SALES
Oakleigh
What's baby-blue, heritage-listed, art deco and sold for $1.22 million? It's a freehold shop on 13 Station Street that, according to Crabtrees Real Estate's Chris McKenzie and Matthew Marenko, attracted seven bidders from a 200-strong crowd. The sale sets a new record for the area of $7394 per square metre, Mr Marenko said. The property was occupied by Holmes & Holmes Solicitors for 25 years before they handed the keys to a neighbour, Ash Financial Services.
Cremorne
A three-level office at 110 Cubitt street has sold on a 6.25 per cent yield for $5.04 million. Dawkins Occhiuto's Andrew Dawkins said the office has been occupied by Icon for many years. The sale price represents a strong building rate of $7570 per sq m. "Tenant demand is strong and vacancy almost non-existent, driving rents to record levels," he said.
Cremorne
In the same suburb, an owner-occupier paid $5.1 million for a solid brick warehouse at 11-13 Cubitt Street. Teska Carson's Matthew Feld, who sold the property in conjunction with Lemon Baxter's Paul O'Sullivan and Ned Kukic, said five bidders from the massive 100-strong crowd drove the price well past the reserve.
Clayton South
McCormick Foods' head office at 63-69 Fairbank Road, offered with expectations around $5.5 million, has sold instead for $6 million on a passing yield of 7.3 per cent, Gorman Kelly's David Minton said. Given it had only four years remaining on the lease, it was a strong result. Low interest rates and limited supply has led to "significant compression in yields" with similar sized assets historically selling for around 8.5 per cent, he said.
Richmond
A two-level retail outlet at 394 Victoria Street with two income streams from long-standing tenants has sold at auction for $2.8 million. The tenancies produce rental income of $103,307 plus GST. Gray Johnson agent Scott Ashby said the indicative yield was a sharp 3.6 per cent. The street level space is occupied by Soundbay, a national retailer of sound and DJ equipment, while the upper level is leased to long-term tenant Steve Gration Textiles.
Clayton South
An online children's clothing business has snapped up a 611 sq m office warehouse at 4/126-134 Fairbank Road for $850,000 in a deal negotiated by Crabtrees Real Estate's Luke Pitcher. Moving from Mulgrave, the owner occupiers spent almost 12 months searching for a suitable warehouse. "The lack of good-quality older-style buildings and low interest rates are contributing to the strength of the second-hand market," Mr Pitcher said.
Dandenong South
Glamourflage skin care group has paid $4.4 million for a factory at 42-52 Arkwright Drive, Cameron's Al Armstrong and Angus Clark said. The building is in the Logis Estate. In another deal, an owner-occupier has purchased a 1762 sq m warehouse at 37-39 Ordish Road for $1.888 million.
LEASES
Melbourne
Encoo Communications and Recordpoint are the newest tenants to commit to the classical heritage-style building of 15 Queen Street. The tech firm leased 120 sq m on the ground floor on a five-year term, while Recordpoint has secured 123 sq m on a three-year term on level 4, said JLL's Alexandra Harper, Zak Seccull and William McLaughlin.
Melbourne
Giancorp Property Group's tower at 385 Little Lonsdale Street has reached 100 per cent occupancy with Watpac and Smaart Recruitment taking the last remaining spaces, CBRE's Patrick Mount and Scott McGlone said. Both deals were for about 300 sq m. Terms were confidential but rents in the building have previously been quoted around the mid-$400s per per square metre gross
Pakenham
Specialist bedding and mattress retailer, Regal Sleep Solutions has taken space in the Pakenham Lifestyle Centre at 825 Princes Highway – bringing its network to 14 stores across Victoria. CBRE's Tom Perkins negotiated the lease agreement for the new 285 sq m showroom. Rents throughout the centre range from approximately $185 to $300 sq m. Meanwhile, transportation solutions provider, Trapeze Group, will expand into a 270 sq m modern suite in the Chifley Business Park at 3 Joseph Avenue in Moorabbin, said CBRE's Elise Betts who negotiated a five-year lease agreement on behalf of Goodman.
Dandenong South
A commercial tenant specialising in infrastructure has leased a new facility at 57-67 Letcon Drive. The 6729 sq m building has 15,000 sq m of concrete hardstand, full drive-around access and an extensive office area, CBRE's James Jorgensen and David Aiello said. The pair leased the building on behalf of Lettieri Property Group on a five-year term on an initial rental of $119 per sq m net.
Dandenong
Access Service Australia has signed a five-year lease on a 2070 sq m distribution facility. CBRE's Josh Fitt and Bryce Pane, in conjunction with Charlie Betts of Nixon Industrial, negotiated the five-year lease for 32 Healey Road. Rents in the area are around $75 per sq m net. Mr Fitt said the property's large hardstand component was pivotal to the deal.
Port Melbourne
A corporate 605 sq m, office-warehouse has been leased by CBRE's Guy Naselli and Daniel Eramo to a South Melbourne finance company. The two-level office and clear-span warehouse at 4 Westside Avenue was let for $85,000 pa net on a three-year lease on behalf of its owner, Rapid Finance, which recently bought a larger office in Lorimer Street, Port Melbourne.
Dandenong South
Cameron's Angus Clark and Al Armstrong have leased a 2810 sq m office-warehouse at 5 Fowler Road to Fulton Hogan for $260,000 per annum. In another deal at 9 Business Park Drive, Lynbrook, Avem has moved into a 2507 sq m building it leased for $205,000 per annum for five years.
Notting Hill
ASX-listed Clean TeQ has leased 479 sq m of office space at unit 12/ 21 Howleys Road, David Minton from GormanKelly said. The group will move from nearby Ferntree Business Park, signing a five-year lease at a commencing rental of $135,000 net a year. Clean TeQ were given a short rent-free period equivalent to around 5 per cent as an incentive.
Bayswater
Multiple bidders looking to top up their self-managed super funds pumped up the price of 31 London Drive, Lawson Real Estate's Steven Lawson said. The modern industrial property was knocked down for $771,000 on a yield of 4.9 per cent, he said.
MOVERS
- The Property Council of Australia has appointed Sally Capp as its new Victorian executive director starting next month. Ms Capp is currently chief operating officer of the Victorian Chamber of Commerce and Industry and has extensive experience in executive roles in government and business.
- Cropley Commercial has appointed Peter Grieve as director of its valuation business. Mr Grieve has specialised in hotel and motels for the past 25 years, working at McGees, JLL and CBRE before joining Cropley.
- Tony Aminian has struck out on his own, opening Simple Industrial Commercial to service the south-east market. "With a thriving and growing industrial market ... the time was right to take on this next adventure," Mr Aminian said.
- The joint-directors of Barry Plant's Coburg and Pascoe Vale offices, Rocco Siciliano and David Devlin, have expanded their successful operation, establishing a Brunswick office at 1/32-34 Lygon Street in a vibrant cafe precinct.
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