Two regional Victoria bank retail sites sold at strong yields

Two retail properties anchored by Westpac were sold under the hammer in Ballarat and Bendigo in Victoria.

The 302-306 Sturt Street property in Ballarat (above) fetched $5.7 million for a yield of 6.5%, while the one at 49-53 Mitchell Street in Bendigo sold for $4,575,000 on a 4.22% yield.

Both properties are anchored by Westpac, with other smaller adjoining retail spaces forming part of the whole property.

The Ballarat property is opposite the local town hall and Myer building.

Selling agent Andrew Lewis of Colliers International said 2015 had been a year of strong investment sales across the region.

“Low interest rates have fuelled increased interest in commercial real estate, particularly in the retail sector,” he said.

“We have sold in the order of 10 properties around the region in the last 12 months at yields of between 6% to 7%.

"This is some 1% to 1.5% lower than 12 months ago.

"We see this trend continuing into 2016.”