Sale boosts property market

Leongatha’s commercial market has been buoyed by the sale of a first class building for $1.49 million last week.

The property at 41 McCartin Street (Gippsreal building) was bought by a buying group from South Gippsland.

The price tag will net the new owners a yield of approximately 7.86 per cent based on the $117,000 net income.

The property was sold by Burgess Rawson of Melbourne and Landmark Harcourts Real Estate in Leongatha.

Burgess Rawson’s Raoul Holderhead, formerly of Leongatha, described the sale result as ‘super’.

“The Gippsland campaign generated 40 enquiries and eight parties looked through the property, and we had five bidders in the room,” he said.

Mr Holderhead said the South Gippsland buying group bought the property to get a decent return on their money.

He said the sale price was higher than expected.

“Leongatha is a great little town with dairying, education and the council major employers,” Mr Holderhead said.

The auction took place among a suite of others at Crown Casino in Melbourne, where sales totalled $124 million.

The Leongatha property was the only offering from South Gippsland, with the others coming from across Australia.

The sale was no doubt helped by the long-term lease Gippsreal has on the property.

Gippsreal will continue to operate from the premises.

Published in The Great Southern Star

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