- World Champion Pizzeria leased property sold for $1.6M
- Industrial facility in Tottenham Industrial Park 75% leased prior to practical completion
- 40 hectares of land hits the market in Craigieburn
The latest in Victorian commercial includes the $1.6 million sale of a retail property leased to a world pizza champion, an over $84 million industrial development, several major leases across tightly-held industrial zones, and a unique and heritage leasehold which was previously overseen by the Department of Defence.
Former defence building leasehold offered as a blank canvas
Known as Jack’s Magazine and located between Flemington Racecourse and Highpoint Shopping Centre, most of the 12.2-hectare site’s buildings were constructed between 1875 and 1878.
Home to bluestone and brick buildings, tramways, tunnels, and earth blast mounds, parts of the property were used for gunpowder magazines and ammunition storage.
According to Fitzroys, the property was overseen by the Department of Defence and decommissioned in 1993, when it was handed over to the State Government.
The property Is just 5.2 kilometres from the Melbourne CBD, and the leasehold is for a circa-1875 865 square metre small arms ammunition store and the 1921 112 square metre loading dock shed. The lease terms of up to 21 years are preferred, but up to 65 years are available with Ministerial approval.
Managing the registrations of interest campaign are Fitzroys’ James Lockwood and Franklin Gikas.
“We’re coming into this with a pretty open mind,” said Lockwood said.
“We’re looking for operators that can embrace the heritage character of the surrounds and deliver something that creates a real buzz, and bring in visitors from across Melbourne and beyond.”
Lockwood noted opportunities span hospitality, through to retail, education, tourism, and more.
“That could be anything from Melbourne’s next humming brewery or distillery to a function centre or creative workshop.”
Working Heritage is the Victorian government body responsible for securing community and commercial usage of heritage properties on Crown Land and was appointed Committee of Management for Jack’s Magazine in 2015.
The government body’s vision for the site is that, “Jack’s Magazine will be a vibrant place of diverse activity that is used and valued by a broad range of people, communities and groups. Its unique character will be protected and enhanced by any change and developments. Its history will be understood, conserved and celebrated. It will be financially, environmentally and socially sustainable.”
Ivanhoe Village shop sold for $1.63M
Located at 219 Upper Heidelberg Road, this property is a freehold of 152 square metres and enjoys direct access to a large council car park at the rear.
Leased to Andrea Cozzolino and his Little Naples Pizzeria, Cozzolino has been twice voted World Pizza Champion.
Cozzolino moved to Melbourne in 2012 and took home the first World Pizza Champion title in 2016; he took home the title again in 2017 in the gluten-free category.
Fitzroy’s Chris Kombi and Chris James sold the property, with Kombi noting there was a strong appetite for excellent investment opportunities despite the interest rate hikes. The Upper Heidelberg Road property saw 80 enquiries and a bidding war between four on auction day.
James also noted shopping habits have gradually changed over the pandemic:
“Melburnians have reacquainted themselves with their iconic local villages over the past few years. Upper Heidelberg Road is no exception, experiencing high levels of foot traffic and is supported by an affluent and established catchment.”
According to Fitzorys’ data, vacancies along the shopping strip were 4.7% in 2022.
40ha of Craigieburn land hits the market
An amalgamated land holding towards Melbourne’s north has come to market, offering 40.85 hectares of gross land with 31 hectares of net developable area.
The property is located close to Hume Freeway, within the Craigieburn North Employment Area Precinct Structure Plan, and is the result of Cadence Property Group partnering with adjoining landowner Linkage Property to bring the over $84 million industrial englobo land offering to market, with CBRE and Savills appointed as agents.
It is being presented as a prime opportunity given some of the tough conditions, not least the tightly held market.
Industrial vacancy rates for Melbourne are at record lows, with CBRE’s Q1 2023 industrial research finding the overall rate to be 1.1% and the north at 0.5%.
National Tiles commits to 20,000sqm
In the latest leasing news from Frasers Property Industrial, tile and flooring company National Tiles has signed two ten-year leases, including a 17,500 square metre facility at Vantage Yatala, and a 20,710 square metre facility at Canvas West in Tarneit.
The latter is located in Melbourne, including a 1,300 square metre customer pick-up and trade centre, and a 425 square metre double-storey office.
“Melbourne’s west is one of the city’s burgeoning growth corridors and Canvas West is primely located to provide enterprises in the region with a base to access a captive audience and linkages to distribute to the broader region,” said Andrew Hanna, General Manager – Victoria for Frasers Property Industrial.
“The new facilities at Vantage Yatala and Canvas West will provide us with the space and opportunity to transform how we operate and ultimately, better serve our customers. We are looking forward to the completion of these facilities and welcoming customers through our doors,” said Mark Chapman, Chief Operating Officer, Supply Chain and IT, for National Tiles.
Frasers said construction on the properties has commenced, with the Tarneit facility expected to reach practical completion in late 2023.
Centennial leases at Tottenham Industrial Park
The company’s warehouse redevelopment is coming to fruition as major leases have been signed just prior to the completion of the first stage.
Centennial acquired the 10.37 hectare site in late 2018 for $22 million, with the first stage, a 19,601 square metre GLA warehouse, nearing completion; the second stage is due for completion in Q2 2024.
About half of Stage 1 (10,890 square metres) has been leased to Cleanaway for 11 years; the lease was brokered by CBRE’s Josh Deluca.
According to Deluca, the Cleanaway lease, “follows its appointment under the Victorian Government’s Container Deposit Scheme, enabling it to commence the internal design and fit-out of its new warehouse that will house specialised recycling equipment.”
“Cleanaway expects to be fully operational by October 2023 with its long-term lease also including a further 420 sqm of commercial grade office space,” Deluca added.
The second lease is for 4,416 square metres by Florsheim Shoe company, making the occupancy rate 75% prior to practical completion; the deal is for 5 years.
