This article is from the Australian Property Journal archive
A HERITAGE-listed Kangaroo Island property leased to ANZ Bank since 1951 has hit the market, offering a wide range of repositioning possibilities in the South Australian tourism hotspot.
The two-storey 409sqm building occupies a 520sqm corner site at 62 Dauncey Street, Kingscote with the ANZ tenancy and three-bedroom residence on the first floor returning a combined holding income of $73,416 per annum.
Jack Dascombe, Rhys Newman and Jordan Schmidt from Colliers are managing the sale via an expressions of interest campaign.
“This asset presents an excellent commercial opportunity for investors and owner-occupiers, given its strategic position in the heart of Kangaroo Island’s retail and hospitality hub,” said Newman, associate director of investment services at Colliers.
The bank sits within the town centre and within walking distance of dining, retail and tourism amenities. With Kingscote a 30-minute flight out from Adelaide Airport.
The building was initially built in 1922 for the Union Bank of Australia and could be repositioned for use as office, retail, hotel, consulting, residential, and tourist accommodation.
“Significant public and private investment continues to enhance the island’s infrastructure and tourism amenities, with over $166 million worth of upcoming projects,” said Dascombe, executive at Colliers.
“Key improvements include the current construction of two ferries to increase passenger capacity and travel frequency, the proposed Art Museum of Kangaroo Island, and the recently completed five-star hotel Southern Ocean Lodge.”
Tourism on Kangaroo Island generates $280 million of revenue across 110 local businesses, with one in three job s related to tourism on the island.
“With the current interest rate environment and the subsequently higher borrowing costs, investors are seeking higher yielding commercial opportunities,” said Jordan Schmidt, head of investment services South Australia at Colliers.
“Regional properties typically trade at a softer yield, meaning opportunities like 62 Dauncey Street offer investors a strong value proposition.”
The expressions of interest campaign for 62 Dauncey Street, Kingscote is scheduled to close on 30 October 2024.
