An investor paid $2.27 million on a 4.4 per cent yield for a shop at 440 Hampton Street. Teska Carson’s George Takis and Michael Ludski said four bidders pushed the price more than $170,000 above the vendor’s reserve. The property boasted a new five year lease to Australia Post at an annual rent of $100,000 with 3.2 per cent annual increases.
Developers are concentrating on sites in middle ring suburbs. The Pellicano family has sold a development ready site at 277-279 Centre Road for $9.75 million. The double-storey commercial building on a 1564 square metre site had been in the family for 30 years, CBRE’s Mark Wizel, Julian White and Nathan Mufale said. The property, with a permit for 52 apartments, is 90 per cent leased to nine tenants returning passing income of $267,000 per annum.
In the north, a site in Coburg with a permit for a 114-space childcare centre traded off market for $3.6 million, highlighting escalating demand for such opportunities, Savills Australia’s Julian Heatherich said. The property at 170 Sydney Road sold at a rate of $3785 per square metre.
Out east, a permit approved 1019 square metre site sold for $5.5 million with an unusually short 14 day settlement period. Savills Australia’s Jesse Radisich, Nick Peden, Clinton Baxter and Benson Zhou brokered the deal for 222 Burke Road. “The site was originally purchased last year with an approved permit for $4.45 million, and the Savills team was able to secure a $1,050,000 uplift in price,” Mr Peden said.
Another development site at 29-31 Manningham Road sold under the hammer for $3,225,000 or $575,000 above the reserve price. CBRE’s Chao Zhang, David Minty and David Silcock transacted the property which had approval for eight townhouses and dual frontage to Robert Street.
A large 1.492 hectare site next to Bunnings Warehouse on Dalton Road has sold for $7.08 million. The property transacted with a permit for a service station and 10-unit office warehouse development, CBRE’s Dean Hunt, Daniel Eramo, Daniel De Sanctis and Amanda Traficante said.
Efxpress has sold its modern office and warehouse at 85 Fulton Drive in Gilbertson Estate for $5.1 million amid demand for sites with less building coverage driven by commercial hire and logistics focused businesses. CBRE’s Ricardo Cappelletti, Tom Murphy and Harry Kalaitzis handled the private sale campaign.
Oz Design will join Freedom Furniture, Fantastic Furniture, Chemist Warehouse and BCF in the Kervale Investments-owned Geelong Gate centre at 470-510 Princes Highway, taking a 1200 square metre showroom. “We still continue to see healthy leasing activity in the large format space,” said Leedwell Property’s Chris Parry, who negotiated the lease with Tom Perkins and Nick Segran. Market rents for showroom space in Geelong are between $180 and $250 per square metre net.
The popular Loscar Barbers shop will move to 1027 Mount Alexander Road after signing a seven-year lease for a new 64 square metre premises. Burgess Rawson’s Arton Meka said the deal reflects a sharp $594 square metre rental in a strongly performing retail strip.
Japanese eatery OKAMI will open a flagship 201 square metre restaurant in the Clarinda Village neighbourhood centre after Mr Meka from Burgess Rawson negotiated a 7 year lease at $88,000 per annum. OKAMI operates in 13 locations across Melbourne.
Plunkett Crane Trucks has leased a 1254 square metre building owned by JJ Richards and Sons at 79 Waterview Close. Cameron’s Angus Clark and Ivo Redmond negotiated the 4 year lease at $220,000 per annum. Meanwhile, Al Armstrong and Ed Cooper leased 49-51 Edison Road in Dandenong South to Atlas Foods for 5 years for $126,000 per annum. And the firm’s Jake Beckwith found a new home for Steel Windows Australia at 15 Newington Avenue in Capel Sound. The 884 square metre warehouse was secured on a 5 + 5 + 5 year lease returning $65,000 per annum.
A caravan business has leased a 3200 square metre industrial facility at 6/1764 Hume Highway. They signed a three-year lease term at net annual rental of $160,000, Knight Frank’s Brent Glassford and Marco Sandrin said.
Acknowledge Accounting has leased 320 square metre on level one in the landmark Surrey Lodge building at 613 Canterbury Road. Fitzroys’ Stephen Land negotiated the five-year deal at $94,400 per annum net. “The strong Melbourne suburban market has seen demand from Hawthorn spill over into Surrey Hills,” he said.
ASX-listed Zenitas Healthcare will relocate to 417 St Kilda Road after finalising a 1600 square metre lease. The community-based healthcare provider will occupy all of level 9 and part of level 4 in a five-year lease deal negotiated by CBRE’s Anthony Park. Gilead Science recently renewed its 1100 square metre lease in the same building.
Property financier and developer Quintessential Equity has appointed Russell Bullen as chief executive officer to lead its team. Mr Bullen was previously the chief operating officer at the group and co-founded Alvarez & Marsal Real Estate Advisory Services in the United States.