Double- digit return rate
A DOUBLE digit return in this low interest environment is an investor’s dream but it seems the value of this Ingham property is yet to register. Until now.
Ray White Commercial Townsville has been marketing the commercial office building at 48 Herbert St for some time.
So far the firm’s director, Adrian Pascoe, said they had received a “few nibbles”.
However, he said he was still keen to hear from investors for what he believed was quality asset.
“This is an investment opportunity that attracts a high yield,” Mr Pascoe said.
“It is probably one of the best buildings in Ingham.
“We’ve had a few nibbles so far but I’m a little surprised that it is still available.
“The likes of this sort of property would be attracting a much lower yield and much higher price in southern markets.” The property features a fully airconditioned office building of 660sq m including partitioned offices, open plan work areas, staffrooms, dis- abled and shower amenities and external breakout area.
The office is disabled compliant with electric glass sliding doors and complies with the tenants’ stringent security re- quirements such as swipe card readers.
There is a sealed car park at the rear of the 2023sq m property for 23 cars, secured by electric gates, with two under- cover parks secured by an electric roller door.
The property was purpose built to Federal Government requirements and is leased to Medicare and Centrelink until 2021 with options to extend those leases to 2027.
Mr Pascoe said its current gross rental was $ 371,083 and the vendor had just reduced the price to around $ 3.2 million.
This gives the property an annual return of 9.875 per cent.
He said when the next annual review linked to the Consumer Price Index was taken in November the yield would increase to more than 10 per cent.
“That makes it a double digit return which should be very appealing to investors,” Mr Pascoe said.