ANZ bank premises in Korumburra sell for $462,000

The premises of an ANZ bank branch in the Victorian heritage country town of Korumburra in South East Gippsland has sold at auction today for $462,000.

It had pre-auction hopes of around $325,000 with bids starting $300,000.

There were around six bidders and the property sold on a yield of around 5.2%.

The bank premises, with a three year lease beginning January 2013, were marketed by Raoul Holderhead and Jamie Perlinger of Burgess Rawson.

Located at 27 Commercial Street – the main retail strip running through the town – the two-level brick building measuring 177 square metres brings in annual income of just under $25,000.

It is leased to ANZ for three years with renewal options and with fixed 3% annual rent increases.

It has seven metres of street frontage and includes an ATM in the lobby.

The building which has housed the bank for 25 years was recently upgraded at a cost of $230,000.

The most recent sale on Commercial Street was a vacant shopfront measuring 110 square metres, which sold for $159,000 plus GST through Alex Scott & Staff - Korumburra. It had been listed at $180,000.

Korumburra, which dates back to the 1880s, is 120 kilometres south-east of Melbourne with a trade catchment population of around 6,000 people.

It is the base of the popular tourist railway South Gippsland Railway.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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