Investors are turning to defensive, safe haven property to insulate themselves from the pandemic, seeking assets with income certainty both now, and beyond, the pandemic, Savills Australia’s Jesse Radisich and Benson Zhou said. The pair negotiated the off-market, off-the-plan sale of a strata titled VicRoads customer service centre to a China-based investor for $9.3 million. The under-construction centre at 93A Heatherdale Road has a 12-year lease at rent of $469,580 per annum and sold on a sharp 5 per cent yield.
Two creative web development businesses, It’s All Fluff and Love & Money, are taking over a shop at 188-196 Gertrude Street that was formerly tenanted by Contemporary Art Spaces. Gray Johnson’s Rory White said the web firms signed a four-year term at a starting rent of $132,500 net, paying a market leading $617 per sq m for the 215 sq m space.
Damstra Technology has leased a 450 sq m office in The Como Centre, on level 3 at 299 Chapel Street, from Newmark Capital, paying $632 per sq m under a five-year lease. The open-plan office space features an extensive private balcony along Toorak Road, Colliers International’s Kevin Tutty, James McMahon and Ash Dean said.
Ericsson Australia is taking over an office warehouse that was formerly leased to CSE Crosscom. Ericsson will pay $150,000 a year on a three-year lease for a unit at 59-63 Mark Street, ICR Property Group’s Julian Materia and Raff de Luise said.
Chef Denis Hagger will open a new dine-in and takeaway French-style rotisserie after leasing space in Toorak Village on a three-year term for $45,000 a year. Mr Hagger’s other ventures include 25 Toorak Road and Maison Maldon Gourmet Retreat. The 60 sq m ground-floor shop with a commercial kitchen is at 472 Toorak Road, Teska Carson’s Luke Bisset said.
Metal manufacturers AWM Electrical will move into 152b Gaffney Street on a five-year lease at 57,500 a year in a deal negotiated by ICR Property Group’s Julian Materia, Raff de Luise and Troy Crouch.
A Pakistani restaurant based in Fawkner is expanding to a second location, leasing 48 sq m at 142 Rathdowne Street. Fitzroys’ Ervin Niyaz negotiated a long, six-year lease at $500 per sq m for landlord Patelas Operations. Mr Niyaz said a business serving similar cuisine has relocated, offering the new tenant a gap in the market.
Heavy commercial vehicle hire firm TR Group has leased a 7.5 hectare warehouse and hardstand facility that was previously occupied by Prixcar, paying $950,000 a year under a 10-year lease at 89-95 Boundary Road. The lease for the 4000 sq m combined office and warehouse was negotiated by Colliers International’s Nick Saunders.
Crux Biolabs will lease a 430 sq m laboratory in the Mountain Highway Business Park at 885 Mountain Highway. In a deal negotiated by JLL’s Simon Wellock and Matt Allwood, Crux signed a five-year lease with landlord Integrated Logistics Partners valued at $170 per sq m.
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