Market wrap

Sales

CBD

A shop on the ground floor of the Century Building at 261 Little Collins Street sold to a local private investor after auction for $3,300,000, about $270,000 above reserve. The price translated to almost $29,000 per square metre over building area, CBRE selling agents Josh Rutman, Ed Wright and Mark Wizel said. The property had 13 months left to run on a lease to fashion retailer Bell & Barnett.

Private investors snapped up three floors in the strata-titled office building at 470 Collins Street, formerly Singapore Airlines House. A pre-auction contest broke out over level seven and, after it sold, the underbidder instead bought levels one and two. Industry sources say the combined sale price is believed to be more than $4.5 million.

FITZROY NORTH

A major development site at 392 St Georges Road in Fitzroy North has sold for more than $6 million to a local private developer. The 1588-square-metre property had street frontages to St Georges Road and Bundara Street, DTZ's Patrick O'Callaghan said. It was sold on behalf of mortgagee in possession agents KordaMentha.

FRANKSTON

An investment property with a secure lease to Westpac, at 50-52 Wells Street and 1 Shannon Mall, sold at auction for $5.375 million. Four bidders competed, which resulted in a yield of 6.2 per cent, said Fitzroys' Charles Emmett. The two-level premises with a building area of 736 square metres was recently refurbished. It was sold subject to secure leases to Westpac, $286,973.42 a year plus outgoings, and Xtreme Clothing, $52,000 a year plus outgoings.

CARNEGIE

Three strip shops in Koornang Road sold for a total of $8.14 million at auction. The stores at 93, 95 and 97-99 Koonang Road were sold by Gross Waddell's Daniel Greenlees and Sutherland Farrelly's Paul Sutherland. The Cheap Shop went for $2.55 million on yield of 3.74 per cent, Australia Post sold for $2.35 million (yield 3.84 per cent) and the Westpac Bank shop went for $3.24 million (yield 3.9 per cent).

Leases

CBD

International fashion retailer Rhodes & Beckett has renewed its five-year lease for an annual rental of $1461 per square metre at 495 Collins Street. The store was at the forefront of a westward shift in retail outlets, CBRE's Zelman Ainsworth and Cam Taranto said.

DANDENONG SOUTH

Kumho Tyres Australia has pre-leased a new art office/warehouse to be built by industrial developer Elite Property Group. The 10,500-square-metre, purpose-built facility will be used by Kumho as a tyre storage and distribution hub on a 12-year term.

KEW

Jasco Consulting has leased 500 square metres on level one at 369 High Street. Elsewhere in the suburb, iHR Australia took 240 square metres of space in the business park at 828 High Street. The rents are $275 to $300 per square metre. The deals were negotiated by Matt Brown-Greaves of Kelly & Kelly.

Submissions to sjohanson@fairfaxmedia.com.au or cvedelago@fairfaxmedia.com.au