City properties expected to fetch a total of about $5 million

Tuesday 12 February 2019

Two commercial properties expected to fetch a total of about $5 million will go under the hammer at Crown Casino later this month.

Warrnambool’s Monaghans Healthwise Pharmacy building in Fairy Street and the current ANZ bank premises at 128 Liebig Street will be auctioned at Crown Casino on February 27.

Both properties are listed with Warrnambool’s Ludeman Real Estate, in conjunction with national commercial real estate firm Burgess Rawson.

Ludeman Real Estate director Mark Dwyer expects both properties to be purchased by investors due to the current leases.

“A lot of investors in Melbourne can’t find that yield so we’re finding a lot of the Melbourne-type investors are coming to the country areas, especially in a tightly-held area like Warrnambool and they’re finding they’re getting better returns for their money.”

Mr Dwyer said Melbourne was chosen as an auction location to attract a larger pool of buyers and to get the best result they felt they “had to take it to that market”.

“They’re going to be offering a good yield,” Mr Dwyer said. “A lot of investors in Melbourne can’t find that yield so we’re finding a lot of the Melbourne-type investors are coming to the country areas, especially in a tightly-held area like Warrnambool and they’re finding they’re getting better returns for their money.”

He said the Monaghan’s premises were leased for the next five years and there were options to extend it through to 2034.

Mr Dwyer said the Fairy Street pharmacy was listed about two to three weeks ago and there had been very good interest.

“We’re looking to offer an eight to nine per cent return on the investment,” Mr Dwyer said. “The rental on it is $281,000. The building’s been recently refitted out by the pharmacy and is in A1 condition.”

“National Pharmacies run it and they’ve been in operation for 100 years. They’ve got 51 pharmacies in South Australia, Victoria and New South Wales. They’re a national company so that gives the investors very good security in buying that property.

“With our region, everybody knows Monaghans has been a pharmacy in Warrnambool since I can remember. For stability it gives people that are looking to buy it a lot of confidence.

“I would say 100 per cent it will remain a chemist. I think the people that will buy it are only buying it as an investment and it would be business as usual.”

Mr Dwyer said buyers of the ANZ would receive about a six or seven per cent return on their investment.

“We see it as a blue chip investment so it’s going to be investors who are interested. There’s a 10-year lease until 2024 with options to 2039.

“The good thing about this one is the current rent is $104,334, that is as from 2019 and has got three per cent fixed increases. Like the other one it’s another very good investment property right in the heart of Warrnambool and we expect it to sell very well.

“On both properties we’ve had local and Melbourne interest on them and are very confident both properties will sell.”

To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please contact us.

Written by Madeleine McNeil, The Standard

View the original article here.