Burgundy Street shop with development plans sells for $5m
MARKET WRAP
SALES
A Malaysian Investor paid a healthy $5 million for a shop in Burgundy Street.Credit:Chris Hopkins
Heidelberg
A Malaysian Investor paid a healthy $5 million on a tight 4.86 per cent yield for 156 Burgundy Street, a 420sq m shop leased to Chemist Warehouse for $243,101 a year. Savills Australia's Nick Peden and Jesse Radisich said the property had plans and a permit for the construction of 16 apartments over six levels. "The transaction clearly demonstrated the increasing appeal of Melbourne's inner suburban markets to Asia-based buyers wishing to invest in areas with strong population growth," Mr Radisich said.
A two-level office building at 376 Heidelberg Road, Fairfield, sold under the hammer for $4.05 million.
Fairfield
A two-level office building at 376 Heidelberg Road with income potential of $200,000 sold under the hammer for $4.05 million. The office was sold by Morley Commercial's James Lie and Andrew Morley with aggressive bidding from local and international bidders.
Melbourne
A standalone two-level office and residence at 20 Bennetts Lane has sold under the hammer for $1.925 million to an owner occupier, said Fitzroys' Rob Harrington and Marc Elliott. "There are so few opportunities for owner occupiers to purchase their own boutique freehold property of this size and style in the CBD in such an iconic laneway, and this was reflected in the 130-plus potential purchasers we engaged with during the marketing campaign," Mr Harrington said.
Three bidders pushed the price for a vacant shop at 4 Pauline Avenue in the Dingley Village well above expectations.
Derrimut
Pluto Property has sold a 3240sq m office/warehouse on a 7104sq m site for $3.8 million on a 7.3 per cent yield in a deal brokered by Savills Australia's Chris Jones and Ben Hegerty. The building at 2/80-100 Fulton Drive had three years remaining on its lease to global supply chain company BR International Logistics at annual rent of $277,661.
Ringwood North
Fitzroys' Chris Kombi and Dean Alexander have sold a site at 165 Wonga Road for $1.81 million. Developers purchased the 20-bed special needs residential accommodation facility and large on-site car park leased on a 5 + 5-year deal to L'abri SRS, returning $87,142 per annum plus outgoings and GST. The sale price reflected a tight 4.8 per cent yield.
Cheltenham
Hannans Window Furnishing has snapped up 308 Bay Road, a 316sq m office and showroom, for $800,000 following an EoI campaign by CBRE's Guy Naselli and Bryce Pane in conjunction with DGI Properties.
Sydenham
After 53 bids from six bidders, Shop 7 at 28A Hume Drive in the Aqua Gardens Shopping Centre sold for $945,000. CVA's Leo Mancino and Ian Angelico said the shop, leased to restaurant Caroline Thai 2, fetched an 18 per cent premium to the reserve.
Tullamarine
A large warehouse on a prime Tullamarine corner, on Lambeck and Aerolink drives at 81-85 Lambeck Drive, has sold for $3 million. Gross Waddell's Andrew Thorburn and Andrew Waddell, and Anthony Carbone from CVA negotiated the deal. Mr Thorburn said in the current low interest rate environment, owner occupiers preferred to purchase rather than lease properties.
Hawksburn
At just 55sq m, the small strata titled shop at 499 Malvern Road returned its owner a big premium. The shop, originally purchased for $850,000 in 2014, was snapped up for $988,000, providing a $138,000 uplift and strong building rate of $17,964 per sq m and yield of 4.9 per cent, CBRE's Rorey James, Nic Hage and Thomas Tuxworth said.
Dandenong South
Communication products firm, Benelec, has paid $2.7 million for an office/warehouse at 67 Assembly Drive in a deal brokered by Savills Australia's Paul Jones. The building was a speculative construction by local developer Tabak Group.
Dingley
A vacant shop at 4 Pauline Avenue in the Dingley Village has sold for $680,000. Three bidders from an auction crowd of 40 onlookers pushed the price well above expectations, Teska Carson's Anthony Choi and George Takis said.
LEASES
Melbourne
Mensroom Barber Shop will open its fourth shop at 459 Little Collins Street. Colliers International's Jarrod Herscu and Cam Taranto leased the space for $55,000 per annum on a five-year term. "The deal was brokered off-market within two weeks," Mr Herscu said.
Altona
Hi-Tec Oils have leased 2300sq m industrial space at 1, 41-45 Burns Road. The site included a huge hardstand area and two-level office leasing for $174,500 per annum net, Bradley Ellul and Leo Mancino from CVA said.
Collingwood
NCS has leased a 180sq m two-storey office in the Glassworks development at 23-25 Gipps Street. The building leased for $69,500 per annum, said Knight Frank's Alex Bolton. Collingwood has become popular location with professional services as rising CBD rents push tenant's to the city fringe, he said.
Richmond
Music promoters We Are Unified has leased 51 Wangaratta Street for $152,500 per annum in an off market deal negotiated by Benjamin Klein from Gross Waddell. The stand-alone two-level office/warehouse was let on a seven-year term.
Truganina
Industry Property Group's Andrew Macqueen has leased 25 Efficient Drive to Krehalon Australia, a wholly owned subsidiary of Japanese specialty chemicals and plastics manufacturer Kureha Corporation. The firm took a 3 x 3 year lease with further options at annual rent of $170,000, he said.
MOVERS
Advisory firm Charter Keck Cramer has appointed Glenn Dixon as its director of civil engineering. Mr Dixon was previously a principal at engineering consultancy GHD.
Cushman & Wakefield has strengthened its Australian operations and appointed the former head of Savills in Victoria, Dominic Long, as its managing director. Mr Long's move coincides with Cushman relocating to two floors on 385 Bourke Street. The group has appointed 100 new staff in the last 18 months.
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