MARKET WRAP
SALES
Bundoora
Tough auction tactics failed to deter a keen buyer chasing a modern shopfront property (Retail 2) at 39 Plenty Road. A competitor tried to knock them out with $20,000 bids but the original buyer went on to snap up the site for $2.41 million, Ian Angelico and Craig McKellar from CVA said. The property, leased to Bundoora Medical Centre for $109,483 pa net on a 4 + 4 year lease, sold on a yield of 4.5 per cent.
Fitzroy
Retail continues to be a hot asset class. A two-level shop at 69 Smith Street held by the same owner for 60 years has sold for $2 million, at least $500,000 above the reserve. Beller Commercial's Liam Rafferty said the six bidders pushed up the sale price with strong interest from owner-occupiers wanting to start a business in the popular strip.
Watsonia
Six shops on a corner site at 65-71 Watsonia Road have been snapped up for $3.2 million on a 4.8 per cent yield, Beller Commercial's Brendan Goss and Liam Rafferty said. "It shows there's a still a number of buyers in the $2 to $3.5 million range that are happy to part ways with their money for sub 5 per cent yields," Mr Goss said.
Hughesdale
Telsta will add $2.19 million to its bottom line after selling two vacant blocks to developers. One property at 570 Neerim Road, with a developable area of approximately 590 square metres, sold for $1.119 million. Another at 101 Cape Street in Heidelberg had a developable area of 309 sq m. It went for $1 million, Gray Johnson director Matt Hoath said.
Melbourne
Balconies overlooking Faulkner Park and the possibility of renovating an apartment above and using the office below saw one investor bid $1.235 million for 25/20 Commercial Road. The two-level property, sold by Mark Smedley and Brian Doherty from Dixon Kestles, was returning a gross income of $49,378.
Hawthorn East
The boom rolls on in Melbourne's east with 469-471 Riversdale Road selling for $3.011 million at auction. Camberwell Junction never fails when the market recognises quality, Gorman Commercial's Stephen Speck and Stephen Gorman said. In a hotly contested auction it sold on a yield of 3.5 per cent. "This boom-time market won't last forever," Mr Gorman said.
Williamstown
A shop leased to clothing retailer Taking Shape was sold by Fitzroys' Michael Ryan and James Gregson for $1.505 million under the hammer, $255,000 above reserve. It had a new 3+3+3-year lease returning around $75,600 per annum.
Hawthorn
It was a dog day for underbidders at the auction of 574 Burwood Road, a double-storey terrace shop leased to pet grooming business Paws and Pose that sold for $1,122,500. The auction, overseen by Benjamin Klein and Tamara Gross from Gross Waddell, saw four bidders vie for the shop located in Auburn Village. It sold "above expectations" with ground floor leased for $28,076 net per annum and the upstairs first floor residence vacant.
Gladstone Park
A strata titled shop in the Gladstone Park Shopping Centre has sold for $510,000, on a yield of 4.9 per cent, CRS Property's Leo Yang said. Shop 14a had entrances to the mall and exterior car park. It was snapped up by an owner-occupier looking to convert it into a Chinese restaurant.
Williamstown
Fitzroys' James Gregson and Michael Ryan said the firm set a record for a strata industrial asset in Melbourne's inner-west, selling 2/132 Maddox Road for $1.055 million on a historically low yield of 4.7 per cent. The 471 square metre site with a two-level 540 sq m office and warehouse was sold with a 7+7+7-year lease from November 2014, returning around $50,000 per annum plus outgoings and GST.
St Kilda
An office (or possibly a shop) on the ground floor of the Luna Complex near Acland Street sold for $551,700 on a 7 per cent yield. Beller Commercial's Sam Fogarty said the space, G5 at 173 Barkly Street, was leased to a local developer and still had five years to run on the initial term.
Huntingdale
The home to Jensen's Choice Foods, a 6295 square metre property on 7313 sq m of land with three street frontages, has sold for $5.045 million, Crabtrees Real Estate's Chris McKenzie and Gavin Dumas said. The industrial site at 39-47 Stafford Street is used for food production, but could convert to self storage, warehousing and distribution or redevelopment, they said.
Fawkner
A used car lot at 1110 Sydney Road has sold for $1.25 million. The corner site with redevelopment potential was sold to an owner-occupier by Ray White Commercial Vic-Nunawading's Brett Diston. It covered nine titles on 1015 square metres of land. "The rear factory facing Lorne Street is currently leased on a new three-year lease with a further term of three years at $26,450," he said.
Melbourne
Two strata office suites, 803 and 804 at 167 Queen Street, have sold with vacant possession for $1.1million, Colliers International's Chris Ling and Anthony Kirwan said. "With exceptional natural light from its frontage to Queen Street, the dual-suite asset is spread across two titles and has flexibility to sell down or sublet," Mr Ling said.
Beaumaris
Retail investments in the Bayside region are proving increasingly popular. A prime single-level retail building at 332 Balcombe Road sold prior to auction for $960,000. James Glen of Nichols Crowder handled the campaign. "We're seeing a lot of demand for retail investments with solid tenants. A shortage of these properties is keeping prices at a high level," he said.
Cheltenham
A single-storey shop/showroom at 1289 Nepean Highway was sold by Nichols Crowder's James Glen and Julian Vautin before auction for $1.1 million. The 221 square metre building in the Cheltenham Activity Centre provided an opportunity for further development.
Footscray
An investor has paid $1.425 million on a tight 2 per cent yield for an office/warehouse at 112 Buckley Street. Savills Australia's Julian Heatherich and James Lockwood said the 435 square metre property sold with a monthly lease to an auto repair business returning $28,560 per annum net.
LEASES
Camberwell
Stationery business Paper Republic will lease a 145 square metre shop and office at 638 Burke Road in a deal brokered by Teska Carson's Tom Maule and Fergus Evans. The property was let at $120,000 per annum net, a rate of $827 a sq m, on a three-year term with options.
Carlton
Developer Multiplex has leased two office suites on Level 4 at 458 Swanston Street. The space was leased for a three-year term with a commencing rental of $65,000 pa net with no car parking provisions, CRS Property's Lou Montalti said.
Nunawading
Fisher Paykel Healthcare will relocate to 19-31 King Street after more than 25 years at their Ringwood site. Ian Angelico of CVA said the firm signed a lease for $550,000 pa net to occupy a two-level office, 1,655 square metre showroom and high clearance warehouse about 2,353 sq m in size.
Coburg
A 2,178 square metre industrial facility split over two levels at 14-16 Hocking Street has been leased for $85,000 per annum. Colliers International's Damian Marinelli negotiated the deal with Manny's Warehouse Online who took the 2,178 sq m space at $85,000 per annum.
MOVERS
Savills Australia's Victorian project management division has appointed Chris Chapman to the role of senior project manager. Mr Chapman was previously at not-for-profit Karingal Inc where he managed facilities and major projects.
Cushman & Wakefield has appointed Ben Ward as joint head of office leasing in Victoria. Mr Ward moved from Knight Frank where he has spent 17 years in a number of roles.
CBRE has expanded its team employing Charlotte McCann and Matt Szakiel. Mr Szakiel joins advisory and transactions office team from Chisholm & Gamon Property. Ms McCann has held property management positions with Knight Frank and JLL.
Dixon Kestles & Co have strengthened their commercial property management team appointing Billie O'Heare-Young who was previously with Fawkner Property.
Colliers International has added two staff to its investment services team with the Melbourne East office welcoming David Minton as a Melbourne metro sales director and Dorothy He as an Asia markets executive.
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