MARKET WRAP
CBD
More than 90 people turned out to watch a three-storey building sell under the hammer for $2.203 million after competitive bidding from five parties. A local owner occupier took 62-64 Little La Trobe Street, which offers about 368 sq m of floor space. With vacant possession, it was sold by Josh Rutman, Ed Wright and Mark Wizel of CBRE.
CLAYTON SOUTH
Virtus Property Group has bought a sizeable industrial property for $7.2 million, delivering a yield of almost 8.5 per cent. The 8741 sq m building is leased to Toll Transport. The new owner is planning to build two 2050 sq m buildings on the 30,730 sq m property. The deal was negotiated by Knight Frank's Dane Nichols and Lynton Williams of Savills. The site at 86-102 Whiteside Road had been purchased for $8.69 million in early 2008.
WEST FOOTSCRAY
All Metal Recyclers has paid nearly $900,000 for an office/warehouse facility. The older 1300 sq m building at 379 Somerville Road was owned by a Victoria-based investment syndicate. Luke Jesson and Ben Hegerty of Savills negotiated the sale.
Leases
FERNTREE GULLY
Pet, garden and pool supplier City Farmers is opening a 1253 sq m showroom at the bulk goods centre at 794 Burwood Highway. Rents are believed to be around $170 per sq m. The lease was negotiated by Keith Kooloos of Savills.
MOUNT WAVERLEY
Communications industry association InfoComm International is moving from Oakleigh to a 261 sq m office suite at 7/14 Lionel Road on a three-year term for about $57,000 per annum. Daniel Kelly of Savills negotiated the deal.
PRAHRAN
Charter Security is moving its headquarters from South Melbourne to 466 Malvern Road in a five-year deal for 500 sq m in a two-storey building, according to Jason Burmistrow and Michael Simonds of Jones Lang LaSalle.
SOUTHBANK
International restaurant chain TGI Friday's has continued its expansion in Melbourne, taking a prominent spot at the bottom of Freshwater Place. The 621 sq m spot in the popular foodie precinct was occupied by Korean restaurant YAR. CBRE's Zelman Ainsworth said TGI's signed a 10-year lease. The rent is about $400,000-$500,000 a year. The Southbank outlet is the sixth Melbourne restaurant for the American eatery, which arrived in Australia in 1995. Another is expected to open in Doncaster.
TULLAMARINE
Direct Couriers is moving to a modern warehouse close to the airport in a 10-year lease deal. The company is believed to be paying about $110 per sq m for the 6117 sq m building at 103-121 Western Avenue. Marco Sandrin of Colliers International negotiated the deal.
Movers
Cam Taranto has joined CBRE as a senior negotiator in the retail services team.
Correction: Last week, the name of Colliers International agent Sasan Misaghian was misspelt as Susan.
Frequently Asked Questions about this Article…
The wrap reports several Melbourne sales: a three‑storey building at 62–64 Little La Trobe Street sold under the hammer for $2.203 million (about 368 sq m) to a local owner‑occupier; Virtus Property Group bought an industrial site at 86–102 Whiteside Road for $7.2 million; and All Metal Recyclers paid nearly $900,000 for a 1,300 sq m office/warehouse at 379 Somerville Road.
Virtus Property Group purchased an 8,741 sq m industrial building at 86–102 Whiteside Road for $7.2 million. The building is leased to Toll Transport and the deal reportedly delivered a yield of almost 8.5%. The 30,730 sq m site also has plans to accommodate two new 2,050 sq m buildings.
City Farmers leased a 1,253 sq m showroom at the bulk goods centre, 794 Burwood Highway, with rents around $170 per sq m. International restaurant chain TGI Friday’s signed a 10‑year lease for a prominent 621 sq m site at the bottom of Freshwater Place in Southbank, with annual rent reported around $400,000–$500,000.
Leases reported include InfoComm International relocating to a 261 sq m office suite at 7/14 Lionel Road on a three‑year term for about $57,000 per annum; Charter Security moving its headquarters to 466 Malvern Road in a five‑year, 500 sq m deal; and Direct Couriers signing a 10‑year lease for a modern 6,117 sq m warehouse near Tullamarine, believed to be paying about $110 per sq m.
The deals involved a range of brokers: Josh Rutman, Ed Wright and Mark Wizel of CBRE; Dane Nichols (Knight Frank) and Lynton Williams (Savills) on the Virtus purchase; Luke Jesson and Ben Hegerty (Savills); Keith Kooloos (Savills); Daniel Kelly (Savills); Jason Burmistrow and Michael Simonds (Jones Lang LaSalle); Zelman Ainsworth (CBRE); and Marco Sandrin (Colliers International).
The wrap highlights a variety of property sizes and types: a 368 sq m three‑storey commercial building, an 8,741 sq m industrial building on a 30,730 sq m site, a 1,300 sq m office/warehouse, a 1,253 sq m showroom, a 261 sq m office suite, a 500 sq m HQ space, a 621 sq m restaurant outlet and a 6,117 sq m modern warehouse.
Yes. Cam Taranto joined CBRE as a senior negotiator in the retail services team. Also, the wrap issued a correction noting Colliers International agent Sasan Misaghian’s name was previously misspelt as Susan.
The article provides concrete examples investors can reference: Virtus’s industrial purchase delivered a near 8.5% yield, City Farmers’ showroom attracted rents of about $170 per sq m, and Direct Couriers’ warehouse lease is reported at about $110 per sq m. These headline yields and per‑square‑metre rents offer snapshot comparators for investors assessing industrial, retail and logistics opportunities in the Melbourne market.
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