MARKET WRAP
Sales
CBD
The home of Elephant Backpacker, opposite Flinders Street Station on the corner of Degraves Street, has sold for more than $6.6 million. It has a ground floor entrance foyer, basement and three upper levels which generates annual cash flow from backpackers of about $1.4 million, Kliger Wood agents Grant McKenzie and Russell Meerkin said.
DANDENONG
A large industrial office warehouse in Dandenong has sold for $1.8 million. The property at 449 Hammond Road, with a total building area of 1929 square metres, was leased to Safer Storage Systems at a rental of $164,000 reflecting a yield of 9.1 per cent and purchased by a private buyer, estate agent Philip Prowse said.
DANDENONG
Pellicano-ISPT has racked up $14.5 million worth of industrial land sales in the Innovation Park development in Dandenong, with stages 1 and 2 of the project now sold out. Local developer Lettieri Group bought five allotments totalling 52,000 sq m, while another 36,000 sq m of space went to other buyers. The average price achieved was $165 per sq m. The deals were negotiated by Kosta Filinis of Jones Lang LaSalle. Innovation Park is a $350 million project located on Frankston-Dandenong Road.
DERRIMUT
Private investor Deltastar Pty Ltd has paid $3.975 million for an industrial facility in Derrimut's Paramount Industrial Estate. The 4226 sq m building, which is leased to twine and yarn supplier Tapex, was sold by developer Makland Group on 8 per cent yield. The off-market deal was negotiated by Nathan Bingham and Chris Jones of Colliers International.
CAMBERWELL
Melbourne investor Brendan Sullivan has sold a showroom-warehouse in Melbourne's East Camberwell for $4.1 million on a 5.5 per cent yield. Located opposite Woolworths at 755-757 Riversdale Road in a tightly held retail strip, the property has two older showrooms of 650 sq m on a 900 sq m allotment. Mr Sullivan said the property returns $230,000 per annum net on five year leases to My Pet Warehouse and Video Ezy. It was sold to a private investor.
Leases
CBD
Print, copy and internet services provider Print on Demand has agreed to lease 130 sq m of ground floor retail in the CQ Building at 123 Queen Street. Rent is believed to be around $100,000 per annum net. Savills Australia's Michael Di Carlo, who brokered the deal with colleague Jeremy Marmur, said Print on Demand had been looking for CBD space following the success of its South Melbourne operation.
RICHMOND
Digital media company IE Agency, which numbers Converse, Hoyts and Lonely Planet among its clients, is relocating from Windsor to Richmond. The firm has taken the full 868 sq m space available at 9 Brighton Street on a five year term. The rent is $200 per sq m plus another $28,880 per year for a dozen car parking spots. Jake Eisen of Kelly & Kelly Property represented the tenant, and Nick Bade of Lemon Baxter represented the owner.
SOUTH YARRA
Italian franchise Konopizza, which serves pizza rolled into a cone-shape and baked, is opening its first Australian outlet in the Jam Factory. The group has taken 60 sq m in the popular South Yarra shopping complex on Chapel Street, which recently underwent a $20 million refurbishment. The deal was negotiated by Max Cookes and Zelman Ainsworth of CBRE. Founded in 2005, Konopizza has pursued an aggressive expansion campaign, with Australia marking its 18th international outlet.
Movers
Veteran agent Mark Rasmussen has joined Savills Australia as its new divisional director of office leasing. Mr Rasmussen had been with Knight Frank for 25 years, specialising in the CBD and Docklands markets.
CBRE has promoted Anthony Park from within to head its Melbourne city fringe office services team. Mr Park, who has worked in the industry for five years, joined the firm in 2010.
Submissions to sjohanson@theage.com.au or cvedelago@theage.com.au
Frequently Asked Questions about this Article…
Recent Melbourne commercial property sales included the former Elephant Backpacker building near Flinders Street Station sold for more than $6.6 million (generating about $1.4 million annual cash flow from backpackers), a large industrial office-warehouse in Dandenong at 449 Hammond Road sold for $1.8 million (leased to Safer Storage Systems), an industrial facility in Derrimut’s Paramount Industrial Estate sold to private investor Deltastar for $3.975 million (leased to yarn supplier Tapex), and a Camberwell showroom-warehouse sold for $4.1 million returning $230,000 a year net on five-year leases.
Recent transactions showed industrial yields around 8–9% (the Dandenong warehouse reflected a 9.1% yield; the Derrimut facility sold on an 8% yield), while a suburban retail/showroom sale in Camberwell traded on a lower yield of about 5.5% and produced roughly $230,000 per annum net. These figures illustrate the range between industrial and retail cap rates reported in the article.
Innovation Park is a $350 million industrial development on Frankston–Dandenong Road. Pellicano‑ISPT recorded about $14.5 million of land sales there, with stages 1 and 2 sold out. Local developer Lettieri Group bought five allotments totalling 52,000 sq m, while another 36,000 sq m went to other buyers. The average price achieved across those sales was about $165 per square metre.
Reported leases included Print on Demand taking 130 sq m of ground floor retail in the CQ Building at 123 Queen Street in the CBD with rent believed to be around $100,000 per annum net. Digital media company IE Agency leased the full 868 sq m at 9 Brighton Street, Richmond on a five‑year term at about $200 per sq m plus $28,880 a year for a dozen car parks. In South Yarra, Konopizza took 60 sq m in the Jam Factory following the centre’s $20 million refurbishment.
The deals show a clear split between industrial and retail risk/return profiles: industrial land and warehouses are trading at higher yields (around 8–9%) and attracting investor demand, while well‑located retail/showroom assets trade at lower yields (around 5.5%) with stable rental income. Investors should note location, tenant covenant, lease length and whether a deal was on‑market or off‑market when assessing risk and expected income.
Off‑market commercial transactions do occur and can be used for strategic or discreet sales. The article cites the Derrimut industrial facility sale to private investor Deltastar as an off‑market deal negotiated by Colliers International, showing that meaningful commercial assets are sometimes transacted privately outside public listings.
Yes. IE Agency (whose clients include Converse, Hoyts and Lonely Planet) relocated from Windsor to take 868 sq m in Richmond, indicating demand for sizeable office/creative spaces. Konopizza opened its first Australian outlet in South Yarra’s Jam Factory (its 18th international outlet), reflecting retail/food‑service expansion in well‑refurbished shopping precincts. Print on Demand’s move into the CBD also signals occupier confidence from growing service providers.
Brokers and firms active in the reported deals included Kliger Wood (agents Grant McKenzie and Russell Meerkin), Jones Lang LaSalle (Kosta Filinis), Colliers International (Nathan Bingham and Chris Jones), Savills Australia (Michael Di Carlo, Jeremy Marmur), Kelly & Kelly Property (Jake Eisen), Lemon Baxter (Nick Bade), CBRE (Max Cookes, Zelman Ainsworth) and others. The wrap also noted industry moves: veteran agent Mark Rasmussen joined Savills Australia to head office leasing and CBRE promoted Anthony Park to lead its Melbourne city fringe office services team.
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