Victoria’s commercial property market has again demonstrated its resilience with another huge online auction result during a COVID lockdown, this time setting a record yield for a retail property in the major regional centre of Shepparton.
261-267 Wyndham Street Shepparton was initially slated for an Expressions of Interest campaign, the overwhelming enquiry seen during the campaign - enquiries totalled more than 100 - saw the property then scheduled to go to online auction, held from the home of Fitzroys Director David Bourke with 30 interested parties dialling in.
“This is another sale that the demonstrates the online auction forum works well for all parties. The transparency of the auction process is maintained, while huge results continue to be seen for vendors,” Talbot said.
“The pent-up demand, together with technological and logistical advances seen over the past 18 months alone have made parties much more confident in proceeding with auctions and achieving a strong result. We have yet more evidence that this works.”
Talbot said commercial and retail property sales in Shepparton have typically achieved the 5.5% to 6.5% yield range, however Fitzroys’ effective marketing, large qualified investor database and competitive auction process achieved the new record yield.
The property comprises a substantial two-level, 587sqm building that underwent a $1.5 million refurbishment in 2019 to now comprise an ultra-modern fit out consistent with ANZ’s latest corporate standards.
ANZ has a secure 5+5+5-year lease returning $115,927 per annum plus outgoings plus GST. The lease includes annual 3% increases, and a market rent review at option with ratchet clause. Prominently positioned in the heart of Shepparton’s’ thriving CBD hub, the 617sqm site is zoned Activity Centre 1 that allows potential for a range of alternate uses and development outcomes in future.
“This property ticked all the boxes of a secure commercial property investment, with a long-term lease to a quality, ASX-listed tenant generating a reliable income stream, positioned in the heart of commercial centre and in a location primed for sustained growth,” Talbot said.
He added, “We are witnessing a scarcity of metropolitan Melbourne stock flevels, with Melbourne-based investors frustrated with current opportunities. Accordingly, there is a large volume of capital that investors are willing to deploy and Melbourne-based buyers are demonstrating a keen appetite for regional property with strong lease covenants, supported further by state government stamp duty benefits, and adding to the competition.”
Waddell said many Melburnians are using the COVID environment as an opportunity for a tree-change, and the popularity of Shepparton reflected the growing attraction of highly-accessible major regional centres with strong economic foundations, particularly while flexible work arrangements are in vogue
“Shepparton is the capital of the Goulburn Valley and is surrounded by a large agricultural sector predominantly with the harvesting of fruit, the production of dairy products and livestock sales.
“The influx of new residents has added to its vibrancy, and is supporting the viability of businesses and commercial property investments,” he said.