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Developers’ splurge $1b on residential sites

Residential developers were the most active, spending $572 million on new sites, while social infrastructure and aged care groups accounted for $167 million. The growing build-to-rent sector spent $127 million on new sites.

“Large-scale infill townhouse opportunities remain highly sought after and are proving to be scarce in nature,” Mr Burgess said. “Demand for projects in Melbourne’s middle ring is high as established housing prices soar and current projects have been absorbed by the market.”

Chinese church

It’s been a big month for church sales. The Chinese Church of Christ on Carlton’s city fringe has sold after 100 years of worship. The church at 148-150 Queensberry Street fetched $4.2 million.

Savills agents Clinton Baxter and Julian Heatherich handled the sale of the 362 sq m property which no longer provided “a suitable standard of accommodation.”

Its vendor was the Australian Churches of Christ Global Mission Partners.

The church is planning to redeploy the funds into its community support programs.

“This property attracted a huge level of interest from the market by virtue of its spectacular position on the cusp of the Melbourne CBD,” Mr Baxter said.

Carlton offices

There are two other, not quite so long-held, offices up for grabs in Carlton. Financial services organisation the Cursio Group is selling its office at 158 Rathdowne Street after 16 years of ownership.

And 135-139 Leicester Street, close to the University of Melbourne, is up for sale after 32 years.

158 Rathdowne Street, Carlton is set for auction on September 8.

158 Rathdowne Street, Carlton is set for auction on September 8.Credit:

CBRE agents Nathan Mufale, Scott Hawthorne, David Minty, Alex Brierly and JJ Heng are handling the campaigns.

The Leicester Street property is on 296 sq m and is expected to sell for more than $5.5 million.

It’s across the road from the Oxfam head office which was acquired last year by student accommodation provider Scape for around $15 million. That was on a larger 975 sq m site.

Further north in the Rathdowne Village precinct, the Cursio Group has listed its digs for sale after outgrowing the 300 sq m building.

The 158 Rathdowne Street is on the corner of Pitt Street and is set for auction on September 8. It is likely to sell for more than $2 million.

Eye catching

Surveillance systems developer AVT Australia has signed up for a standalone office building on the city fringe.

CACI International took a four-year lease at 141 Capel Street.

CACI International took a four-year lease at 141 Capel Street.Credit:

AVT Australia, acquired 12 months ago by New York Stock Exchange-listed CACI International, has leased 141 Capel Street, North Melbourne.

The four-year deal was negotiated by Fitzroys agent Stephen Land at a face rent of $701,040 a year.

The three-level building has 1582 sq m of space and a ground floor car park with 25 spaces.

“As a result of its growth and the acquisition, the company sought to expand their office footprint substantially,” Mr Land said.

The company already occupies space in a smaller building on Capel Street which they will retain.

“The building offered prospective tenants a chance to relocate from the CBD with the option of a whole self-contained building – they have become more sought-after during COVID given the greater health and logistical issues,” he said.

Guildford Lane

In the CBD’s backstreets, two mortgagee sales in Guildford Lane have transacted.

29 Guildford Lane, Melbourne has sold for $5.705 million to an owner-occupier.

29 Guildford Lane, Melbourne has sold for $5.705 million to an owner-occupier.Credit:

No.31, sold after its owner, developer Paglia Properties went bust, was bought by joint mortgage holder, Magnolia Capital for $4.6 million

Magnolia Capital boss Mitchell Atkins told Capital Gain he offered $200,000 more than the highest offer in the public campaign to secure the deal.

Colliers International was the agent who drummed up the original shortlist.

More recently, its neighbour at No.29 sold for $5.705 million to an owner-occupier in the recruitment industry.

Gray Johnson agents Rory White and Matt Hoath handled the deal which attracted six offers.

The 385 sq m property is on a 107 sq m pocket of land. It had been converted into a home with a rooftop terrace but will return to commercial use.

Spiritgrow

A local investor has snapped up a North Caulfield office building for $5.25 million at a spirited online auction.

The sale of 206 Balaclava Road was handled by Colliers agents Danial Wolman, Ben Baines and Ted Dwyer with JLL’s Josh Rutman, Tim Carr and Mingxuan Li who reported 75 attendees and eight registered bidders.

The vendor, the Spiritgrow Josef Kryss Centre was represented by Advise Transact’s Mark Wizel.

The two-level 762 sq m freehold building is on 552 sq m of Commercial 1 Zone land. The deal represented a building rate of $6,890 a sq m and a land rate of $9,511 a sq m.

BBQ goes off

The Barbeques Galore shop at the Fountain Gate Supercentre has sold for a smoking $4.6 million, reflecting a yield of 4.8 per cent.

The retailer has a three-year lease on the store which is across the road from the Fountain Gate shopping centre.

CBRE agents Scott Hawthorne, Nathan Mufale and JJ Heng handled the sale of 26-28 Victor Crescent, Narre Warren.

The homemaker centre was developed by the Genser family in the late 1990s. The large-format centres are enjoying renewed investor enthusiasm.

Barbeques are also selling well during lockdown. Quadrant, the retailer’s private equity owner, is also trying to sell the 88-store chain.

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