Commercial yields paid for a property leased to Bendigo Bank at 164-166 Burgundy Street are on par with fixed-term bank deposits or bond returns. The prominent corner property was sold by Fitzroys’ Geoff Emmett and Chris James for $5,302,000 under the hammer. The sale price reflected a sharp 3.4 per cent yield and a land rate of around $7470 per sq m. The property, with three tenancies, returned $179,934.10 per annum.
Yields around 3.5 per cent are the new benchmark for Melbourne’s high street stores. A two storey Victorian-era shop at 108 Glenferrie Road sold at a hotly contested auction with six bidders for $3.31 million, Gross Waddel’s Alex Ham and Tamara Gross said. The property was returning annual income of $116,420, fetching the vendor a yield of 3.5 per cent.
Investors buoyed by Richmond’s booming population, the result of apartment-led development, were willing to pay $1.22 million on a tight 3.1 per cent yield for a two-level shop at 362 Victoria Street. Morley Commercial’s Jonathan Lu negotiated the sale via an auction with multiple bidders.
A fish and chip shop with development upside sold under the hammer to a local investor for $552,500 for a yield of 3.4 per cent. The 110 sq m building at 111 Railway Parade had approved plans and permits for a three-storey development with four, two-bedroom apartments and a shop, Ray White Commercial Oakleigh’s Ryan Amler said. The fish and chip shop returned rent of $19,701 per annum.
Another store, shop 1 on the corner at 2-4 Balcombe Road and Ebden Avenue, was hotly contested by five bidders and eventually sold for $570,000 at auction. The building, leased to a pet grooming business, changed hands on a 5 per cent yield on annual income of $29,000, Gross Waddell’s Alex Ham and Benjamin Klein said.
A vacant three-level office building with basement parking and the potential to develop up to five levels at 556-558 High Street has sold for $1.3 million. The property, on 424 sq m, was sold prior to auction by CBRE’s Josh Twelftree, Sandro Peluso and David Minty.
A private investor has bought a 372 sq m office/warehouse for $520,000. At 39 Scammel Street, the property is leased to Whites Diesel Australia on a three-year term, Knight Frank’s Scott Braithwaite and Daniel De Sanctis said.
Consumer finance business Thorn Group, which controls the Radio Rental brand, has taken a lease in the heart of hip Church Street. Teska Carson’s Fergus Evans and Luke Bisset brokered the deal for 300 sq m in 577 Church Street at $151,000 per annum net on a three-year term with a two-year option.
The circus is coming to Port Melbourne. The Circus Spot has leased a 1000 sq m clear-span warehouse at 31 Essex Street on annual rent of $95,000 net. CBRE’s Guy Naselli and Daniel Eramo said the deal was done on a five-year lease plus two further terms of five years.
Suncorp Bank sees a bright future in Bridge Road, leasing a 155 sq m corner space for its newest branch on a five-year term. The 143 Bridge Road site was leased by Fitzroys’ Terence Yeh for $106,660 per annum plus part outgoings and GST. Mr Yeh said several national tenants were interested in the space including a home loan group, furniture showrooms and real estate agents.
The Australian Institute of Superannuation Trustees (AIST) has leased a whole floor at 150 Lonsdale Street after outgrowing offices at 215 Spring Street. Colliers International’s Shane Burns introduced the tenant to Knight Frank and Charter Hall, securing a 10-year lease term on level 23 for net face rent between $410-$420 per sq m. In another deal, Ascom Wireless Solutions secured 200 sq m at 390 St Kilda Road earlier this month at $285 per sq m. Lucy Martin negotiated the three-year lease term. Ms Martin also negotiated Clickon Furniture leasing a ground-level showroom at 3 St Kilda Road, St Kilda, on a five-year term at face rent around $300 per sq m. Further out in Mulgrave, NGT Marketing committed to 348 sq m at 799 Springvale Road, Mulgrave, at a rate of $285 per sq m, Ash Dean and Chris Meehan said. Mr Meehan, along with Damien Atkins, also leased Grey Innovation additional office space on level four at 543 Bridge Road in Richmond on a five-year lease term for an 785 sq m office at $365 per sq m.
Mahogany by Hand, maker and designer of mahogany furniture, has taken a warehouse lease at 110-118 Cochranes Road. Savills Australia’s Gareth Jackson said the business will pay about $125,290 per annum on a three-year lease with options for the 1340 sq m office and warehouse. Meanwhile, in Noble Park, airconditioning manufacturer and distributor Seeley International took a five-year lease at a rental believed to be around $160,000 per annum for a refurbished office at 480 Princes Highway. The property will become the firm’s new Melbourne headquarters, Daniel Kelly, in association with Mark Spigelman from Lawson Real Estate, said.
About Space Lighting has consolidated two existing warehouses into one lease over 1700 sq m of office/warehouse space at 10 The Crossway. Knight Frank’s Scott Braithwaite and Daniel De Sanctis said the rental was undisclosed but comparable rentals in the area range from $60 to $75 per sq m.
CBRE has expanded its Victorian development sites team with the appointment of former Ray White sales agents Jimmy Tat, Leon Ma and David Silcock.
Donald Cant Watts Corke has appointed Mark Vass as a senior-level director on its Victorian quantity surveying team.
Colliers International has beefed up its CBD retail division, employing Brigitte Doupe as a retail leasing executive. Ms Doupe was previously with KordaMentha Real Estate.
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