Gov Hub building in regional Victoria to hit the market28 September 2021
A longstanding Government building will be sold in the regional Victorian town of Sale, after almost 30 years of tenure with both the State and Federal Government.
The property will be sold via a Public Expression of Interest campaign, to be handled by national agency Stonebridge Property Group.
The property is located at 150-154 York Street in the heart of Sale, occupying a 4,404 sqm site and surrounded by retail, commercial, education and other uses, including a Dan Murphy’s and Australia Post adjacent. The building has been securely leased to government tenants since being constructed in 1996, with major upgrades and extensions occurring in 2007 and earlier this year, to comply with Federal and State Government standards.
“Given the significant amount of capital invested by the vendor earlier this year and throughout the 25-year building cycle, the building has effectively no short-term capital expenditure requirements, providing investors with a safe investment couple with depreciation tax benefits to take advantage of straight away.” Stonebridge’s Rorey James noted.
Regional Victoria continues to be sought after by investors looking to capitalise on the 50% stamp duty concessions together with the growth coming from these core regional hubs, with Stonebridge reporting very strong sales in the past few months across their business in Victoria including the Spotlight building in Sale for $4.55m, United Stawell ($8m), Bendigo Corner ($6.75m), Coles Swan Hill ($20.075m) and Coles Woodend ($33.3m).
Stonebridge’s Head of Asia Practice, Kevin Tong said that “with a continued flight to quality from buyers towards safe haven investments, this Government building in Sale offers a very secure income stream from 2 longstanding tenants in the Department of Health and Human Services (DHHS) and Services Australia (Centrelink). It is a very safe bet and one that will provide a 50% stamp duty discount to buyers.”
Following the major total refurbishment earlier this year, both tenants recommitted to the building through new lease terms and option periods, with the property now bringing in just over $660,000 net per annum, with fixed annual rental increases across both leases.
The public expression of interest campaign is scheduled to close late October.