An investor has snapped up a childcare centre at 1848 Geelong Road for $4,275,000. The Goodstart Early Learning centre fetched a yield of 6.4 per cent, highlighting the demand for high-quality tenants in the childcare market, Savills Australia’s Mark Stafford, Julian Heatherich and Benson Zhou said. The 120-place centre provides fixed annual rental growth of 5 per cent and is on a 3187-square-metre block. “It highlights the ongoing demand we are experiencing for income-generating assets,” Mr Stafford said.
An owner-occupier swooped on a warehouse at 1 Ovata Drive, paying $1.23 million on a rate of about $1708 per square metre for the property. Colliers International Corey Vraca and Mitch Purcell said the private sale demonstrated continued demand for the Tullamarine industrial precinct. In another deal, the pair negotiated the sale of 35 Butler Way for $1.34 million at a land rate of $2027 per square metre.
A shop at 88 Maling Road sold on a 4 per cent yield in a deal negotiated by Gorman Commercial’s Tom Maule and Jonathon McCormack. The agents declined to comment on price. “The sale demonstrates that good quality properties such as this are still highly sought after by local investors in the current market place,” Mr Maule said.
A trio of new tenants will move into a three-level home office-style building at 420 Church Street. Fitzroys’ Lewis Waddell secured bridal studio By Kinsman, Steve Domoney Architecture, and fitness centre The Gym for the building’s landlord. The offices, about 180 square metres, were each leased for $55,000 a year gross on a mix of two- and three-year initial lease terms with options to extend. Mr Waddell said that despite uncertainties created by COVID-19, the last two remaining home offices had been leased at the beginning of the month.
The Melbourne College of Hair and Beauty will relocate from its Flinders Street head office to The District at 440 Docklands Drive. “We’re starting to see education-based occupiers look outside of the CBD,” said Colliers International’s Chris Meehan, who negotiated the lease with Travis Myerscough and James McMahon. The college leases 860 square metres at rent about $500 per square metres for five years.
Viva Leisure has leased a studio at 3 North Street for $215,000 a year through Gross Waddell’s Richard Lowe and Andrew Greenway. Between Ascot Vale and Mt Alexander roads, the 811 square metres, two-level building has 26 car parks. Viva signed a five-year lease and will pay all outgoings, including land tax.
The team behind Sexpo, Australian Exhibitions Group, will relocate to level six at 523 Burwood Road after signing a five-year lease negotiated by Colliers International’s Damien Adkins and Tom Rothel. Sexpo took a 410-square-metre space at rent around 540 per square metre. The tenancy features 360 degree views and a balcony barbecue area.
A specialist dental software company has leased unit 302 at 91-95 Murphy Street. Gorman Kelly’s Samuel Torrance negotiated a three-year lease for the 95-square-metre strata office suite at a commencing rental rate of $475 per square metre gross. The tenant was attracted by the turnkey nature of the suite and its creative and high-end existing fit-out, he said.
The 149-square-metre ground floor office suite at 79 Manningham Road has leased on a four-year term at starting rent of $49,000, a rate of $329 per square metre, leasing agents Gorman Commercial’s David Minton and Nick Meadows said. The suite is in the Bulleen Corporate Centre.
Sydney-based Flat Pack Kitchen Distributors has leased a new 650-square-metre high-clearance warehouse with an office at the Summit Business Park in Rainier Crescent. Developed by Hawthorn-based Brown Property Group, the warehouse was leased by Gray Johnson’s Stephen Buchan and Rory White. The three-year lease will return annual rental of $68,000 net with fixed 4 per cent annual increases. Flat Pack got a two-month rent-free incentive.
Open space specialists Landmark Products are relocating their head office to 431 Burke Road after signing a three-year lease over 210 square metres. The deal was negotiated by Colliers International’s Tom Rothel and Gorman Kelly’s Samuel Torrance at rental in the low to mid $300 per square metres.
The Brien Holden Vision Institute has signed a lease over 94 square metres in the South Yarra Corporate Centre at 209 Toorak Road. The two-year lease was negotiated by Colliers International’s James McMahon and DBR Property Services at gross face rent of $535 per square metre. “Suites within this complex are very tightly held,” Mr McMahon said.
Level 1 at 231 Burwood Road has recently been subleased. A private developer took the 181-square-metre first floor office on a two-year sublease to use as a display suite for their development located directly across the road, Gorman Kelly’s Samuel Torrance said.
Staff Australia has secured a 383-square-metre office at 6 Wedgewood Road where it will make use of the existing fitout on a five-year term. The recruitment company paid about $160 per square metre rent and will join Hub24, DNA Recruitment and Reeds Consulting in a deal brokered by Colliers International’s John Howell, Tom Rothel and Ash Dean.
Employment provider Max Solutions is taking space in the former Centrelink building at 14-16 Prospect Street. Fitzroys’ Stephen Land negotiated the lease on behalf of an offshore investor. The 2+2+2-year deal covers 192 square metres on part of level one at $84,500 per annum plus GST.
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