Fitzroys Weekly Wrap - 26th March 2021

Posted on 26th March 2021

53-55 Barkly Street, Mornington
A local investor bought the fully-leased 9-shop Barkly Square complex for $12.8 million. The 1,015sqm centre is on a 2,029sqm site and returns $517,777pa net plus GST. Tenants include The Cheesecake Shop, Manhattan in Mornington, Beaches of Mornington and Gods Kitchen.

108 Maling Road, Canterbury
An investor paid $2.6 million for the vacant 218sqm shop and dwelling on a 434sqm site.

Shop 1, 56 Cotham Road, Kew
The 215sqm ground floor strata space sold for $2.45 million at a 4.4% yield, with a 10-year lease to Sports, Podiatry & Physiotherapy returning $110,000pa plus GST. It is within The Alexandra apartment complex, completed last year by Franzé Developments.

810 Glenferrie Road, Hawthorn
Downtown Grocery Two Pty Ltd, part of the Crown Asian supermarket chain, leased the 435sqm space for 7 years at $127,500pa net.

488 Bourke Street, Melbourne
A law firm bought the vacant 353sqm office on level 10 for $2.85 million. It had been owned for 13 years by a company associated with barrister’s clerk John Dever, who runs the 160-year-old Dever’s List of barristers. An associated business, The McPhee Mediation had been operating from the office.

288 Sydney Road, Coburg
A local investor paid $1.3 million at a 5.21% yield for the 324sqm, 2-level building on a 220sqm site, which has direct vehicle access. It is leased to 2 tenants, CSM Advisors and NDIS registered provider Community Engagement and Innovation Network, returning $67,836pa net.

101 Moray Street, South Melbourne
Global software firm Xplor leased all 1,649sqm on level 5 of Deague Group’s new office building, for 7 years at between $550 and $600/sqm. Other new tenants include Adobe, over 527sqm, and advertising company Ooh! Media.

75 South Gippsland Highway, Dandenong South
B.I.A. Developments divested the 38,900sqm block for $15.462 million. It has a 3,400sqm warehouse and a 6-year weighted average lease expiry to national tenant Onsite Rental Group, returning about $800,000pa.

Lots 14, 15 & 16, 10 Jersey Road, Bayswater
A local investor bought the 3,314sqm single-level brick factory for $3.75 million at a 5.48% yield. Australian Spa Covers has a lease that returns $192,000pa, and the 5,000sqm site has more than 40 parking spaces.

28 Collins Road, Dromana
The vacant 235sqm office and high-clearance warehouse on a 1,097sqm site sold for $1.16 million.

1 Bibby Court, Moorabbin
Zoned Industrial 1, the vacant 520sqm building on a 720sqm site sold for $1.086 million.

250A Ingles Street, Port Melbourne
Electrical products supplier MMEM Group signed a 5-year lease at around $160/sqm for the 2,230sqm warehouse, which is owned by Herzog Group.

44 Lacey Street, Croydon
A wholesale distributor of packaged dry goods leased the 347sqm warehouse for 5 years at $35,000pa net.

506-508 Plenty Road, Mill Park
Looking for larger premises, Valley Osteopathy signed a 5-year lease at $71,600pa for the 214sqm office suite, which was formerly occupied by Love & Company Real Estate.

Riverdale Village Shopping Centre Celebrates Monumental Achievement
A year on from becoming one of the only shopping centres in Australia to open amid the COVID-19 outbreak, Riverdale Village Shopping Centre has held a celebration day to officially welcome its retailers to the community.

Fitzroys Shopping Centre Manager, Simone Talarico watched the centre come to life from the construction process, through to the opening in March 2020, and oversaw its operations through the depths of the pandemic and Melbourne’s reopening.

"It was fantastic to finally be able to officially welcome the retailers to the community, and celebrate the amazing support they have had from local residents,” she said.

“It’s been a rough ride for the tenants on-site through a year of uncertainty,”

The colourful event was the culmination of rigorous work the Centre’s management and retailers to navigate a turbulent 12 months. Residents were treated to giveaways, Bollywood-inspired performances, a sausage sizzle, and face painting, with members of Wyndham Council and the CFA also in attendance.

The Town Centre is part of the Riverdale Village master planned community, developed by YourLand and APD Projects. It is anchored by a full-line Coles supermarket and Liquorland and consists a total area of 7,295sqm. Initial tenants included Kangaroo Mobile Zone, One Stop Salon, Beauty Genesis, NewsXpress & Lotto, halal Riverdale Quality Meats and Produce, and Anytime Fitness.

Talarico said it has been an intensive journey keeping the brand-new shopping facilities and tenants operational for the local community, and maintaining the new job opportunities created by the centre’s opening. In a difficult time for the economy, the Coles supermarket created 149 new local jobs in the City of Wyndham, as well as opportunities for 40 team members transferring from other Coles stores across Melbourne.

“We have a focus on the Centre being a community hub. Everything we did stemmed from that position.”

During COVID, focus moved to social marketing platforms to support the retailers, and engage with the local community to keep them updated and informed on who was able to trade during the various restriction periods. This started immediately - Riverdale Village Shopping Centre opened on Wednesday, 25 March with Stage 1 restrictions in place, and by Thursday morning Stage 2 restrictions were in effect, meaning some offerings were forced to close.

Retailers were also encouraged to provide social media content to assist visitation, awareness and sales to their stores when trading. Talarico said the Centre’s stabilisation strategy has been developed with additional marketing funds from the landlord to further support the tenants at the Centre.

Despite the uncertain environment, a number of retailers have successfully started trading at Riverdale Village since the opening. They included Smokin’ Joes Pizza, Indian restaurant Rasoi, real estate agency Raine & Horne, Bottlemart, YourLand, Direct Chemist Outlet and a medical clinic operated by GPs who have a comprehensive understanding of the region.

“The ability of the centre and the retailers to open, trade and thrive throughout this period has caught the attention of traders and we’ve had ongoing wide interest from a leasing perspective,” Talarico said.

“There are more openings coming soon. We are committed to getting the right retail mix for long-term optimal centre performance."

She said the interest has been further underpinned by the high number of locals interested in work close to their home, or more flexibly, in an area in which they’ve built their own homes.

Metro Property Development Picks Up Point Cook Land
Metro Property Development has bought a 15.12ha Point Cook site within Central Equity’s Featherbrook Estate for $48 million.

Lot B, 315 Boardwalk Boulevard has capacity for around 260 housing lots. The vendor, private developer Akron Group paid $42 million for the site in 2017, but had only settled at the end of 2019.

The mixed-use project on the site will have an end value of circa $80 million.

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 2021 Fitzroys.

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