Hammer Price

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John Nockles and Daniel Philip of CVA have just sold an office/warehouse in a tightly held commercial precinct in Melbourne's south-east for $710,000.
The auction attracted a mixture of owner occupiers and investors due to the exceptionally low supply of stock in the Notting Hill precinct.
Located on the north eastern-corner of Redwood Drive and Normanby Road, Notting Hill, the property is situated within close proximity to Monash University Campus, major arterial roads such as Ferntree Gully Road, Blackburn Road and is just 2 kilometres from the Monash Freeway.
After some competitive bidding from six bidders, the property was sold to a local investor, equating to a building rate of $1,972 per square metre.
The property comprises a solid brick office warehouse of 360 square metres constructed circa 1970s.
It is situated on a strata land holding of 2,666 square metres, which comprises two additional buildings, plus common area and car spaces.
The office area of 130 square metres includes partitioned and open plan offices, kitchenette and amenities with shower.
The clear span warehouse of 230 square metres features motorised container height roller shutter door and storage room. Additionally, the property provides an alarm system, three phase power and five on-site car spaces.
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1970s Notting Hill office/warehouse sold at auction

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A prime retail site at 20-26 Ferguson Street, Williamstown has sold for $7 million under the hammer.
The 738 square metre corner property comprised seven titles offered as a whole, sold under the hammer on a 3.85% net yield. It included five shops and two dwellings/offices across a total building area of 761 square metres with a combined return of around $290,000 per annum, and a 28 metre frontage to Ferguson Street, three street frontages and rear parking.
The nearby retail site at 5, 7 &amp; 9 Ferguson Street has also sold under the hammer for $4,225,000.
The three adjoining shops were offered in one line and sold for $300,000 above reserve, at a tight 3.4% yield.
Fitzroys also sold Shop 6, 73-83 Douglas Parade for $1.21 million under the hammer in recent weeks.
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Williamstown retail site sells at $7 million

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A Ritchies Supa IGA Supermarket in Taree sold recently to a Sydney eastern suburbs family for $7.82 million.
It reflected a 7% yield – possibly a record for a regional NSW supermarket, according to the Burgess Rawson selling agency.
It is leased to 2027 with options to 2047 guaranteed by ASX listed Metcash. With a building area of 3,126 square metres, it is adjacent to a council owned car park.
<a href="https://www.realcommercial.com.au/property-retail-nsw-taree-501490027" target="_blank">Its net income </a>is $545,939 per annum plus GST.
The same vendor secured $1.9 million for the adjacent Manning Street retail space rented to the Reject Shop.
It was a building area of 1,000 square metres with a net income of $145,880 per annum plus GST.
The two holding sold at $6 million in 2013 when JRDM Pty Ltd bought from Morgan &amp; Griffin Pty Ltd.
In 2013 fund manager Moss Capital, run by former Macquarie Bank director Bill Moss, acquired the Manning Mall in Taree from Mirvac for $32.6 million.
<a href="/expert-insights/investing/23586-ytc-monday-june-17-news-moss-capital-" target="_blank">The sub-regional shopping centre</a> in the Mid North Coast NSW town has 11,300 square metres of retail space, anchored by Target and Coles.
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jchancellor-FAypfDUnLy

Taree IGA sells at $7.82 million

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A Melbourne based developer has paid $2.5 million for a prime residential development site at Moonee Ponds in Melbourne’s inner north in a private sale brokered by Savills Australia. 
Located at 21-23 Norwood Crescent, the 841 square metre property is located in a Commercial 1 Zone within the Moonee Ponds Activity Centre, allowing a four level development. 
The property, combining neighbouring residential sites, sold on the very strong rate of $2,973 a square metre for the land through selling agents, Savills’ Julian Heatherich and Jesse Radisich.
Heatherich said the sale was another example of adjoining homeowners successfully combining to create a larger development site and significantly increasing the value of each property.  
"Home owners are increasingly jumping on board this trend towards joining forces to produce fantastic results which individually they would not have been able to achieve,’’ he said.
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Adjoining home owners secure Moonee Ponds development site sale through Savills

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A group of seven petrol stations were on offer at today's Burgess Rawson investment portfolio auction.
Crown Casino's River Room filled with investors keen to snap up a petrol station or one of the 13 other commercial properties on offer.
The first petrol station to go under the hammer with auctioneer David Scholes was a Woolworths Caltex in the Western Australian town of Katanning.
A rather optimistic first bid was put in at $400,000, which was quite firmly rejected by Scholes.
"You have to start somewhere," mumbled the embarrassed under bidder.
The more realistic starting bid was placed at $900,000, and a group of competing bidders from Melbourne, Sydney and Western Australia brought the price to $1.03 million, often at a pace of $5,000 per bid.
The Katanning petrol station at <a href="https://www.realcommercial.com.au/property-offices-wa-katanning-501493547" target="_blank">137-139 Clive Street</a> (pictured above), which brings in $56,818 per annum, was sold on a 5.52% yield. Woolworths have recently signed a 15 year lease.
The next petrol station up for auction was also leased by Woolworths Caltex. Located at<a href="https://www.commercialview.com.au/565-581-sydney-road-coburg-vic/commercial-for-sale-details-8514182" target="_blank"> 565-581 Sydney Road in Victoria's Coburg</a>, the site brings in $253,758 per year, with Scholes noting that more than 32,000 vehicles pass by the service station daily.
Woolworths signed a 15 year lease for the site in 2012. The 1,858 square metre property, Scholes noted, is nearly opposite the former Pentridge Prison, where an apartment development is being planned.
Bidding officially began at $3.8 million after a rejected $2.75 million starting bid, before stalling at $4.15 million. After some consultation, a vendor bid was placed at $4.5 million, which was matched by a bidder. The Coburg petrol station was secured at a 5.64% yield.
Next on the auction block was a Coles Express petrol station in Queensland's Ayr. Located about 85 kilometres south of Townsville, the Coles Express at <a href="https://www.burgessrawson.com.au/3P0992#.VS3sfIWM54s" target="_blank">140-132 Edwards Street</a> (Bruce Highway) on a corner site, the 2,015 square metre property came with development approval for a fast food outlet.
Coles Express pay $288,400 net per annum in rent, with fixed 3% annual rental increases.
Scholes suggested that bidders from Brisbane, Sydney and Melbourne begin at $4 million, and a small group of bidders slowly pushed the price upwards past $5 million. After a tight bidding volley between a Sydney and Melbourne bidder, the winning $5.1 million bid from a Sydney investor saw the Melbourne hopeful walk out of the room.
The Coles Express sold at a 5.65% yield.
The vendors of the next Queensland petrol station to be auctioned weren't quite so lucky.
The Shell SPAR Express in Bundaberg, at <a href="https://www.burgessrawson.com.au/4P0146#.VS3uPIWM54s" target="_blank">15 Scotland Street</a>, was passed in after subdued interest from the crowd.
The corner petrol station site, which includes a 378 square metre SPAR convenience supermarket, brings in $337,459 per annum in rent. The tenant has signed a 20 year lease to 2032, with a fixed rental increase of 4% per year.
While Scholes attempted to entice bidders to enter the race at $4.5 million, the first bid was placed at $4 million. After just a handful of bids, the bidding stalled around $4.5 million. It was passed in at $4,525,000.
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Mixed result for petrol station sales at portfolio auction

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A crowd of more than 150 people were drawn to Melbourne CBD’s when local and offshore bidders competed for a Chinatown retail property.
With a $4 million opening bid, it was sold to a local investor for $5.01 million on a tight 3.87% yield through Clinton Baxter and Nick Peden of Savills.
The 30 minute auction saw 95 registered bids after more than 220 pre-auction enquiries. 
The 166 Russell Street property sold well in excess of price expectations. The vendors, Lai Meng Wong, Mui Chun Cheew and Kok Leong Lee, through Australiawide Melbourne Pty Ltd paid $1,927,000 in mid-2008. It sold at $237,500 in 1986. 
Located on a 136 square metre site, the four level, 295 square metre, retail building was sold with a five year lease to long standing tenant, Cats Hair and Beauty, at a net annual rental of $194,182. 
Clint Baxter said the tight yield set a new benchmark for CBD retail properties.
Investors were now fully prepared to accept below 4% yields for prime retail assets, he said.
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Savills Melbourne Chinatown retail auction affirms sub 4% yields

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An undisclosed Melbourne antique dealer has purchased a 338 square metres showroom at 135 Burwood Road in Hawthorn for $1,619,000.
The deal was negotiated by Gray Johnson agent Rory White right on Christmas Eve.
The building a clear span showroom with a concrete floor has an eight metre frontage to Burwood Road and was previously occupied by bedding retailer Regal Mattress. 
The vacant possession building had been leased as a showroom at an annual rate of $76,000 plus GST and building outgoings.
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Antique dealer buys Hawthorn retail space on Christmas Eve

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EG Funds Management has spent $20 million on a three-storey office building in the inner-Sydney suburb of Pyrmont.
It was sold by Aveo through Paul Fernandes of Colliers International. 
EG Fund's purchase for its Core Fund was on an initial yield of around 10 per cent.
<a href="https://www.realcommercial.com.au/property-offices-nsw-pyrmont-501091883" target="_blank">The 63 Miller Street property</a> is known as the former Festival Records building, the pale face brick, Interwar Functionalist style facaded building.
It has rounded corners, asymmetry, long spandrels, parapet and metal framed windows - the hallmarks of the late 1930s Functionalist style. 
It was initially known as Wakefield House, built in 1939 by A.W. Edwards and its architects were Crane &amp; Scott.
The former Festival Records building served as a recording studio for artists such as Midnight Oil, Cold Chisel, Silverchair and Peter Allen who recorded I Still Call Australia at the recording studio.
The Sydney city fringe investment was offered earlier this year as 75% leased to the advertising agency.
In 2006 BMF Advertising leased 2,500 square metres for six years at $440 per square metre.
There was some <a href="https://www.mmj.com.au/buying/NSW/Sydney-City/Pyrmont/Office/2P1551" target="_blank">1,250 square metres of refurbished vacant space</a>. 
The offering's passing net income was given as $1.7 million.
In 2003 Sydney's then Lord Mayor, Lucy Turnbull, stepped in to stop Australia's unofficial rock'n'roll headquarters being torn down and replaced with apartments.
It's future looked like demolition after News Ltd, owner of Festival Records, sold to the Glish Holdings development consortium headed by Mike Wrublewski who wanted build a six-storey block of apartments.
Rupert Murdoch's Mirror Newspapers bought Festival Records in 1960.
Glish Holdings had paid $9.5 million. It last sold at $11.9 million in 2005.
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EG Funds Management spend $20 million on Festival Records, Pyrmont office block

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A retail/office building at Cheltenham in Melbourne’s south-east has been sold by Ray White Commercial for $559,000.
The property at<a href="https://www.raywhite.com/vic/cheltenham/1182311/" target="_blank"> 6/1291 Nepean Highway</a> sold to a local investor.
It last sold in 2009 at $442,000.
The 170 square metre building is now available for lease with showroom/retail of 80 square metres.
It is advertised at $29,500 a year, plus get and outgoings.
It was currently returning $28,000 per annum net with the tenant vacating the premises in mid-December 2014.
It was sold by Ray White Commercial Oakleigh agent George Kelepouris.
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Cheltenham showroom for lease after $599,000 sale

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The retail and office space at 3/146-152 Cleveland St, Chippendale was the cheapest sale of the weekend.
It fetched $160,000 through Richardson &amp; Wrench Surry Hills having been listed with $150,000 plus hopes.
Its size was 21 square metres.
The retail/office benefited from main street exposure but also had internal landscaped courtyard entrance.
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