SALES
Hawthorn
A Hong Kong-based private investor paid $4.8 million on a firm 4.35 per cent yield for a retail and office investment at 669-671 Glenferrie Road. Teska Carson's Michael Taylor and Anthony Choi said the property was sold subject to three separate leases to Hooked on a seven-year term, Glenferrie Optical (three years) and an office tenant (five years) for a total annual income of $210,000. The older style, two-storey, double-fronted, 293-square-metre building has two retail tenants on the ground floor and offices upstairs with exposure to busy Glenferrie Road.
Richmond
A private investor has paid $1,855,000 for an office, studio and warehouse building at 23 Cremorne Street. Teska Carson's Matthew Feld said the property was sought after with four bidders at the well-attended auction driving the price well beyond the vendor's reserve. The modern, 300-square-metre, two-level building sold subject to a short term lease at an annual rental of $49,200.
Mount Waverley
Japara Healthcare has purchased a 4100-square-metre site in Regent Street for $6 million. It plans to put new 105-bed aged care facility on the site. Settlement is expected to be at the end of February 2016.
Prahran
Fitzroys has sold a double-fronted shop at 436-438 High Street for $2.83 million under the hammer. Chris Kombi and Michael Ryan said the final sale price reflected a 3 per cent yield. The property sold subject to a 4+5-year lease to popular eatery The Seasonal Kitchen from February 2015. It had two shops on one title with a building area of 200 square metres over a site area of 278 square metres approx with rear access.
Scoresby
A private owner-occupier has bought 13 Rocco Drive for $5.3 million. JLL's Andrew O'Connell and Simon Wellock negotiated the deal for Youellco. In another deal in Mulgrave a private investor bought an industrial office/warehouse at 42-44 Glenvale Crescent for $3.2 million. Mr O'Connell and Cameron Stuckey negotiated the deal in conjunction with Lawson Real Estate. "The lack of buildings available in this size bracket and in this location made the property very popular," Mr O'Connell said.
Braeside
A blue chip Braeside office/warehouse investment sold under the hammer for $2.12 million. Fitzroys' Chris Kombi and Dean Alexander said the property was on a generous land area of 2642 square metres with an expansive 37-metre frontage. It had a secure four-year lease to drive and control technology group Bosch Rexroth, returning $187,889 per annum plus GST and outgoings.
Kew East
A private business has snapped up an office at 714-716 High Street with vacant possession for $3,125,000, Colliers International's Peter Bremner and Hamish Burgess said. The strata building contains a mix of open plan and partitioned offices and has on-site parking.
Nunawading
GormanKelly has sold 101 Station Street for $1,224,000, a yield of 5.3 per cent. The property was leased for six years, returning $65,500 per annum. David Minton and Chris Alcock said the auction attracted four bidders which pushed the price more than 20 per cent above the reserve.
Derrimut
Omega Packaging has paid $1.23 million for a vacant site at the Paramount Industrial Estate at 9 Hunter Road in a price that equates to $134 per square metre, said Knight Frank's Matt Crofts and Joel Davy.
LEASES
CBD
Changing demographics towards a younger Asian population is impacting on retailing in the CBD, with many now able to sustain evening and late night trade resulting in increased turnover and higher rents. They are also are paying more attention to the demographic of the CBD, and adapting their retail concepts, said CBRE's Zelman Ainsworth and Samantha Hunt, highlighting a deal at Malaysian developer Mammoth's MY80 project at 410 Elisabeth Street where a 96-square-metre shop was leased to the Korean hospitality chain NeNe Chicken at $140,000 per annum with no landlord contribution on a 10-year term.
Forest Hill
Not-for-profit superannuation fund, First State Super, has agreed terms on a new lease in the Brentford Square shopping centre at 502 Canterbury Road. First State will take over the 277-square-metre tenancy vacated by NAB which had held the lease for more than 20 years, said Savills Australia's Michael Di Carlo, who negotiated the deal with Jeremy Marmur and Jock Thomson. He would not comment on the deal but First State's rent is believed to be more than $150,000 per annum on a five-year term.
Camberwell
The ground floor shop at 690 Burke Road has been leased to Shen Chinese Medicine Centre, the group's 10th traditional Chinese medicine practice in Melbourne. Fitzroys' Adam Lester and Michael Ryan negotiated the deal for the 81-square-metre space of a five-year term with a five-year option at $52,000 per annum.
Clayton
Drake International has relocated to Unipark taking Suite 56B at 195 Wellington Road as it continues to expand its operations. Colliers International's Ash Dean said the company took 340 square metres on six-year term for $295 per sqm. Meanwhile local technology company Alaress needed to relocate but wanted to remain in Camberwell, colleague Damien Adkins said. It leased 505 square metres on level 6 at 697 Burke Road for face rent of $320-$340 per sqm. In another deal Vincent Tran resigned Software AG to another five years for 250 sqm on level 5 of 607 St Kilda Road for gross face rent of $420 per sqm.
Mount Waverley
Creative Wealth Ideas has leased the remaining available unit at Central in 1 Ricketts Road. They signed a 5+5+5 year lease on the 122-square-metre office suite paying an initial net rent of $36,600 per annum. The property is now available for sale as an investment, Knight Frank's Tristan Payne said.
MOVERS
Fitzroys has made key appointments to its Management and Valuations & Advisory divisions including general manager of shopping centres Mark Adams who has been made a senior associate, Sally Hollings an associate and Mars Njoo as associate director.
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