A TWO-STOREY office building in central Geelong is better than a bank at the moment, given the current low savings interest rates.
The well-presented building with 761sq m of floor space is being offered at auction as a freehold investment opportunity.
Darcy Jarman, Newtown, agent Tim Darcy said the 600sq m property at 15 Little Ryrie Street, Geelong, offered buyers a set-and-forget opportunity for the short to medium term.
Mr Darcy said the freehold property was in an activity centre zone, which presented a long-term value opportunity.
Not-for-profit disability, ageing and community service provider GenU has recently signed a new five-year lease, with an option for an additional year, providing annual rent of $135,000, with fixed 3 per cent annual increases.
Mr Darcy expects the property will sell in the high $2m range.
The property is on the north side of Little Ryrie Street, next to Centrelink and the Australian Taxation Office, and close to St John of God Hospital.
Surrounding development comprises predominantly established commercial premises of mixed age and construction, and secure residential apartment complexes currently under construction.
“It’s about as good as it gets as a set-and-forget investment in the short to medium term,” he said.
Mr Darcy said interest was solid, with local and external buyers.
“They’re very much looking at a secure passive investment, with a secure recurring income,” he said.
“First and foremost, they’re looking for somewhere to park money and get a return on their capital.”
Mr Darcy said the freehold property was serviced by two street frontages to Little Ryrie Street and Cuzens Place.
The 604sq m land component has potential long-term redevelopment scope, which is enhanced by its freehold status.
The original part of the building is double brick, with a rear extension completed six years ago with a concrete tilt panel construction.
The building presents in excellent condition throughout and comprises open-plan office space, partitioned offices, meeting rooms, training rooms, a kitchenette and toilet/ bathroom facilities.
Undercroft carparking and a storage area at the rear includes eight car spaces.
The property goes to auction on March 31 at noon.