Malaysian investor buys Torquay Village shopping centre
Commercial property investors are seeking out defensive bricks-and-mortar assets, with Coles-anchored shopping centre Torquay Village, on the Surf Coast, selling off-market for an undisclosed sum.
Fitzroys director Paul Burns negotiated the sale on behalf of vendor IP Generation. The purchaser is a private Malaysian investor with various property holdings in Australia.
The fully leased Torquay Village is located in the retail precinct and consists of 4056 square metres on a 14,030 sq m site. It is also home to 14 speciality, non-discretionary income tenants. It has a long-weighted average lease expiry of 7.6 years by income, and 8.19 years by area.
“Amid a broader market slowdown and gap between expectations of sellers and buyers, neighbourhood shopping centres are trading strongly on healthy yields on the rare occasion that they come up for sale,” Burns said.
“Investors are seeking surety, so are turning to assets with essential-services tenants that have proven resilience,” Burns said.
The Surf Coast is the seventh-fastest growing LGA in Australia, according to the 2021 Census. The recently adopted Torquay-Jan Juc Retail and Employment Land Strategy forecasts its 22,000 population will surge by a further 12,000-plus residents by 2036.
Dexus offloads land
Dexus Property Group has sold 30,170 sq m of premium industrial land at its Trugania industrial estate, in Melbourne’s west, for $25.3 million.
Located at 20 Distribution Drive, the two lots neighbour national tenants, including Coles, CUB, Toll and Secon Logistics.
Building materials company Mapei purchased one 19,940 sq m lot and aluminum manufacturer Protector Aluminum purchased a 10,230 sq m land parcel.
CBRE’s Tom Murphy, Harry Kalaitzis and Fergus Pragnell brokered the deals.
“In uncertain economic conditions, many industrial businesses are performing strongly,” Murphy said. Mapei and Protector are examples of owner-occupiers whose trade is supporting the need to upsize their facilities. “The sale prices set a benchmark of $840 per sq m for the respective land parcels, which is a great result for the industrial market, given current economic conditions”.
Toorak shop sells on 1.8 per cent yield
A Toorak shop has smashed expectations by selling under the hammer on an ultra-low 1.8 per cent yield.
Fitzroys’ Mark Talbot and Lewis Waddell sold 416 Toorak Road for $2.7 million on behalf of a private investor who had owned the property since 1985.
Four bidders competed for the site, taking the sale price $500,000 above its reserve. The purchaser is a local investor who intends to hold the property as a passive investment.
The open-plan shop, home to boutique Euro Collections, is 196 sq m of land with a 5.9 metre frontage to Toorak Road. It has a three-year lease, plus options to 2028.
“This was a demonstration from the market that income-producing bricks-and-mortar assets along Melbourne’s shopping strips are considered safe investments,” Talbot said.
“Multiple interest rate rises haven’t deterred cashed-up investors from pursuing high-quality opportunities, and buyers are willing to pay a premium in established areas where they can see high-disposable income and strong demographics.”
Industrial demand
Owner-occupiers have snapped up two vacant landholdings in Melbourne’s northern industrial market for more than $5.2 million.
Colliers handled the sale of 205-207 Northbourne Road, Campbellfield, and 34 Yellowbox Drive, Craigieburn.
Colliers’ Mitch Purcell said despite 2022 reflecting a record year of land take up, there remains an undersupply of serviced lots in the core northern market. “The fundamentals of industrial remain strong, with low vacancy and record market rates being achieved,” he said.
Geelong retail
A prime retail property at 79-81 Malop Street, Geelong, has sold at auction to a Melbourne investor for $2.52 million.
The 320 sq m site was purchased with vacant possession and sits on 498 sq m of Activity Centre Zoned land, presenting an opportunity for future development under the Geelong Framework Plan.
Colliers’ Ben Young and Chris Nanni negotiated the sale, with Fitzroys’ Chris Kombi and Lewis Waddell.
LEASES
Chinatown
A three-level freehold building at 18 Heffernan Lane, in the heart of the Melbourne CBD’s Chinatown, has been leased for $250,000 a year on a building rate of $325 per square metre.
The CVA campaign attracted three offers requesting long-term commitments.
Only two accessible levels of 570 sq m in the building are being utilised; however, the new tenant intends to capitalise the entire 770 sq m site.
Mildura expansion
Camberwell College is expanding into regional Victoria after leasing space in a new development at 840 Fifteenth Street, Mildura.
College campus manager Annie Kwon said the education provider has been operating in Melbourne for five years and chose Mildura because it is one of the fastest-growing regions in the country.
The college teaches general English courses as well as IELTS preparation courses.
“The fit-out has been completed with the college now open for business,” Kwon said.
Burgess Rawson’s Wendy Thomson, who negotiated the lease, said the deal follows the Victorian Academy of Teaching and Leadership also opening of a regional training centre in Mildura. “Mildura is attracting a number of education tenants who are lured to the region due to its proximity to a range of industries,” she said.
