MARKET WRAP
Brookfield Multiplex has been appointed to design and construct the University of Melbourne's $100 million architecture, building and planning faculty in Masson Road, Parkville. The new John Wardle Architects-designed building will span six levels and house 17,488 square metres of space. Construction will start by the end of 2014.
Leasing
CAROLINE SPRINGS
Officeworks will become the anchor tenant of a $50 million bulkgoods retailing centre on the Western Highway. The office supplies giant has taken a 1775 square metre showroom in the 33,000 sq m development. The deal was negotiated by Michael Green of Savills. Rents for similar spaces in the area are believed to be around $180 per sq m net.
CBD
Consultancy firm Boleh has taken a 50 sq m office in the B-grade building at 470 Collins Street. The two-year lease term is expected to return gross face rents of $400-$420 per sq m. Adam Davy of Colliers International negotiated the deal. Mr Davy was also responsible for placing education group Asia Pacific College in 605 sq m of subleased office space at 422 Little Collins Street. Rents for the two-year term are around $300-$350 per sq m. It had been previously occupied by Cambridge International College.
DANDENONG SOUTH
HAB Investment Pty Ltd has found a tenant to sublease the vacant industrial space it owns in Australand's The Key Industrial Park. International steering and driveline developer Nexteer Automotive has taken nearly 2000 sq m on a four-year term. The deal was negotiated by Paul Jones and Justin Fried of Colliers International. Rent for the sublease is believed to be around $82 per sq m.
NOTTING HILL
Packaging experts Tetra Pak has moved its Victorian headquarters to offices in Ferntree Business Park in Notting Hill. David Kelley of Savills said the group took a 565 sq m space. Rents in the complex for similar properties are believed to be about $200-$220 a sq m net.
FITZROY
Aunt Maggie's, an upmarket health foods retailer from Carlisle Street, Balaclava, will open an outlet at 188 Gertrude Street, Fitzroy. The food store will take 282 sq m of ground floor space for annual rental of $90,000 net, in a deal negotiated by GrayJohnson director Matt Hoath. The existing tenant, long-established art supply house Deans Art, will consolidate to a smaller area.
Sales
NORTH MELBOURNE
Southern Cross Education Institute has paid $3,550,000 for a two-storey office at 155-161 Boundary Road in North Melbourne. ICR Property Group selling agent Guy Naselli said the building was offered as vacant possession. Another deal up the road, at number 127-133, resulted in a two-level office/warehouse with showroom selling for $1,060,000 to a private investor.
CBD
Savills believes a new price record may have been set for retail space outside Swanston Street by the sale of the ground floor shop at 188 Little Collins Street. A local private investor spent $1.65 million - or $50,769 per s qm - to buy the 32.5 sq m, which is currently leased to British fashion brand Fred Perry. The sale achieved a passing yield of 5.67 per cent, according to agents Nick Peden and Clinton Baxter.
MELTON
Two securely leased medical centres in Melbourne's outer suburbs have sold by expression of interest. Lemon Baxter agent Jonathan Walls sold the centre at 386 High Street, Melton, for $1.255 million and 3 Clifton Drive, Bacchus Marsh, for $705,000. Both centres had five years remaining on first term leases with options.
CBD
Boutique developer Drapac has sold another suite in its "140 East" strata development for $725,00. The buyer was a Malaysian investor drawn to the returns offered by the 131 sq m tenancy, which is leased to a consultancy firm on a three-year term with a five-year option. The deal was negotiated by Tom Tuxworth and Ed Wright of CBRE. Drapac's 10-level development at 140 Bourke Street is now 80 per cent sold.
CREMORNE
An owner-occupier has purchased the Rothelowman-designed 300 sq m stand-alone office building at 95 Green Street, Cremorne for $1.29 million. Matt Brown-Greaves of Kelly & Kelly Property did the deal.
SUNSHINE
More people are now looking to buy rather than lease, according to Knight Frank's Joel Davy. Mr Davy has sold a 780 sq m warehouse at 56 Enterprise Way for $850,000 and a 958 sq m property at 27 Venture Drive for $1 million. An offshore buyer purchased 575 and 575A Somerville Road in Sunshine for $1.41 million.
Movers
Terry Dohnt has moved from Grant Samuel Corporate Property to Knight Frank. Mr Dohnt, with 25 years' experience in the industry, has become director of special projects and leasing for the group's Melbourne and Sydney operations. Meanwhile, Peter Phillips has joined the firm's project management and building consultancy team after leaving a similar role at Napier & Blakeley.
Frequently Asked Questions about this Article…
Brookfield Multiplex was appointed to design and construct a $100 million Architecture, Building and Planning faculty building for the University of Melbourne on Masson Road, Parkville. The John Wardle Architects–designed building will span six levels and about 17,488 square metres, with construction due to start by the end of 2014.
Officeworks agreed to be the anchor tenant of a $50 million bulk‑goods retail centre on the Western Highway, taking a 1,775 sqm showroom in the 33,000 sqm development. The article notes comparable rents in the area are around $180 per sqm net, which gives investors a snapshot of expected retail bulk‑goods leasing rates in that precinct.
The article cites several CBD deals: consultancy Boleh took a 50 sqm office at 470 Collins Street on a two‑year lease expected to return gross face rents of $400–$420 per sqm; Asia Pacific College took 605 sqm of subleased space at 422 Little Collins Street at rents around $300–$350 per sqm for a two‑year term. These examples show a range of gross face rents for B‑grade and subleased office space in the CBD.
HAB Investment Pty Ltd subleased a vacant industrial space in Australand’s The Key Industrial Park to Nexteer Automotive, an international steering and driveline developer. Nexteer took nearly 2,000 sqm on a four‑year term, with the sublease rent believed to be about $82 per sqm.
Packaging specialist Tetra Pak moved its Victorian headquarters to 565 sqm of offices in Ferntree Business Park, Notting Hill, with rents in the complex believed to be about $200–$220 per sqm net. Retailer Aunt Maggie’s will open a 282 sqm outlet at 188 Gertrude Street, Fitzroy, on an annual net rental of $90,000—details that illustrate tenant demand and rent levels for specialist retail and corporate HQ space.
A couple of examples: a ground‑floor retail shop at 188 Little Collins Street (32.5 sqm) sold to a local private investor for $1.65 million — about $50,769 per sqm — achieving a passing yield of 5.67% while leased to British brand Fred Perry. Southern Cross Education Institute paid $3.55 million for a two‑storey office at 155–161 Boundary Road, North Melbourne. The article also reports the sale of two medical centres in Melbourne’s outer suburbs (Melton and Bacchus Marsh) sold by expression of interest for $1.255 million and $705,000 respectively, each with five years remaining on leases.
Yes. The article cites examples such as a Malaysian investor purchasing a 131 sqm suite in Drapac’s '140 East' strata development for $725,000, and an offshore buyer acquiring properties in Sunshine for about $1.41 million. These transactions indicate continued offshore interest in Melbourne commercial and strata investments.
The article notes Terry Dohnt moved from Grant Samuel Corporate Property to Knight Frank as director of special projects and leasing for Melbourne and Sydney, and Peter Phillips joined Knight Frank’s project management and building consultancy team. For investors, such moves can signal shifts in local market expertise and relationships that may influence deal flow, advisory strength and local leasing or sales activity.
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