State government leased office in Shepparton listed

A Shepparton office space currently leased to the state government has been listed for sale.

The ground floor office at 307-331 Wyndham Street, on the corner of Fraser Street, is to be sold subject to registration of a subdivision.

The lot is approximately 965 square metres and has street frontages of approximately 39.2 metres to Wyndham Street and 19 metres to Fraser Street.

The current tenant is the Department of Justice, which has been occupying the premises since 2009 and has a five-year lease which commenced in September 2014, with an option for an additional five years.

The current rental is $162,612 per annum net, with the lease providing fixed annual rental increases at 3.5%, with a market review applicable to the option.

The property is being marketed by selling agents Gray Johnson, in conjunction with local agents Gagliardi Scott Real Estate.

Gray Johnson’s Scott Ashby says he anticipates that the investment will sell on a yield in the 9% to 10% range.

“At a time when yields on commercial investments in Melbourne are transacting in the sub five percent range, this offering provides investors an opportunity to acquire an asset on a comparatively more attractive yield,” he said.

It is to be sold via private sale with the deadline closing on Wednesday 5 April at noon.