Sought-after Government lease in Shepparton attracts wide interest
A premium regional office/retail property with a sought-after government lease will be among the key offerings at a major commercial property auction event next month.
The Victoria Legal Aid office in Shepparton is a key pillar of the city’s legal precinct and occupies a prime main road retail premises.
But it’s the property’s tenancy profile that will most appeal to investors, with the State and Federal governments both funding the legal aid agency, which is classified as an essential service.
The property at 320-322 Wyndham Street – also known as the Goulburn Valley Highway – is to be auctioned at commercial agency Burgess Rawson’s Investment Portfolio Auction event in Melbourne on Wednesday, May 12.
Leased to Victoria Legal Aid on a 10-year lease to 2026 plus options to 2036, the property returns net annual rent of $126,725 plus GST, with generous fixed 3% rent increases applied each year.
The 480sqm internal space has been immaculately fitted out by the tenant, while the property also includes 10 car spaces on-title.
Burgess Rawson agent Beau Coulter, who is marketing the property with Zomart He, Billy Holderhead and Gagliardi Scott Real Estate’s Rocky Gagliardi, said the property possessed one of the strongest leasing covenants in regional retail, and would for some time.
“Victoria Legal Aid is fully funded by the State and Federal government and has been in Shepparton for a long time, and only recently moved to this premises in 2016,” Mr Coulter said.
“Importantly the property is within Shepparton’s legal precinct and less than 100 metres from the $73 million Shepparton Law Courts, which were recently rebuilt.”
“From a future standpoint, you could not find a better location.”
The property is expected to attract interest circa $2 million, with the successful purchaser to enjoy the 50% stamp duty savings currently available on regional property.
Burgess Rawson’s 144th Investment Portfolio Auction will be held at Crown Casino from 10.30am AEST on Wednesday, May 12.