The Camberwell home of Ambulance Victoria in Melbourne’s high-performing inner-east commercial market has been listed for sale, presenting a secure, COVID-proof income-producing opportunity with future value-add and development potential.
Fitzroys’ Chris James and David Bourke together with Patrick O’Callaghan of O&Co are marketing 612-616 Camberwell Road, Camberwell, on behalf of a private owner.
The property goes to auction on Thursday, 25 March at 1pm on-site.
The modern 275sqm single-storey facility was purpose-built for Ambulance Victoria and is on a large 597sqm site zoned Commercial 1, with a substantial 16.5m frontage to Camberwell Road and a rear lane.
The building includes open-plan offices and amenity, with seven on-site parking spaces at the rear.
Ambulance Victoria has a secure long lease returning $137,735 per annum plus outgoings.
Bourke said the essential service nature of the tenant presented an incredibly rare opportunity that offered a secure, COVID-proof income stream, as well as future value-add and development prospects.
“Astute investors and land bankers will recognise the versatile prospects that augur well in the near future and long-term.
“Among investors’ top priorities is securing property leased to tenants that can and will pay rent. Ambulance Victoria is a top-line essential services provider, and a tenant that can weather any circumstances.”
He said securely-leased bricks and mortar assets offer an increasingly attractive income-producing investment in a period of all-time low interest rates, which is set to last for an extended period. The Reserve Bank has recently flagged the current historic low rate of 0.1% is unlikely to move until 2024.
“Investors are looking for income and wanting to avoid holding cash in the bank, which returns more or less nothing in the ultra-low interest rate environment,” Bourke said.
“Meanwhile, land bankers and developers can be assured of a secure income stream from this property for some time as they assess their options.”
The site’s zoning and location amounts to an incredibly strong underlying land component, with Boroondara City Council allowing a maximum overall building height of 14.5m.
Patrick O’Callaghan said the property is prominently positioned on Camberwell Road, within the within the highly regarded Middle Camberwell mixed-use precinct, and just metres from the junction of Toorak Road further allowing easy access to major arterials.
It is between the multi-level, mixed-use Mayada development, and Melbourne City Toyota, while high-profile office tenants close by include Hanes Brands, Australian Physiotherapy Association, Estia Health and Baptcare.
As well as commercial offices and multiple medium-density residential developments, also nearby are Hartwell train station, the Route 75 tram, the popular walking and cycling Anniversary Trail and Leo’s Fresh Food & Wine Supermarket.
“The site’s highly-accessible inner-east location, proximity to excellent lifestyle amenity and within an established catchment undergoing another growth phase make the property’s future prospects conducive to ongoing investment, as well as a range of residential, retail and commercial development outcomes,” O’Callaghan said.