Weekly Wrap

Fitzroys Feature Properties - 13th November 2020

Posted on 13th November 2020

62-64 Little Latrobe Street, Melbourne
A local investor bought the vacant 3-storey, 368sqm building on a 123sqm site just off Swanston Street for around $4 million. The vendors were the owners of education group iAscend Polytechnic, who paid $2.2 million for the building in 2013.

1341 Dandenong Road, Chadstone
Developer Blueways group signed a 7-year lease over 625sqm of space within Chadstone Tower One at $600/sqm net.

2/34-36 King William Street, Broadmeadows
Energy company Jemena sold its old 1,500sqm office building for around $3.25 million to a mixed-use developer. The 1.38ha site is within the Broadmeadows urban renewal precinct. Jemena is moving into a new 9,500sqm building next door.

1360 Toorak Road, Camberwell
An owner occupier with future redevelopment plans bought the 1,080sqm vacant showroom, formerly occupied by Cash Converters, for $3.91 million. It is on a triple-fronted 921sqm site.

317-325 Raymond Street, Sale
The dual-tenanted 865sqm showroom sold for $1.888 million at a 6.91% yield. Pets Domain has a 5-year lease until April 2023 with options to 2043, and Direct Appliance Rentals’ lease runs to February 2021 with a 2-year option, for a combined return of $130,538pa plus GST. The building was refurbished in 2013 and is on a triple-fronted 737sqm site, zoned Commercial 1.

684 High Street, Reservoir
An owner occupier bought the 127sqm vacant shop on a 205sqm site for $763,000.

462 St Kilda Road, Melbourne
Moyan Authentic Taste will open an afternoon tea venue, trading as Jishan, signing a 5-year lease for the fully-fitted 390sqm space at $240,000pa gross. The building was constructed in 1890 as a 16-room brick house for bookmaker Leon Cohen and has recently been used as a wedding reception centre.

172 Swanston Street, Melbourne
Taiwanese milk tea business Xin Fu Tang leased the 75sqm space at $240,000pa gross on a 5+5-year term for its 2nd Melbourne CBD store.

345 Bridge Road, Richmond
Workwear retailer RSEA Safety leased the 979sqm showroom next door to Richmond town hall at around $600/sqm. Yarra Council bought the 3-level building in 2014 for $14 million.

Unit 6, 100-104 Pipe Road, Laverton North
The 950sqm office and warehouse sold for $1.11 million.

4-10 Winterton Road, Clayton
Wanting to relocate to a larger premises, visual merchandising company Abacus Visual Solutions leased the 1,388sqm office and warehouse for 7 years plus options at $115,000pa.

384-386 Canterbury Road, Surrey Hills
An owner occupier bought 2 adjoining period terraces together for $2.1 million and will convert the combined 305sqm of floor space into a medical clinic.

Investment Activity Returning to Melbourne’s CBD
As Melbourne reopens after lockdown, a Singaporean investor has spent around $65 million buying the landmark Louis Vuitton building in the city’s famous Paris End of Collins Street.

Built in 1886, the 4-storey building at 139 Collins Street, on the corner of Russell Street and next to the Grand Hyatt hotel, has a National Trust classification and was once home to private women’s club, the Alexandra Club.

Louis Vuitton prominently occupies the ground floor within the renowned luxury retail strip. Law firms and financial businesses occupy the levels above within the 1,633sqm building.

The vendors were the Kearney family, who sold city retail icon the Block Arcade in 2014 for circa $100 million.

Unprecedented Hampton Street Development Site
A generational opportunity to deliver a premium development in the heart of popular shopping and lifestyle strip Hampton Street, Hampton has come to the market.

Fitzroys agents Mark Talbot and Shawn Luo are marketing 466-476 Hampton Street, within the iconic Hampton Hill precinct, via Expressions of Interest closing Thursday 26th November at 4pm. The historic campaign marks the first time this property has come to the market.

The substantial 1,358sqm site offers rear access from both Mills and Willis Streets, and has exceptional frontage nearly 30m. Zoned Commercial 1, it offers a highly attractive DDD 012 Development Overlay promoting 4-storey developments, with potential to add further levels and capture bay views.

The site currently comprises 6 separate shops ranging from 75sqm to 94sqm, some occupied on monthly tenancies, others vacant, and 1 with a longer-term tenancy that is subject to a development clause.

“This is a genuine generational opportunity to acquire a site of this magnitude located within the popular Hampton Hill precinct,” Talbot said.

“The site’s attractive Commercial 1 zoning and size offer an unprecedented opportunity to deliver a premium project in the prime of Hampton Street, with the potential to develop a multi-level commercial, residential or mixed-use complex in one of Melbourne’s iconic shopping strips.”

Talbot added that the property also offers valuable holding income for land bankers and developers while they assess the site’s potential and plan any future projects, as well as value upside for investors.

“Accessibility and lifestyle amenity have become major attractions for residents and businesses looking for new locations during the COVID period, as the make-up of Melbourne’s working arrangements is reshaped.”

The site is located in the prime trading section of Hampton Street, surrounded by popular users including Discount Chemist, Westpac Bank, Family life, Bank of Queensland, Australia Post, BWS and a strong presence of established local traders. It is in close proximity to the high-performing Woolworths Supermarket and an abundance of public car parking nearby.

“We expect more Melburnians to be working from home and shopping locally over the long-term,” Talbot said.

“People across Melbourne have been reconnecting with their local communities. At the heart of these are Melbourne’s iconic shopping strips.

The location is well-serviced by public transport, with bus services operating along Hampton Street and the Hampton Train Station just 400 metres away.

Luo said the suburb has been attracting a younger demographic moving out of the affluent suburbs of Brighton and Beaumaris along the bay, increasing demand for medium and high-density residential projects along and in the immediate vicinity of the strip.


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.