Strong Tenancy Profile with Upside Underpin the sale of the Nexus Business Centre

A roster of ASX-listed and government tenants is expected to drive strong interest in the sale of the Nexus Business Centre, Gisborneโ€™s pre-eminent office and mixed-use complex. 

The CBRE Capital Markets Office team of Scott Orchard and Tom Ryan have been appointed to sell the prominent property on behalf of the private family that developed the complex in 2008 

The property comprises a main, three-level building with a total net lettable area of 7,552sqm, including ground floor retail, upper levels of office space and secure carparking. There are also two street front satellite buildings on the one title over 8,000sqm of land.  

The complex has enjoyed a strong occupancy history since construction and offers a diverse income stream, with fully leased net income potential of $1,910,000 per annum.  

It is anchored by leases to Suncorp, (housing its AAMI Call Centre), the Country Fire Authority (CFA), Victorian State Government, Bendigo Bank, Carpet Call and other long-standing tenants and benefits from its central location in the Macedon Rangesโ€™ major regional township of Gisborne, approximately 55km north-west of the Melbourne CBD. 

Gisborne is a hub for government, health Services and employment, with the Nexus Business Centre recognised as the regionโ€™s premium office accommodation centre. 

CBRE Senior Director Scott Orchard said, โ€œOpportunities to secure such a significant piece of a popular and high growth township are rarely available. The timing of the sale is also opportune given the recent signing of a new five-year lease term with Suncorp and the renewal of the CFA lease, which will provide the incoming owner with a very attractive passing yield.โ€ 

Mr Orchard noted that buyers were also likely to be attracted to the asset due to the replacement cost context, given the extent of the improvements and land component in an environment of rapidly rising construction costs. 

CBREโ€™s Mr Ryan said the limited availability of competing accommodation options in the region would continue to hold the asset in strong stead, as would the complexโ€™s value add potential. 

โ€œDespite the diverse income stream there are great opportunities to add further value and improve returns greatly, with the asset also offering strong depreciation opportunitiesโ€ Mr Ryan said. 

The property is surrounded by an array of public amenities including public transport, retail, recreational and entertainment drawcards and is located opposite the Gisborne Village Shopping Centre.  

Expressions of Interest close Tuesday 31st May at 5pm. 

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