Hamilton office leased to two governments sells for $6.75 million

An office leased to the Morrison and Andrews governments in Victoria’s regional Hamilton sold for $6.75 million last Thursday.

When the investment at 258-264 Gray Street was listed five weeks ago, it formed part of Burgess Rawson’s 135th monthly auction event which was scheduled to happen on Wednesday, April 1 in Melbourne.

Instead, like all properties in that portfolio, the campaign was converted to private sale treaty following social distancing measuring to curb the COVID-19 spread.

Beau Coulter and Raoul Holderhead with Hamilton-based LMB Linke’s Graeme Linke brokered the deal.

Burgess Rawson said that to date it has sold $32.665 million worth of stock which was to have been put up for public sale.

This includes Williamstown’s 130 year old Stags Head Hotel at 39 Cecil Street trading for $2 million on a 4.1 per cent yield and Shepparton’s swanky 20-24 Welsford Road office, tenanted by ASX-listed PSC Insurance, for $4 million – a 6.37 per cent return.

Ballarat late night venue The Bluestone, hasn’t yet sold.

The historic three storey, renovated building returns annual rent of $320,000 on a lease which, with options, could see the occupier stay until 2044.

Late last month we reported about another two deals from Portfolio 135: a Rosebud petrol station which fetched $7.6 million and a Tarneit childcare centre, trading for $5.45 million.

Centrelink Hamilton

The agents marketing 258-264 Gray Street said the investment offered a 10-year lease to both the federal government (for Centrelink) as well as one to the Andrews administration (Department of Health and Human Services).

It is fully leased, returning $591,961 annually – with fixed yearly rent rises (4 per cent for the Liberals, 3 per cent for ALP).

Constructed in 2012/2013, and partly updated since, the incoming owner will also be able to claim depreciation (taxation) benefits.

The 1370 square metre office sits on a 2987 square metre parcel also configured with 41 car parks (12 undercover), accessed from Sedgewick Street.

In central Hamilton, the land is zoned Commercial 1, meaning it could be replaced with a mixed-use project containing residential.

The property is within an important commercial centre with a trade catchment of more than 30,000, the marketing agents said.

By Marc Pallisco, realestatesource.com.au

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