- Extensively refurbished office listed
- Expression of interest called for two land lots in northern industrial precinct
- Mixed use development to revive Flinders and Swanston street intersection
The latest round of Melbourne’s real estate transactions include a couple of refurbished offices in major metropolitan areas, a neighbourhood retail shopping centre sitting on a vast land holding, a mixed-use development to rejuvenate one of Melbourne’s most iconic intersections, and much more.
Books and mortar back in business
Readings has signed a ten year lease at the heritage ANZ bank building plus an adjoining shop at 685-687 Glenferrie Road in Hawthorn at $320,000 per annum.
Negotiated by Fitzroys Division Director – Agency, Chris James, the property comprises 345 square metres across the ground floors of the circa-1920 Edwardian ANZ bank building and adjoining shop, and 124 square metres on the first floor of the ANZ building, on a high-profile 944 square metre site next to the Lido Cinemas complex that has become a landmark for the prime of the strip.
The lease is more good news for Melbourne’s shopping strips. According to Fitzroys’ new Walk The Strip report, vacancies have returned to pre-COVID levels along Glenferrie Road, Hawthorn, falling from 12.9% in 2021 to 7.9% in 2022 as the return of Swinburne University students and the fast-growing Hawthorn office market centred around Burwood Road helped drive an increase in tenancy take-up. The decrease in vacancies was consistent with the Melbourne-wide trend as vacancies hit a long-term low.
Refurbished Melbourne office in inner-east listed
With the sale of 1601 Malvern Road, Glen Iris, Melbourne’s inner metropolitan office sector is set to undergo its latest test.
The extensively refurbished building offers 3,700 square metres of office space over three levels and is situated on a Commercial 1 zoned corner site of 2,700 square metres.
CBRE Capital Markets Office team member Tom Ryan says the recent lease expiry of a major tenant has provided a great opportunity for the building to be smartly repositioned to a high standard, which will appeal to tenants looking for high quality office offerings.
“Not only is the property in one of the most dependable and popular office markets in Melbourne’s inner-east, but all the hard work has been done and expense already incurred in an environment of cost uncertainty and price escalations,” he added.
Exclusive retail shopping centre offering in Reservoir, Vic
Cushman & Wakefield’s Melbco Retail & Development Sites, in collaboration with LAWD, have announced an exclusive offering, 830 Plenty Road, Reservoir, Victoria.
The neighbourhood retail shopping centre, sitting on a vast land holding of over 1.03 hectares, presents an asset management or redevelopment opportunity for developers, investors, and property companies.
LAWD Director Lukas Byrns says the property features a boutique supermarket as its anchor, complemented by 17 specialty stores.
“Potential buyers are encouraged to view the property through a creative lens, considering opportunities for repositioning or complete redevelopment,” he added.
Former Woodpackers Hostel and Barleycorn Hotel in Collingwood listed
The former Woodpackers Hostel and Barleycorn Hotel in Collingwood have been listed for sale.
CBRE Hotel’s Scott Callow is managing the sale via an Expression of Interest campaign closing on 25 May, 2023.
“The facility is being sold on an as-is basis with nearly new bunk beds and mattresses and well-fitted kitchens offering the opportunity to re-establish a successful operation,” Callow said.
“The tourism market in Australia has seen a rebound in demand for backpacker and budget accommodation and with the number of these facilities having reduced in Melbourne, this is an ideal opportunity to recommence a business in a strong market.”
Land acquisition opportunity at O’Herns Logistics Park
Sandhurst Retail & Logistics (SRL) is calling for expressions of interest in two land lots located in Melbourne’s northern industrial precinct.
Predicted to be one of the largest land releases in Australia this year, the 43,352 square metre (Lot 104) and 21,815 square metre (Lot 105) parcels are the first to be listed for sale within SRL’s 140-hectare O’Herns Logistics Park at Epping.
SRL’s Managing Director and Chief Executive Officer Vivek Subramanian said that O’Herns Logistics Park supported SRL’s vision to facilitate ongoing value and opportunities in growth areas.
“The park will provide much-needed development relief in a highly stressed market, enabling businesses to expand and grow.”
Lendlease gets the greenlight for Town Hall Place development
Lendlease has revealed plans for its new mixed-use development that is set to reinvigorate Melbourne’s landmark intersection at Flinders and Swanston streets, following endorsement of its development plans.
The development will feature a modern A-grade, 10-storey commercial building with approximately 16,000 square metres of floor space, with new laneways, arcades and retail at ground level.
Lendlease Managing Director of Development at Lendlease Tom Mackellar says, “Town Hall Place is a rare opportunity to reinvigorate this iconic part of Melbourne’s CBD with new laneways and arcades, retail and dining and a next generation workplace that will contribute to the vibrant culture of this renowned area.”
“The transformation of this site will showcase how smart over-station development can unlock the potential of our cities by linking key transport interchanges with exceptional retail, workplace, and lifestyle experiences.”
Well Health Care claims refurbished aged care facility
Well Health Care (WHC) has committed to a newly refurbished Springvale South facility.
The 472-476 Springvale Road facility has been leased at an initial rental of circa $350,000 per annum, representing around $8,400 per bed.
CBRE’s Australian Healthcare & Social Infrastructure team member, Jimmy Tat, said the site had appealed to a wide variety of operators given the area’s favourable demographics and the lack of affordable, senior living accommodation.
“As construction costs and land prices continue to increase due to economic constraints, tenants are seeing added value in opportunities where existing facilities are available for immediate use,” he said.
Government leased riverfront office listed
A government-occupied office building in Footscray has been listed for sale, representing a rare leased investment opportunity in Melbourne’s metropolitan office market.
CBRE Capital Markets Office team member Scott Orchard says this is a compelling investment opportunity following a recent five year lease renewal, which provides a stabilised income security akin to a government bond.
“With no further lease option there is also significant rent reversion as well as future development potential, given the building occupies an underutilised Activity Centre Zone site just 4km from the Melbourne CBD.”
Significant landholding in affluent precinct brought to market
A substantial 8,475 square metre landholding with dual street frontages is exclusively listed by Colliers Ian Sanders, Hamish Burgess and Justin Hazell on behalf of Uniting AgeWell, with price expectations of nearly $28 million.
Located in the Studley Park precinct at 18 Barry Street, Kew, A’Beckett Corner is positioned to provide exceptional views across Yarra Bend Park and Studley Park towards the Melbourne CBD skyline.
Burgess said, “A development proposition of this stature, within one of Melbourne’s most coveted residential locations, is rarely offered to the market.”
“Its corner location, potential for stunning view lines, proximity to Kew Junction shopping village, and unique scale provides the perfect foundation for a market defining project.”
Oreana Property stakes Wyndham Vale land for $13.8 million
A parcel of land in Melbourne’s western corridor suburb of Wyndham Vale has been purchased by Oreana Property Group for $13.8 million.
Fitzroys’ Brent Glassford says Oreana Property’s acquisition will bring much-needed housing supply to Melbourne’s western growth corridor.
“The market showed all the more confidence in the site given it is surrounded by developments by major developers,” he said.
“Material costs, labour shortages and barriers to funding have made construction of some projects more difficult but the pending major boost to demand for housing makes this growth corridor site an attractive proposition.”
Multiplex Completes $2 billion West Side Place
Global construction company Multiplex has reached completion of Stage Two of Far East Consortium’s $2 billion West Side Place in Melbourne’s CBD.
Located at 651-669 Lonsdale Street, West Side Place spans an entire city block, bound by Spencer Street, Little Lonsdale Street and Lonsdale Street.
Regional Managing Director of Multiplex Ross Snowball says, “West Side Place is arguable one of the most significant and complex developments undertaken in Melbourne’s CBD in many years.”
“It has already breathed new life into this part of the city, and will no doubt be a catalyst for further development within the western CBD.”
Armadale High Street store sold for $1.7M
The strata-titled 1272 High Street property has sold for $1.715 million, on a 4.3% yield.
Private local investors traded the property, which comprises a 165 square metre building leased to highly regarded and longstanding Armadale beauty clinic Shaèp.
According to Fitzroys’ latest Walk the Strip report, High Street saw vacancies come down from 9.1% to 5.1% year-on-year. Specialty retail has been a major driver of leasing activity with its affluent, established catchment supporting the biggest proportion of discretionary retail of any shopping strip.
Box Hill medical building listed
A property located at 528 Station Street has come to market for the first time in almost five decades.
The property is a purpose-built medical building that was occupied by Box Hill Medical Centre, and the 836 square metre commercial one zoned landholding includes 14 car parks on title, an 18.5 metre street frontage on Station Street, and a permit for five medical practitioners.
The property is being brought to market by Cushman & Wakefield‘s Leon Ma, Jeff Ha, and Karim Ford.
