In the Medical Precint
A major office building in Bendigo’s booming medical and commercial precinct is on the market, at a time when regional properties are soaring up investors’ wish lists.
The three-level building at 30-32 Bridge Street is leased to both ASX-listed Dorevitch Pathology and local water authority Coliban Water, and presents as a prime opportunity to secure a long-term investment with two A-grade tenants.
The property was once home to the Bendigo Weekly, and is owned by a local consortium associated with the publishers of this newspaper.
Positioned close to the new $630 million Bendigo Base Hospital, the impressive property was fully redeveloped in 2007 and sits on a 1036sqm site with dual frontage and 16 on-site car spaces.
It is being marketed by Burgess Rawson’s Jamie Perlinger and Scott Meighan, in conjunction with Dungey Carter Ketterer’s Robert Ketterer and First National’s Tom Harrop, and will be auctioned at Burgess Rawson’s upcoming Investment Portfolio Auction at Crown Casino on Wednesday, August 7.
The agents are anticipating a yield of around seven per cent for the asset, which earns $277,885 per annum in rent and is more than 80 per cent leased to Coliban Water to 2024, while Dorevitch Pathology will lease the remainder of the building until at least June 2022. Both tenants have an additional five-year option.
Perlinger said the two longstanding tenants, coupled with Bendigo’s current and expected growth, made the Bridge Street office a terrific investment proposition.
“Investors are really looking to these regional hubs because there’s so much growth there. The residential market is booming and that requires more amenity and infrastructure, with established commercial properties and tenants benefit from that,” Perlinger said.
“Coliban Water are one of the biggest utility authorities in Victoria. Their reach stretches across 49 regional areas, including Bendigo, up to Echuca and down to Kyneton.”
“Their head office has been across the road for 25 years. This is their overflow building – they’ve been here for 10 years already, and they’ve just taken up their next five-year option. There’s data linkage between the two buildings, they’re fully integrated and they’ll be here for a long time yet.”
Meighan said the site was also a key location for Dorevitch Pathology, with their laboratory situated directly next door.
“It’s right in the middle of the Bendigo Hospital precinct and the Bendigo CBD. Bridge Street is the main thoroughfare between these two, and it’s been identified as a priority growth and development precinct for the local council.”
“Sites within this part of town are key to the cities long term growth and one of the best opportunities on the market in Bendigo at the moment.”
Burgess Rawson’s 130th Investment Portfolio Auction will be held in Crown Casino’s River Room at 11am on Wednesday, August 7.
By Bendigo Weekly