This article is from the Australian Property Journal archive
THE City of Ballarat has divested a childcare centre for $1.225 million under the hammer, while a freehold office investment in the regional city sold at the same auction event for $985,000.
Multiple bidders competed for the assets at Ray White Ballarat’s June in-room auction event. Both assets were marketed by Trevor Booth and Tracey Holmes.
The childcare centre at 112 Armstrong Street North was offered with vacant possession after the centre was relocated to a new facility in Eastwood Street, and was no longer required by the council.
Interest came from owner occupiers for childcare and conversion to professional uses. Biddings started at $750,000 before the property sold to a locally-based business that purchased the property for expansion of their existing business operations.
“The property was particularly appealing because it’s opposite the new Gov Hub that’s currently under construction, and when open in 2021, will house 1,000 employees in a range of existing and new government agencies to be relocated to Ballarat,” Holmes said.
The freehold office investment at 31 Armstrong Street South sold at a 6.2% yield. Holmes said demand is good, but commercial investment stock in the area is low.
She said the sale showed commercial investors are still active in the market and they are prepared to accept yields of between 5.5% and 6.5%.
“The asset was purchased by an investor seeking better-than-bank interest return and capital growth, and that was reflective of the interest we saw throughout.”
