Fitzroys Weekly Wrap - 25th June 2021

Posted on 25th June 2021

432 Centre Road, Bentleigh
Offered for the first time in 60 years, the home of popular café and eatery Little Tommy Tucker sold to an investor for $2.165 million at a 3.3% yield. The 180sqm building on a 200sqm site has a 5+5+5-year lease that returns $74,305pa plus outgoings and GST.

23A Gladstone Street, Moonee Ponds
A local investor bought the 300sqm building leased to café Dear Abbey for $1.885 million. The 2-level premises was built into the front of the former Wesleyan Church site and is leased to the café on a 5+5+5+5-year lease returning $100,000pa plus GST.

121 Nepean Highway, Seaford
An investor bought the vacant 344sqm building on a 323sqm site for $1.86 million.

461 High Street, Northcote
The vacant 230sqm shop and dwelling sold for $1.2 million to an owner occupier who intends to also open up the space to other creative tenants.

250-258 Whitehall Street, Yarraville
The Shell service station sold for $10.9 million at a 5.7% yield. It is one a 3,080sqm site with a combined 97m frontage and has a 10-year lease until 2029 plus options to 2049, currently returning $623,520pa plus GST.

321 Exhibition Street, Melbourne
Studio Beans Coffee Roasters leased their 1st CBD space, a 20sqm lobby kiosk, at $3,500/sqm.

527 Malvern Road, Toorak
Sushi Sushi leased the 130sqm shop in Hawksburn Village for 6 years $85,000pa.

153 Chapel Street, Windsor
A frozen yoghurt business leased the 80sqm shop for 5 years at $562.50/sqm.

314-318 Drummond Street, Carlton
The head office of book chain Readings sold for $3.275 million at a 2.7% yield. Opposite the back entrance to Carlton Square, the 2-level 510sqm building is on a 264sqm site zoned General Residential. Readings recently signed a new 5-year lease at $97,274pa.

299 Toorak Road, South Yarra
ARX Consulting leased 359sqm within Newmark Capital’s The Como Centre at $450/sqm gross, while QuadLock leased 683sqm on level 3 of the building at $545/sqm net.

Unit 5, 3-5 Gilda Court, Mulgrave
ASI Solutions paid $2.45 million for the 682sqm office and warehouse. D5 Investments was the vendor.

Unit 1, 50 Star Crescent, Hallam
The 415sqm workshop sold for $810,000 at a sub-4% yield. It is tenanted by a mechanic on a 3+3-year lease bringing $31,830pa plus GST.

40 Decco Drive, Campbellfield
Automotive company Scania signed a 10-year lease over a 9,346sqm warehouse for a new spare parts distribution centre. The facility is part of a 35,790sqm property that Centennial Industrial & Logistics bought late last year for $13.2 million.

26 Trade Place, Vermont
Smart Repair signed a 2-year lease at $115,000pa net for the 821sqm office and warehouse with 11 parking spaces.

Unit 1/43 Gatwick Road, Bayswater North
Commercial building company jointly leased the 600sqm warehouse for 3 years at $75/sqm.

700 High Street, Thornbury
A developer paid $1.711 million the triple-fronted 439sqm corner site, which was offered for the first time in 40 years.

678 Burwood Road, Hawthorn
Chinese-backed developer Dahua Group sold the 991sqm site on the corner of Camberwell Road for $5.2 million. It traded on a 3.43% yield with 2 years remaining on the lease to EcoWash, which returns $225,000pa.

22 Blackburn Road, Blackburn
A cosmetic surgeon signed a 7-year lease at $60,000pa net.

Melbourne Set for Another Build-to-Rent project
Melbourne City Council has voted to recommend a $230 million dual-tower build-to-rent project next to Marvel Stadium in Docklands.

Daniel Grollo’s build-to-rent business, known as Home, has a $2 billion platform backed by Singaporean sovereign fund GIC. His GFM Investment Group bought the site for $67.1 million last year. It had been ultimately controlled by the AFL, which is headquartered at Marvel Stadium, and was set to be developed into a residential project by Chinese developer AZX Group.

The site had approval for towers of 21 and 23 storeys with a total of 577 apartments, which GFM Investment increased to 30 and 28 storeys and with 676 apartments.

The Victorian government has final say over the plans. Home is also planning a $220 million build-to-rent project for the former Richmond Plaza site on Bridge Road that will include 368 apartments, market hall, a full-line supermarket, retail space, and offices. It also has sites in Southbank and North Melbourne.

The fast-growing build-to-rent sector is seeing multiple projects underway or in planning on the edge of the CBD and in inner suburbs.

Mirvac is currently developing a built-to-rent project with PDG overlooking the Queen Victoria Market, and received approval for a $1 billion Spencer Street mixed-use development that that will include 472 build-to-rent apartments. It is also developing 527 apartments on a 1ha Brunswick site with local group Milieu.

Canadian group Oxford Properties recently bought the 6,916sqm site at 3 McNab Avenue in Footscray for a $450 million build-to-rent project, while US company Greystar raised $1.3 billion for its Australian build-to-rent fund that could have 5,000 dwellings, and owns adjoining sites in the Forrest Hill precinct in South Yarra.

Assemble Communities has sites in Kensington on which it will develop build-to-rent and rent-to-buy projects.

Owners Team Up Again for St Kilda Road Site Sale
Alfred Health will develop a new melanoma treatment and research facility after paying $31 million for 545 St Kilda Road, in another deal in the precinct that saw multiple owners team up to sell a property.

The 2,685sqm site required all 25 separate owners of the apartments and offices in its 1930s building agree to sell the property.

It neighbours the Alfred Hospital which is looking to begin building the facility later this year.

The sale comes just after a 1950s block of flats at 8 Louise Street, opposite the 484 St Kilda Road office tower, was sold by its 20 individual owners to developer Samuel Property for $21 million.

In Victoria, owners corporations require a 100% vote from all title holders to complete a collective sale.

Few properties in the area have sold during COVID. One of the few was Fitzroys’ Paul Burns $62.15 million sale of the Flight Centre headquarters at 436 St Kilda Road last year to Shakespeare Property Group.

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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