Held by current owners for 100 years, a retail precinct comes to the market as a strong-yielding asset

23 May 2024

Brought exclusively by Colliers, the property is situated within Bendigo’s core retail precinct and thriving activity centre. The asset comprises thirteen fully let tenancies encompassing a WALE of 3.34 years diversified and reliable income stream on a sizeable, combined land allotment of 1,935 sqm with three street frontages. The significant retail investment opportunity is offered for sale via expressions of interest closing at 4:00 pm Friday 14th June 2024.

Colliers’ agents Travis Hurst, Adele Foott, Matt Stagg and Yvonne Zhou are managing the listing on behalf of a valued vendor. Colliers Managing Director of regional Victoria, Travis Hurst, said that they anticipate this property will be sold as a strong yielding asset, given the diversified income level it is offered at.

Located on 12-24 Mitchell Street, 1-3 & 7-9 Bath Lane and 338-348 Hargreaves Street, Bendigo, the high-profile retail precinct sustains a NET income of $503,264.80 per annum on a lettable building area of 2,595 sqm.

Positioned in a high-profile corner within the Bendigo CBD, its diversified rental income includes an array of national tenants like Gazman and Sportspower as well as several local occupiers offering a variety of retail services. While securely leased, Mr. Hurst said there was room for long-term capital growth in the buildings.

“There is an opportunity for future growth in rent return and expansion of revenue streams across all buildings by way of repositioning the asset and pending market rent reviews. The buildings have a wide scope for varied and unique opportunities,” Mr. Hurst concluded.

The impacts of Covid lockdowns in Melbourne saw an influx of residents to regional Victoria and this trend has been followed by a shift in focus from metropolitan investors to regional Victoria.

According to Colliers experts, these investors are chasing higher returns from assets regarded as being as safe as those similar assets in metropolitan centres.

Colliers Head of Investment Services Victoria, Matt Stagg, commented, “The region offers great value to investors that typically are in Melbourne or city fringe. They are now looking at key regional areas of Bendigo, Ballarat and Geelong, which offers a great value and higher yields.”

The population growth in the major regional centres of Victoria, Bendigo included, has been around a steady 2% growth per annum for many years and is predicted to likely continue with a slight rise. Indeed, Bendigo actively promotes an enviable regional Victorian lifestyle while offering an attractive median house price of $589,000 compared to other regional cities.