Market wrap
BLACKBURN
An industrial property leased to a building supplies firm has sold for $815,000 on a yield of 6.8 per cent. The 400-square-metre industrial building at 16 Cottage Street (below) was bought by a private investor, according to Matt Hoath of Gray Johnson. The annual rent is $54,920.
CARLTON
Strong interest at auction saw the double-storey Victorian terrace at 678 Swanston Street in Carlton sell for $1.45 million - 20 per cent above its reserve. An owner-occupier, a Chinese restaurant, will set up shop in the 150-square-metre property. The campaign was handled by Chris Kombi of Fitzroys.
SUNBURY
A private investor has paid $655,000 for a Sunbury shopfront leased to the RACV. Despite passing in at auction and selling later, the 225-square-metre retail space at 73 O'Shanassy Street achieved a yield of 6.5 per cent thanks to competition between three parties. The RACV has signed a new five-year lease. The sale was handled by Dean Alexander of Fitzroys.
LEASES
CBD
Salta Properties is moving from Port Melbourne to the city in a 10-year leasing deal worth more than $10 million. The family-owned construction firm is leaving its home of 15 years in Lorimer Street, Port Melbourne, after selling the property to GPT early last year. It will occupy level 26 of 35 Collins Street, which is owned by AMP Capital Wholesale Office Fund.
CBD
Keolis, the French company that is contracted to run Yarra Trams, is opening an office in the heart of Melbourne's legal precinct. The group's local subsidiary, KDR Victoria, has taken 190 square metres of space in 451 Little Bourke Street on a three-year lease. The rent is about $440 per square metre net. The landlord is Australian fashion industry player Najee Imam, according to Louise Nicoll of Savills.
MOUNT WAVERLEY
Wire and cable company General Cable is moving premises in Mount Waverley, taking space in a recently completed, speculatively built office complex at 205-211 Forster Road. The 700-square-metre property has been leased for five years on a rent of $250 per square metre. The deal was done by Daniel Kelly of Savills.
ROWVILLE
Electric motor company Techtop Australia has leased an office and warehouse facility at 26 Kingsley Close (below). The company, which is an importer and distributor, has taken 1088 square metres on a rent of $84,000 per annum. The deal was negotiated by Daniel Kelly of Savills.
MOVERS
Michael Tucker has been appointed as the general manger of construction for Devine Group. Mr Tucker was previously the executive general manager of retirement developments for FKP.
Frequently Asked Questions about this Article…
Recent deals in the article show yields around the mid-single digits: a Blackburn 400 sqm industrial building at 16 Cottage Street sold for $815,000 on a 6.8% yield (annual rent $54,920), and a Sunbury shopfront at 73 O'Shanassy Street leased to the RACV sold for $655,000 on a 6.5% yield.
A private investor purchased the 400-square-metre industrial building at 16 Cottage Street, Blackburn, for $815,000. The property was leased to a building supplies firm and produced annual rent of $54,920, giving a 6.8% yield, according to Matt Hoath of Gray Johnson.
The double-storey Victorian terrace at 678 Swanston Street, Carlton (about 150 sqm), sold at auction for $1.45 million — roughly 20% above its reserve. It will be owner-occupied by a Chinese restaurant. For investors, the sale highlights strong owner-occupier demand in well-located retail or mixed-use properties.
The 225-square-metre retail space at 73 O'Shanassy Street, Sunbury, achieved a sale price of $655,000 after passing in at auction and then selling amid competition from three parties. The RACV has signed a new five-year lease, producing a 6.5% yield. The sale was handled by Dean Alexander of Fitzroys.
Salta Properties agreed a 10-year CBD leasing deal worth more than $10 million to occupy level 26 at 35 Collins Street (owned by AMP Capital Wholesale Office Fund) after selling its Port Melbourne site to GPT. Separately, Keolis’s local subsidiary KDR Victoria took 190 sqm at 451 Little Bourke Street on a three-year lease at about $440 per sqm net.
In Mount Waverley, General Cable leased 700 sqm at 205–211 Forster Road on a five-year deal at $250 per sqm. In Rowville, electric motor importer/distributor Techtop Australia leased an office/warehouse of 1,088 sqm at 26 Kingsley Close for $84,000 per annum. Both deals were negotiated by Savills’ Daniel Kelly.
The article shows a range of lease lengths and tenant types — from a 10-year corporate lease (Salta) and a new five-year lease with a strong tenant (RACV) to shorter three-year leases (KDR Victoria) and owner-occupier outcomes (Carlton). For investors, longer leases and creditworthy tenants can support stable income and lower vacancy risk, while owner-occupier sales can push prices up in attractive locations.
Michael Tucker has been appointed general manager of construction for Devine Group. He was previously the executive general manager of retirement developments for FKP.
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