Victoria’s famous Golden Triangle might already be etched in history but the sale of three premium commercial properties, which are set to go to auction this month, will be an opportunity for investors to strike gold in the future.
The properties include a two-level commercial complex on Pall Mall in Bendigo, a Centrelink Government building in Echuca and a fully occupied Medical Centre in Shepparton.
According to Burgess Rawson Director, Raoul Holderhead, regional property in Victoria is favored among commercial real estate investors due to strong growth in key regions such as the state’s north- west.
“Victoria’s Golden Triangle region is one of the fastest growing regional hubs in the state and this is expected to increase further in coming years. Bendigo for example has a population that is set to increase to 145,000 by 2031,” Mr Holderhead said.
“Commercial property in these regional areas is becoming increasing popular with investors who are attracted to robust yields, strong lease terms and quality tenants.”
Mr Holderhead said the standout was the two-level retail complex in Bendigo which has undergone a $3.5 million redevelopment.
“This property is in a prime location on Pall Mall and is securely leased to three tenants including Zambrero, a Government-backed Not For Profit organisation and a beauty salon. Redeveloped in 2016, it has a significant 20m street frontage as well as 13 secure car parks,” Mr Holderhead said.
“Combined rent for the property is $407,561 pa with tenants paying all outgoings. We expect this property to be a strong performer come auction day in a few weeks.”
The other two Golden Triangle properties include a 1,095 sqm Medical Centre located 92-96 Maude Street, Shepparton, which is fully occupied with leases in place until 2022. The property has an annual rent of $405,810 with a fixed 3% annual rent increase.
Located in Heygarth St, Echuca, the third property is a 1,621 sqm modern Centrelink and Medicare facility secured by the Federal Government on a renewed six-year lease to 2022.
The property has 21 on-site car parks and provided net rent of $282,205 pa All three properties will go to auction on Wednesday, 13 December at Burgess Rawson’s final flagship auction of the year to be held at Melbourne’s Crown Casino.
A substantial and versatile site in booming Cranbourne has attracted strong interest from a broad market of investors, owner occupiers and developers before selling for $3.35 million.
The 1,834sqm site at 132-132A High Street is in a prime position opposite Cranbourne Park Shopping Centre and offered with an attractive Activity Centre 1 zoning.
Fitzroys agents James Lockwood and Chris Kombi handled the auction campaign, in conjunction with David Kalb and Keith Kooloos of Savills, on behalf of a private investor.
Lockwood said the local purchaser that eventually won out intends to occupy the property and value-add in the future.
Existing improvements on the site include a part two-level building of 1,277sqm comprising three adjoining retail spaces and showrooms.
“The property’s zoning, extensive 33-metre frontage and excellent location within one of the country’s strongest growth corridors attracted strong enquiry throughout the campaign,” Lockwood said.
Kalb said Cranbourne Park Shopping Centre is anchored by Coles, Woolworths, Kmart, Target, Harris Scarfe and JB Hi-Fi, and provided a ready-made drawcard to the immediate area, and offer further exposure to any businesses that would operate from the site.
“Investors and owner occupiers understood the long-term security and future prospects offered by a property centrally located in a retail trading area, within a suburb undergoing massive population growth,” he said.
“The site’s zoning offered a potential height allowance of 17.5 metres, which also attracted developers in big numbers.”