Regional gem to peak investors’ interest at upcoming auction
A half-million-dollar upgrade could be the icing on the cake for commercial property buyers seeking a stable long-term investment in regional Victoria.
The Specialised Medical Clinic in Shepparton will go under the hammer at Burgess Rawson’s Investment Portfolio Auction this month, amid ongoing demand for medical assets and essential services.
The well-respected clinic, home to six experienced doctors, has a brand new five-year lease on the property, with options to 2035.
Burgess Rawson agent Beau Coulter, who is marketing the property with Rocky Gagliardi of Gagliardi Scott, said the property had been significantly enhanced by a recent major upgrade.
“The tenant has spent a lot of money on the building – about $475,000 in the past couple of years,” Mr Coulter said.
“It presents exceptionally both inside and out, and this substantial modernisation suggests the tenant intends to remain in the property for some time. For the future, it’s a very strong site.”
The property at 43-45 Benalla Road occupies a major 2072sqm corner site with 84 metres of dual street frontage on an important Shepparton thoroughfare, along with 30 car parks on-title.
The building spans 532sqm and incorporates consultation rooms, treatment facilities and surgery suites.
It currently returns $158,225 per annum plus GST, with 2% annual rent increases and the tenant paying the usual outgoings. In addition, investors can take advantage of the Victorian Government’s 50% stamp duty concession currently available.
Mr Coulter said investors were increasingly looking to strong regional locations, with Shepparton among the most sought-after.
“Shepparton has a large population base, it’s very central, not too far from Melbourne and it benefits from having all of the major retailers,” he said.
“Typically, everything we’ve listed in Shepparton has sold, and that’s always a good sign of a region’s prospects as a destination for investment.”
Price expectations for the property are in excess of $2.5 million.
Burgess Rawson’s first Investment Portfolio Auction of 2021 will be held at Crown Casino from 11am AEDT on Wednesday, February 24.