Diversity Key to Potential $6m Auction
The variety and number of businesses is considered a strength of a major Albury industrial site expected to achieve about $6 million at auction on Wednesday. Measuring just more than 30,000 square metres, 200-208 North Street sits opposite Lauren Jackson Sports Centre and includes Zone Laser Tag Albury, AWM Electrical, Albury Steel Fabricators and Albury Skating Centre among its 10 tenants. Burgess Rawson associate Dean Venturato said a Melbourne father and son team had bought a property “reasonably rundown” in parts about five years ago.
“So they thought they’d roll their sleeves up and get stuck in,” he said.
“They’ve spent about $1.3 million in improvements and modifications on the building, including part roof replacement, new air conditioning motors and roller doors, roller door motors, levelling of land and better car parking areas.”
Now fully leased, the property offers a net income of about $504,000 a year.
“Diversification is one of its strong points,” Mr Venturato told The Border Mail.
“If you lose a tenant, you lose 8, 10, 12, 15 per cent of your rental, it’s not catastrophic as if compared to having a one or two tenanted building.”
To the rear lies about 9300 sqm of undeveloped land, currently used for storage, that could potentially become a new development, subject to council approval. The selling agent said this factor had attracted interest from developers as well as private investors, with inquiries coming from Queensland, NSW and Victoria.