9 million. The sales reflected a tight average yield of 5.4% and high average building rate of $9,355 per sqm. Each has a long, secure lease in place with fixed annual rental increases.
301 Harvest Home Road is leased to national tenant Bottlemart on an 8+8-year lease. 305 Harvest Home Road is home to Mediterranean eatery Suburban Grill on a 7+7-year lease while 309 Harvest Home Road has a 5+5-year lease to Middle Eastern grocer Aurora Groceries.
Each shop enjoys dual frontages to Harvest Home Road and the shopping centre car park, which has 305 parking spaces.
Fitzroys has now sold over $150 million worth of retail and commercial property across Melbourne since March.
“In a period of uncertainty, low interest rates and share market volatility, investors across the market are looking for reliable sources of income and have continually shown an enduring confidence in Melbourne retail and commercial property,” Kombi said.
The properties sold to 3 separate purchasers, including self-managed super fund buyers and more experienced investors.
Kombi said strata-titled properties have grown in focus, offering an easier management proposition with an owners corporation overseeing maintenance, while low land tax liabilities don’t cut into the return.
He said SMSF investors have become prominent market participants, and have contributed further depth and competition to sales campaigns in addition to the pent-up demand for quality assets.
Waddell said the properties are each leased to food and beverage-based tenants that have been able to trade throughout the COVID-19 period.
“Prospective buyers recognised the defensive nature of these assets, giving them further confidence in their investment credentials.”
Aurora Village is located in the heart of Melbourne’s northern growth corridor, anchored by high-performing Coles and Aldi supermarkets, and is home to multiple national and popular local tenants including Anytime Fitness, Liquorland, Coles Express, Select Pharmacy, Degani, TGS, Tatts and Epping Medical Centre.
Fitzroys is now marketing a further two securely-leased retail properties within Aurora Village, and both are also leased to food and beverage tenants that are open for business. 303 Harvest Home Road has a 10+10-year lease to Harvest Pizza and Pasta, and 307 Harvest Home Road is leased to Aurora Butchers on a 5+5-year term.
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.