Written by The Australian Jewish News
TWO regional Westpac bank outlets are currently being marketed by Burgess Rawson directors Raoul Holderhead and Jamie Perlinger along with David Wright and Andrew Lewis from Colliers International in Ballarat. Burgess Rawson will offer them as part of its next investment portfolio auction — the last for 2015 — to be held at Crown Casino on Wednesday 9 December from 11am.
More than 50 properties will be auctioned and the agents expect strong results, reporting buoyant conditions and a spike in activity across the sub-$20-million segment of the commercial market.
The Bendigo property, situated on the corner of Mitchell and Queen streets in the heart of the CBD, has a new five-year lease to Westpac from June this year with one further option of five years expiring in 2025. Rent is fixed annually at 3 per cent and the tenant pays all outgoings including land tax.
The building was recently refurbished and has an area of approximately 795 square metres over two levels on a prime Commercial 1 site of some 825 square metres with more than 60 metres of retail frontage. It also features rooftop parking for 12 cars. Current rent is $193,138 per annum with an increase due next June.
The Ballarat property occupies the corner of Sturt and Armstrong streets, opposite Ballarat Town Hall and Myer. The site is some 1140 square metres with 68 metres of retail frontage and a right of way at the rear, which gives it strong long-term development potential (STCA). The bulk of its income comes from Westpac but sections of the building are also leased to three other tenants, including Sheridan. Rent for the property will be $375,412 per annum from January next year.
“These are incredibly prime CBD streets with high-profile addresses that will virtually guarantee occupation and growth forever. Sturt Street in Ballarat and Mitchell Street in Bendigo are the equivalent of, say, Collins Street or Bourke Street in the Melbourne CBD,” Holderhead said.
The Bendigo property is tipped to sell for around $3 million while the Ballarat property is expected to fetch a price in excess of $6 million.