The NAB-leased bank branch at 1053-1055 Point Nepean Road has sold on a tight 3.95 per cent yield for $2,125,000. A part of the Rosebud Shopping Precinct, NAB has occupied the building for 20 years and recently renewed their lease at $84,000 a year for three years. The sale was handled by MP Burke Commercial’s Pat Burke.
Rising from the ashes, a 400 sq m strata-titled restaurant at 285 Diamond Creek Road has sold for $1,918,000. The property is leased to Phoenix & Co on a 7+7+7 year basis, with the net annual rental at $135,198 plus GST. In a modern development with six other fully leased retail outlets, it sold through Knight Frank’s Nick Bisset and Matthew Romanin.
A gateway retail building at 2-8 Princes Highway has sold for $1.53 million in a private campaign. The two-storey 514 sq m building is opposite Dandenong Market and Palm Plaza shopping centre, and features a rare triple-frontage exposure to the Princes Highway, Lonsdale, Cleeland and Clow streets, Fitzroys’ Chris Kombi said. Fully leased to two tenants on respective 5+5 year deals, the building’s ground floor is used as a retail outlet, while the first floor is home to long-established steak and seafood restaurant Cardens.
An owner-occupier has paid $1,475,000 for a Richmond strata retail shell in an off-market deal brokered by Teska Carson’s George Takis. Located in Valeo Constructions’ new 31 apartment Olor development at 306 Swan Street, the 215 sq m ground floor premises had frontage to Swan Street and on-site parking. Mr Takis said the property sold on a very strong $6860 a sq m rate which reflected the location, new build, and opportunity to design a state-of-the-art, product-led fit-out.
Four newly developed office, showroom and warehouse properties in the Princes Business Estate at 556-598 Princes Highway have sold for a total of $5.7 million to individual investors. CVA’s John Nockles and Knight Frank’s Stuart Gill negotiated the sales for an average 5.73 per cent yield. “A strong level of inquiry from investors on this campaign and others we have sold this month is demonstrating stable demand from investors on sub $2 million assets,” they said. The four showrooms were leased to tenants Iron Chest, NEWG Group Trading, Melbourne Ceramics and Leeway Security.
An owner-occupier has purchased a 175 sq m office in the popular Uni Park precinct at 195 Wellington Road for $762,500. The office came sold with a quality fit-out and included seven car spaces on title. Knight Frank’s Matthew Romanin and Nick Bisset in conjunction with Colliers International’s Jordan Lipton brokered the deal.
A Sydney-based investor has snapped up a two-level building at 849 Burke Road for $1,675,000 on a sharp 4 per cent yield, Fitzroys’ Chris James and David Bourke said. The two-level 185 sq m building, home to the Camberwell Sewing Centre which occupies both floors on a 5-year lease deal, is opposite the Burke Road walkway entrance to Camberwell train station.
A retail space leased to Qudos Bank sold at auction for $1.5 million. The building at 397 Keilor Road saw strong bidding with 23 bids by two bidders, each raising the other by $10,000. It fetched $100,000 above reserve, CVA’s Anthony Carbone and Craig McKellar said. Leased for $68,640 per annum, it sold on a yield of 4.58 per cent.
Growth-focused investors are betting on shopping strips. A first-time investor has acquired a two-storey Newport Village freehold under the hammer for $875,000. Fitzroys agents James Lockwood and James Spencer marketed 23 Mason Street. The new owner also owns the cafe next door. Vacant retail properties have been trading strongly throughout Melbourne, despite tightened lending conditions encouraging investors to seek tenanted assets, Mr Lockwood said.
Robert Cubelic and Craig McKellar of CVA have sold a new warehouse at 38 Halsey Road for $980,000. The 361 sq m property was leased earlier in the year for $43,000 per annum on a 3+3+3 year term. The sale equates to a yield of 4.38 per cent.
Strong demand for shops in the inner east has seen a vacant asset in the tightly-held Kew East Village snapped up before auction. Chris James and David Bourke of Fitzroys sold 674 High Street for $1.2 million. The sale reflected a sharp 2.5 per cent yield on a current market rent.
A fully leased healthcare centre in the heart of Sunbury’s retail precinct has sold for $4.51 million after a competitive auction. CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat and Rorey James handled the sale of 92-96 O’Shanassy Street, a property anchored by Tri-Star Medical Group. “Astute buyers are identifying now is the best time to buy,” Mr Peluso said.
CVA’s Stan Dawidowski and Jarrod Moran have sold a an industrial office/warehouse at 4 Bonavita Court for $500,000.
Overlooking Melbourne Town Hall, a Level 2 suite in 220 Collins Street was only on the market for three months before leasing to Trunk Tailors, Colliers International’s Brigitte Doupe said. The boutique 60 sq m office in the well known and historic Manchester Unity building was leased for $700 per sq m gross. “Trunk Tailors were attracted to this address due to the quality of the refurbishment,” she said.
La Manna & Sons has leased a ground floor commercial kitchen at 103 Green Street at a $300 per sq m rate in a 2-year deal negotiated by Colliers International’s Chris Meehan alongside Teska Carson’s Matt Feld and Luke Bissett. Mr Meehan said inner fringe locations such as Cremorne were becoming increasingly popular. Meanwhile, Hit IQ has taken 400 sq m at 9-17 Raglan Street in South Melbourne at gross face rent of $450 per sq m, Mr Meehan and colleague Tristan Parker said.
Security firm Gatekeeper Vetting Pty Ltd has taken a part of Level 9, 179 Queen Street. Canberra-headquartered Gatekeeper signed a 5-year lease over the new 82.50 sq m office space in a deal negotiated by JLL’s Alexandra Harper at $400 per sq m per annum.
Retail wine supplier Oak Road Estate have consolidated their Moorabbin and Camberwell offices and taken up space in a fully-fitted 697 sq m suite at 357 Camberwell Road. Oak Road signed a 3-year least at around $300 per sq m net. Colliers International’s John Howell and Damien Adkins in conjunction with Gorman Kelly’s Sam Torrance and Mario Nobrega negotiated the lease.
Regional public transport operator V/Line has leased an office and storage depot at 61 Castro Way. CBRE’s Fergus Pragnell, Ricardo Cappelletti and Tom Murphy negotiated a 4-year lease for the 1110 sq m office/warehouse on behalf of landlord Golden Developments, the largest distributor of duck eggs in Victoria who operate from an adjoining building.
St Vincent De Paul has leased a corner showroom at 1716-1718 Sydney Road through CVA’s Craig McKellar and Stan Dawidowski. The 750 sq m building was leased for $100,000 per annum on a 5-year lease.
Savills Australia has announced a string of new hires. Bruce Kerr will join as a director of the valuation and advisory team. Bruce has more than 30 years’ experience in the property valuation profession, joining from CBRE. Damien Clark comes to the firm as an associate director for valuation and advisory, following seven years at Opteon. Natalya Kozenkova has joined the property accounting team as a director and Michael Michielin will be an assistant project manager for the project management team.
Cushman & Wakefield has established an advisory and business brokerage capability, appointing Steve Makris to lead the business and retail services function in Melbourne. He joins the firm from Raine&Horne business brokers.
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Property Editor at The Age and BusinessDay journalist for Fairfax’s theage.com.au, smh.com.au, watoday.com.au and brisbanetimes.com.au.