Sales
Two industrial properties have been sold in excess of $2 million, both to investors. Number 3-5 Leah Grove were sold on a 9.5 per cent return for $1,363,000, selling agents Alex Ham and Raoul Salter of Gross Waddell Real Estate said. The other, at No. 7, was sold for $703,500.
PRESTON
Three buildings on a corner site in Preston were sold before auction for $560,000. The properties at 82, 82A Albert Street and 30 Harrow Street were bought by one of the tenants. They are leased to a panel beater, automotive repair workshop and power tools sales business for a combined annual rental income of $42,300, Gray Johnson selling agent Rory White said.
SOUTH MELBOURNE
A property at 57 Park Street in the mixed-use precinct was sold for $840,000. Agents Guy Naselli and Raff De Luise of ICR Property Group said the frontage to Park Street, alternative rear access off Kings Way and split-level rendered facade, partitioned offices and open-plan showroom appealed to buyers.
VARIOUS
Colliers International's Winter 2013 National Auction Portfolio has racked up $29.65 million of sales, including more than $9.2 million for eight properties in Victoria. Highlights included the $1.78 million achieved for a two-level, 141 sq m retail building at 776 Glenferrie Road, Hawthorn. Occupied by long-term tenant Rhodes Hair Studio, it was sold on a yield of 3.48 per cent. In Docklands, an Australia Post outlet at 839 Bourke Street was sold for $902,000 and the premises of a dry cleaners next door for $545,000. The sales were handled by Jeremy Gruzewski, Daniel Wolman and Matthew Stagg.
Leases
CBD
Singapore Airlines will move its Melbourne headquarters to 31 Queen Street, leaving its long-time premises, Singapore Airlines House at 416-420 Collins Street. The group is taking a 416 sq m spot for five years in the recently upgraded building owned by Challenger Diversified Property Group. The deal was negotiated by Marc Mengoni of Colliers International.
Asset management consultancy Assetic is headed into the CBD from the city fringe after taking a 660 sq m space in 257 Collins Street. The four-year deal was negotiated by CBRE's Adam Calleja and Mark Bolis and Gordon Wylie of sub-lessor Cushman & Wakefield.
HAWTHORN EAST
Biotech research and development group Avexa has taken the top floor of the office building at 61-63 Camberwell Road. The five-year deal for the 300 sq m space was negotiated by Jake Eisen of Kelly & Kelly Property on a rent about $350 per sq m.
KEW
Three new lease deals has taken the office complex at 79-83 High Street to full occupancy. Amber Technology has subleased 400 sq m for three years, while LMT Surgical and Unity Health have leased 339 sq m and 190 sq m, respectively, on five-year terms. Jake Eisen of Kelly & Kelly Property said rents in the building were about $270 per sq m.
MULGRAVE
Weber Business Accountants have moved from a building on Nepean Highway, in Frankston, and signed a seven-year lease for an office at 327-333 Police Road in Mulgrave. Knight Frank's Ryan O'Grady brokered the deal for an annual rental of $110,940 plus parking in the building owned by a Sydney-based fund of Calibre Capital. It was the first new lease in the building since a recent refurbishment with the rental equating to $260 per sq m. Car parking was an additional $80 per car space per calendar month.
Submissions to sjohanson@fairfaxmedia.com.au or cvedelago@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
Two industrial properties in Carrum Downs sold to investors: No. 3–5 Leah Grove sold for $1,363,000 and was reported to deliver a 9.5% return, while No. 7 sold for $703,500. Agents Alex Ham and Raoul Salter of Gross Waddell Real Estate handled the transactions.
Three buildings on a corner site in Preston (82 and 82A Albert Street and 30 Harrow Street) were sold before auction for $560,000 to one of the tenants. They are leased to a panel beater, an automotive repair workshop and a power tools sales business, producing a combined annual rental income of $42,300.
Colliers’ Winter 2013 National Auction Portfolio recorded $29.65 million of sales, including more than $9.2 million for eight Victorian properties. Highlights included $1.78 million for a two-level, 141 sq m retail building at 776 Glenferrie Road, Hawthorn (occupied by long‑term tenant Rhodes Hair Studio, sold on a 3.48% yield), plus Docklands sales: an Australia Post outlet at 839 Bourke Street for $902,000 and an adjacent dry cleaners premises for $545,000.
Singapore Airlines will move its Melbourne headquarters to 31 Queen Street, taking a 416 sq m space for five years in a recently upgraded building owned by Challenger Diversified Property Group (deal negotiated by Marc Mengoni of Colliers). Asset management consultancy Assetic has taken 660 sq m in 257 Collins Street on a four‑year lease (negotiated by CBRE and a Cushman & Wakefield sub-lessor).
Several suburban leases were reported: Avexa (biotech) took the top floor at 61–63 Camberwell Road, Hawthorn East — 300 sq m for five years at about $350 per sq m. At 79–83 High Street, Kew, three leases filled the building with reported rents around $270 per sq m. In Mulgrave, Weber Business Accountants signed a seven‑year lease at 327–333 Police Road with an annual rental of $110,940 (equating to about $260 per sq m) plus parking at $80 per car per month.
The article provides concrete metrics investors can use: sale prices, annual rental income and stated yields. Examples include a 9.5% return on the Carrum Downs sale, a 3.48% yield on the Hawthorn retail building, and a Preston purchase that produces $42,300 pa on a $560,000 purchase — an implied yield around 7.6%. Comparing price per sq m, rent per sq m and tenant quality (eg, long‑term tenants like Rhodes Hair Studio or national tenants like Australia Post) helps assess income stability and valuation.
The update names several agencies and brokers: Alex Ham and Raoul Salter (Gross Waddell Real Estate) for the Carrum Downs sales; Rory White (Gray Johnson) for Preston; Guy Naselli and Raff De Luise (ICR Property Group) for South Melbourne; Jeremy Gruzewski, Daniel Wolman and Matthew Stagg (Colliers) for the auction portfolio; Marc Mengoni (Colliers) for the Singapore Airlines deal; Adam Calleja and Mark Bolis (CBRE) and Gordon Wylie (Cushman & Wakefield) for Assetic; Jake Eisen (Kelly & Kelly Property) and Ryan O'Grady (Knight Frank) on various suburban leases.
Use the update to compare real examples of sale prices, rental incomes, yields and rents per sq m across suburbs and property types. Look for properties with stable, long‑term tenants (which can lower vacancy risk), check advertised yields and rent levels (eg, $270–$350 per sq m in the examples), and note auction results versus pre‑auction sales to gauge demand. These data points help form realistic expectations about income, yield and tenant risk when evaluating commercial investments.
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