HIGHETT
Woolies appoints agent
COLLIERS International has been appointed as the sole leasing agent for Woolworths' new development in Highett. Anchored by a 4100 sq m Woolworths supermarket, the development will also include 14 specialty shops. The appointment coincides with the expansion of Colliers' Victorian retail division to include a new project leasing department. Led by senior executive David Warren, the department will also take on the leasing responsibilities for Woolworths' development in Cowes. He said the project leasing team was also in talks with several other shopping centre owners.
CROYDON
New space sells fast
A MELBOURNE private investor has paid $840,000 on an 8 per cent net yield for an industrial property at Croydon in Melbourne's east. The deal was negotiated by Savills Australia's Adrian Smith and Lynton Williams. Located at unit 16, 114-118 Merrindale Drive on the Merrindale Business Park, the property comprises a near new 600 square-metre office and warehouse developed by Cincotta Constructions. It features natural light and a lofty, clear-span warehouse. The property was sold subject to a six-year lease with a six-year option to R. Mensa, trading as Creative Concrete Concepts. Mr Smith said the property had only been on the market for one month.
NOTTING HILL
Warehouse snapped up
AN OFFICE-warehouse investment in Notting Hill leased to a long-standing international tenant offered for private sale by Crabtrees Real Estate has sold within a week of being offered on a 7 per cent yield. The property Unit 10/15 Howleys Road in Notting Hill is within the Monash University scientific precinct. It attracted interest from small investors and self-managed superannuation funds. The building, with a total area of 327 sq m, was built in 2001 and has a warehouse with good internal clearance. The base rent of $47,174 per annum rises each year by 3 per cent, but is currently set at $49,413, and is adjoined by a two-storey office component with an area of 168 sq m. The property is zoned Business 3. The tenant Hach Pacific occupies the property under a lease with an eight-year term that began in July 2010, and includes an option to renew for two further five-year terms. Hach Pacific designs, develops and distributes online and portable laboratory equipment for the measurement of air, water and other liquids.
CAMBERWELL
SSP scoops sublease
FITTED office space in Melbourne's inner east is increasingly popular. Michael Darvell, Colliers International senior executive, office leasing, recently negotiated a three-year sublease to SSP Asia Pacific at level 3, 293 Camberwell Road in Camberwell. The sublease for 550 sq m was marketed at $315 per sq m, and included a high-quality existing fitout. The building itself is also undergoing refurbishment. Mr Darvell also negotiated a new lease for 600 sq m of fitted space at a nearby property at 248 Burwood Highway. New tenant Xero took the whole building on a short-term lease from lessor Hacer Group. In another deal, 450 sq m of fitted space was taken up at 431 Burke Road in Glen Iris.
VICTORIA
Property in the pages
A NEW publication detailing the selection of industrial properties, land estates and pre-commitment opportunities across Victoria has been launched by Colliers International. The 32-page Industrial Solutions publication gives access to 35 properties in one place. The properties for sale and lease include design-and-construct opportunities and vacant industrial land. Tony Iuliano, Colliers national director, industrial, said increasing freight movements, demand from logistics and retail firms and a shortage of A-grade stock were set to be dominant trends for the Melbourne industrial sector in 2012. To meet demand for industrial property, Colliers is running an industrial investment seminar tomorrow. It will feature presentations from Colliers associate, industrial, Chris Jones private wealth adviser Ben Cranage, of Cranage Private Wealth commercial lending specialist Darren Smith, director of Balmain and MAB Corporation general manager Richard Johnston.
Frequently Asked Questions about this Article…
What role has Colliers International been appointed for Woolworths’ new Highett development?
According to the article, Colliers International was appointed the sole leasing agent for Woolworths’ new Highett development, which is anchored by a 4,100 sq m Woolworths supermarket and will include 14 specialty shops. The appointment coincides with Colliers expanding its Victorian retail division to include a project leasing department led by senior executive David Warren.
What were the details of the Croydon industrial property sale and the yield paid by the buyer?
A Melbourne private investor paid $840,000 for an industrial property in Croydon on an 8% net yield. The property (Unit 16, 114–118 Merrindale Drive) is a near‑new 600 sq m office and warehouse developed by Cincotta Constructions, sold subject to a six‑year lease with a six‑year option to R. Mensa trading as Creative Concrete Concepts, and was negotiated by Savills Australia’s Adrian Smith and Lynton Williams.
What made the Notting Hill office‑warehouse investment attractive and who is the tenant?
The Notting Hill property (Unit 10/15 Howleys Road) sold within a week on a 7% yield and appealed to small investors and self‑managed super funds due to its location in the Monash University scientific precinct and an established tenant. Hach Pacific occupies the 327 sq m building under an eight‑year lease that began in July 2010, with options for two further five‑year terms; the property includes a 168 sq m two‑storey office and a warehouse with good internal clearance.
What are the details of the Camberwell sublease to SSP Asia Pacific and market pricing?
A three‑year sublease of fitted office space at Level 3, 293 Camberwell Road (550 sq m) was negotiated to SSP Asia Pacific and was marketed at $315 per sq m. The deal included a high‑quality existing fitout and the building is undergoing refurbishment, according to Colliers International executive Michael Darvell.
How has demand for fitted office space been reflected in nearby leasing activity?
The article notes rising popularity for fitted office space in Melbourne’s inner east: Colliers negotiated a new lease for 600 sq m of fitted space at 248 Burwood Highway (taken short‑term by Xero from lessor Hacer Group) and 450 sq m of fitted space at 431 Burke Road in Glen Iris also leased recently, showing active short‑term and fitted-space demand.
What is Colliers’ new Industrial Solutions publication and how can investors use it?
Colliers launched a 32‑page Industrial Solutions publication that compiles 35 industrial properties across Victoria — including design‑and‑construct opportunities, land estates and vacant industrial land — to help investors find sale and lease opportunities in one place.
What industrial sector trends did Colliers highlight for Melbourne investors?
Colliers’ national industrial director Tony Iuliano highlighted increasing freight movements, growing demand from logistics and retail firms, and a shortage of A‑grade stock as dominant trends for the Melbourne industrial sector referenced in the article. To address demand, Colliers was also running an industrial investment seminar featuring sector specialists.
What types of investors and buyers were active in the transactions reported in the article?
The article shows a mix of active buyers: private investors (for the Croydon asset), small investors and self‑managed superannuation funds (for Notting Hill), and corporate tenants taking short‑term fitted leases (such as Xero). These examples reflect interest from yield‑seeking private buyers and occupier‑driven leases in the Melbourne market covered.
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