This article is from the Australian Property Journal archive
AFTER hosting the recent series of Channel 9’s The Block and of a historic 1840s century pub building sale, Gisborne in Victoria has seen yet another notable commercial property transaction with a business centre selling for $23.17 million.
Located in the Macedon Ranges, the Nexus Business Centre was developed in 2008 and has 7,552 sqm of building comprising ground level retail, upper levels of office space and secure carparking. It is anchored by an ongoing lease to Suncorp (to house its AAMI Call Centre), the Country Fire Authority (CFA), the Victorian state government, Bendigo Bank and others.
Based on the current income, the sale price reflects a passing yield of approximately 7.06%.
CBRE’s Scott Orchard and Tom Ryan negotiated the sale on behalf of the private family who developed the property.
Orchard said this was CBRE’s third $20 million-plus office sale in six weeks after a period of investor inactivity mid-year.
“The string of sales show buyer confidence is improving, and investors are focusing on assets where we can demonstrate strong fundamentals, future growth and upside opportunities, coupled with strong income providing adequate interest coverage to assist with debt support.”
Ryan said a common thread between the recent sales is a strong replacement cost story.
“This is heightening the appeal of certain assets due to ongoing supply chain and increased construction cost challenges.”
While the Nexus Business Centre was a large asset in context to the local market, Ryan noted that the market wide flight to quality trend helped underpin investor interest in the sale campaign.
“We were able to demonstrate how unique and well positioned the property is with no accommodation like it in the region, evidenced by its strong occupancy history.”
Channel 9’s latest series of The Block was filmed in the tree-change town and saw a record result and multiple properties acquired by serial series buyer, millionaire Danny Wallis. At the same time, the former Macedon House Hotel site – including the original 1847 building – on a 20,950 sqm parcel was bought by a builder part of a local development group for $2.525 million.
