Abbotsford

A multi-tenanted three-level corner building close to Victoria Gardens shopping centre has sold privately for $4.2 million. The office, with ground-level showroom at 585-587 Victoria Street was fully leased, returning net income of $248,000. The sale price reflects a passing yield of 5.9 per cent, which really confirms the strength of the sub-$5 million commercial property market, Morley Commercial's James Lie said.

Port Melbourne

An owner-occupier outbid rivals to pay $1.926 million for a double fronted shop at 383-387 Bay Street. The double-storey period brick building has two ground-floor shops and an office and apartment above. It sold with a permit for apartments, which made it attractive both from an investment and development perspective, Teska Carson's Matthew Feld and Michael Ludski said.

CBD
A three-level office and ground-floor restaurant at 51-53 A'Beckett Street has sold on a yield of 4.8 per cent for $4.6 million at auction. A 100-strong crowd watched five bidders make 20 bids before the property was knocked down, Colliers International's Daniel Wolmanand Oliver Hay said. The building provided a net passing income of $221,200 a year plus GST and outgoings.

CBD

Fierce bidding from five buyers has resulted in a Thai restaurant at 195 Lonsdale Street selling to an offshore fund on a very tight 2.9 per cent yield. The double-storey shop, leased to the restaurant for $99,025 per annum net, sold for $600,000 over the reserve when it changed hands for $3.4 million, Teska Carson's George Takis and Larry Takis said. There is a "real hunger for quality CBD investment property with an enormous amount of pre-auction enquiry from local, interstate and overseas interests", George Takis said.

Collingwood

Investors chasing potential redevelopment sites are continuing to bid up values in city fringe sites, according to JLL's Lincoln Reynolds and Christine Tian. The pair sold 22 Singleton Street for $4.4 million at auction to an owner-occupier after interest from developers and land bankers with a long-term view to capitalise on a potential rezoning to mixed use. A 50-strong crowd watched four bidders push the opening bid of $3.7 million up to $4.4 million. The two-level office warehouse had three street frontages on 1117 square metres  of Commercial 2 land.

Abbotsford

Ian Price of Dixon Kestles has sold a warehouse and showroom at 34 Church Street on the corner of Church and Nelson streets in an off-market deal for $2.08 million. The property was snapped up by a well-known and prominent developer, who will redevelop the site and put it back on the market.

LEASES

Glen Waverley

Two recruitment firms have signed new leases at 40 Montclair Avenue. Matchworks, which is expanding within the building, has taken two suites on separate leases paying a combined  net annual rental of $141,750.  The rents equate to $350 a square metre. As well, SYC has leased 210 square metres at Suite 17 on a 5+5-year lease term at an net annual rental of $72,450, which equates to $345 a square metre, Knight Frank's James Treloar and Tristan Payne brokered the deals in conjunction with Eastpoint Property Consultants.

Collingwood

Three office suites at 23-25 Gipps Street have been leased and two have sold to private investors. Something Beginning With has leased 77 square metres, AGS signed up for 71 square metres and Tribal Sports Group took a 164-square-metre office.  Knight Frank's Matthew Romanin and Square Metre's David Gill brokered the deals. Mr Romanin also sold two suites, one for $400,000 reflecting a yield of 7 per cent and another for $390,000, on a yield of 6.6 per cent.

South Yarra

Concentrix Services has leased the ground floor of 14-16 Yarra Street. The firm will relocate from 60 City Road at Southgate after identifying a need for bigger premises, Colliers International's  Ash Dean said. The existing fit out and proximity to public transport were major attractions in the move, which achieved $300 a square metre rent, he said.

MOVERS

Colliers International has boosted its Melbourne East team, appointing Andrew Chrapot  an industrial executive based in Clayton. Mr Chrapot joins Colliers from Kelemen Commercial.

JLL has appointed Mitchell Humphreys as a director and head of retail agency leasing in Victoria.  Mr Humphreys has worked in JLL's hotels and pubs team since 2014.

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