A PRIME commercial site in Inverloch is set down for auction on Wednesday, October 30, right in the middle of Melbourne’s spring racing carnival but it’s unlikely to represent a gamble for prospective investors. In fact, boasting a new 12-year lease with options for the ASX-listed tenant to extend, the new Mitre 10 store appears to tick all of the boxes for those looking for a secure long-term investment.
And, being offered for sale as it is, in the middle of a commercial property boom that stretches from Collins Street in Melbourne right the way out into regional areas of Victoria, it’s unlikely to be a gamble for the current owners either. With determined investors driving up prices to the point where commercial rents are returning as little as 5 per cent, it’s likely that this auction could set some sort of record in Inverloch. On offer is the key corner site on the South Gippsland Highway in the town, a property of some 7066m2 featuring an as-new building of 3515m2, together with outdoor timber yard and garden centre.
But there’s more
Also being offered at the same time, at 11am in the River Room at Crown Casino, are the Mitre 10 stores at Leongatha and Tarwin Lower. Rents are listed as follows: Mitre 10 Tarwin Lower $48,583, Mitre 10 Inverloch $262,920 and Mitre 10 Leongatha $264,545. The properties altogether could sell for between $5 million and $10 million in total as investors look for somewhere to park their money in a low interest rate scenario. “This is a great opportunity. The Inverloch store was built brand new in 2010 and the Leongatha store, one of the best in the Capeview chain has been extended twice since it was first opened in 2001. The more compact store at Tarwin Lower is a beauty for the small investor, serving the growing communities of Venus Bay, Tarwin Lower and district,” said marketing agent, Raoul Holderhead.
The properties will be up for grabs along with a selection of others from Melbourne and around the state but it’s highly likely these three will be among the most sought-after. And, just as they have done in recent times when local commercial real estate has been offered in Melbourne, South Gippsland investors will be in attendance to bid on these blue-chip local sites. The properties are being marketed by Stockdale and Leggo Inverloch and Burgess Rawson of Melbourne via their former local connections Raoul (0413 860 304) and Billy Holderhead (0422 817 696). Interested locals are invited to call Adam Leys (0407 047 674) or Glenn Bolam (0419 219 828) of Stockdale and Leggo Inverloch.