Market Wrap: Investor snaps up 14 Docklands offices in a row for $3.81mWaterfront City, in Docklands. Photo: Jessica Shapiro

Market Wrap: Investor snaps up 14 Docklands offices in a row for $3.81m

Sales

Docklands: Melbourne-based investor JAK Investment Group has paid $3.81 million for 14 office suites at 425 Docklands Drive in a deal negotiated by Lemon Baxter’s Paul O’Sullivan. The units, next to Harbourtown Shopping Centre, were originally developed by ING in 2005 as part of the Waterfront City precinct. Harbourtown was recently acquired by Ashe Morgan Capital for $140 million.

Thomastown: Forte Developments has acquired a former refinery in Thomastown for $4.85million – the latest in a swag of purchases for the expanding development firm. Located at 337-339 Settlement Road, the 22,128-square-metre property incorporated multiple titles providing access onto Canfield Court as well as Dunstans Court to the rear. CBRE’s Amanda Traficante, Dean Hunt and Lindsay Davidson negotiated the sale on behalf of a consortium of owners.

Abbotsford: A rundown building at 178-180 Hoddle Street sparked a bidding war that saw it sell for $1.3 million, about $450,000 above expectations. Gray Johnson’s Matt Hoath said the two-level Victorian building attracted owner-occupiers, investors and developers. “I believe we witnessed Abbotsford site values catching up with those of adjoining suburbs like Richmond and Cremorne,” he said.

A rundown building at 178-180 Hoddle Street sparked a bidding war which saw it sell for $1.3 million.
A rundown building at 178-180 Hoddle Street sparked a bidding war which saw it sell for $1.3 million.

Richmond: A Melbourne-based private developer has paid $2.9 million at a record land rate of $9355 a square metre for an office/showroom property at 196 Mary Street following a lively Teska Carson auction. The 300sqm building sold in front of a 100-strong crowd with several bidders driving the price well past the vendor’s reserve, said Tom Maule who marketed the property with colleague Fergus Evans. Meanwhile, a private investor paid $2.05 million on an indicative yield of 4.7 per cent for an office and warehouse at Abbotsford. The 22 Grosvenor Street property sold with vacant possession, said Mr Maule and Adrian Boutsakis.

Balaclava: A long-term investor outmuscled developers to snap up Carlisle House on the corner of Westbury and Carlisle streets. Offered to the market for the first time in 30 years, the unique property sold for $8 million on a incredibly low yield of 2.5 per cent. The vendor was a private family trust, said Beller Commercial’s Liam Rafferty and Brendan Goss. “Tight mandatory building heights along Carlisle Street limited developers’ opportunity,” they said.

Coolaroo: The last in a line of shops in a development at 1350 Pascoe Vale Road on the corner of Barry and Pascoe Vale roads had sold. The project is anchored by a 7-Eleven outlet and six other stores all leased by specialist food outlets. Gray Johnson’s Rory White has sold to a private investor the final available shop leased to Mehmet Ursa Turkish restaurant for $1.285 million with a 60-day settlement on an indicative yield of 8.1 per cent.

Port Melbourne: A building that was previously the head office of Porter Davis has sold for $4 million. The vacant two-level office warehouse at Unit 10, 435 Williamstown Road had a 959sqm floor area that included 60sqm of warehouse/storage space, said Knight Frank’s Chris Chartres and Ben Hackworthy. The price equates to $4,170 a sqm.

Altona: Strong demand for limited industrial space has underpinned a tranche of sales at Cadence Property Group’s new land subdivision. Cadence director Charlie Buxton said six lots, which sold for rates between $130 and $150 per sqm, were purchased by civil construction group Civilex/Conset, road construction contractors Elite Roads, two private operators and transport group Niche Logistics. CBRE’s Tom Hayes sold the sites. “The result exemplifies the high demand for land stock within the inner western industrial precinct, relative to other industrial catchments across Melbourne,” Mr Buxton said.

Laverton North: Cheese importer Landanah has snapped up a 2621sqm site in the tightly held Angliss Industrial Estate for $2.7 million. CBRE’s Todd Grima, Tom Murphy and Harry Kalatzis negotiated the vacant possession sale of the office/warehouse at 72 William Angliss Drive on behalf of Pesa Investments. Mr Murphy said the vendor decided to take advantage of the healthy owner-occupier market after focusing on a lease campaign for several months.

Richmond: A SMSF has swooped on securely leased property at 255 Swan Street leased to Portobello Home on a new five year lease with an initial annual rental of $36,000 plus GST and outgoings, Gray Johnson agent Rory White said. The $750,000 transaction was struck on an indicative return of 4.8 per cent.

Oakleigh: Three directors of a local cabinet making business have bought three neighbouring warehouses off the plan at Royal Business Park 61 Westminster Street in a deal negotiated by Luke Pitcher of Crabtrees Real Estate. Within the same week, two additional factory/warehouses were sold by Rodney King to two local investors, also benefiting from the generous stamp duty savings. All five sales averaged $2655 per sqm.

Altona North: An owner occupier has paid $1.081 million for a new office warehouse at 3/1-3 Drake Boulevard. The facility has a floor area of 875sqm and prominent street frontage to Kororoit Creek Road, said Knight Frank’s James McConville and Joel Davy. Nearby another owner occupier paid $1,259,300 for an office warehouse at 3 Sara Grove in Tottenham.

Leases

Northcote: Sportsgirl is on track to start trading this month after leasing Shop 31 in Northcote Plaza. The 98sqm space was leased for $52,000 per annum net on a long 5x5x5 year lease, said Fergus Evans from Teska Carson. Meanwhile, another ground-floor shop at 233 Union Road in Ascot Vale has leased to an Asian fusion restaurant on a 5×5 year term for $60,000 per annum net. And in Cremorne, at 25 Gwynne Street, Tom Maule and Mr Evans negotiated a lease to Caremonkey of a boutique office for $55,000 a year. Friendsurance has taken a short-term lease at 10/249 Chapel Street, Prahran, Mr Evans said.

Prahran: AS Colour, one of the world’s largest T-shirt manufacturers will open a flagship store at 230 Chapel Street, a site just vacated by Alpha 60 last week. The 130sqm shop was leased for $90,000 per annum with minimal rent-free period in a deal brokered by CBRE’s Samantha Hunt and Zelman Ainsworth.

Dandenong South: Al Armstrong and Angus Clark from Cameron have leased a 1537sqm warehouse at 202 Discovery Road six weeks before it has been completed. National group Multinail have agreed to a five-year lease at $117,500 per annum.

Hoppers Crossing: Croc’s Play Centre will open in Mco’s Property’s Williams Landing Business Centre at 57-69 Forsyth Road. The new venue will be their 16th nationally, said Melbourne Acquisitions’ Rick Silberman. The childcare centre took 1100sqm on what is understood to be on a 10-year term with a further option.

Wonga Park: Restaurateur Little Billy Group has agreed terms on a new lease at the Village Centre in the heart of Wonga Park. The food purveyor took 600sqm on a 20-year term with options, according to Savills Australia’s Michael Di Carlo. The rental was not disclosed, however the asking rent was $550 a square metre.

Movers

Savills Australia’s Melbourne valuation and advisory division has appointed Joanne Spicer to the role of associate director. Ms Spicer was, for past 10 years, at the City of Whittlesea in a senior valuer role.

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