We had a lot of interest, both locally and around Australia.
- Mark Wilson
Confidence in Warrnambool's commercial real estate market is strong, with the former home of The Standard snapped up for $5.575 million.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Wilson Real Estate, together with Burgess Rawson and Associates, auctioned the 1500-square-metre Raglan Parade property earlier this month
Agent Mark Wilson said there were a number of parties interested in the site.
"We had a lot of interest, both locally and around Australia," Mr Wilson said.
"The price exceeded expectations and it showed several things.
"First of all it showed the strength of Warrnambool as a place to invest in and secondly it showed the value of a state government lease for seven years."
Mr Wilson said a Melbourne investor snapped up the building, which is being leased for $287,100 per year - a yield of 5.15 per cent.
The fit out of the property, which offers 28 metres of highway frontage and on-site parking, is due for completion in July.
The property was auctioned at Crown Casino in Melbourne on Wednesday, March 31.
It will be used by Family Safety Victoria Orange Door to support families experiencing family violence.
Mr Wilson said there were a number of parties interested in leasing the building, with the state government's department of treasury and finance the successful tenant.
The property is being totally revamped.
"Having seen the extent of the refurbishment plans being undertaken by the tenant, I'd anticipate the fitout cost to be in the order of $2 million," he said.
The proximity to the CBD and space offered made it an attractive prospect for a number of uses, Mr Wilson said.
He said the property offered certainty to the buyer in uncertain times. "Any property that has a government or quasi government tenant on a long-term lease in virtually a new building will be an attractive opportunity," Mr Wilson said.
"We had numerous inquiries - both commercial interest and interest from other government agencies.
"We have even had inquiries since the lease was signed, with one person who probably would have taken it."
The Standard relocated to Kepler Street in 2017.
Listen to the latest episode of our weekly podcast The Booletin and Beyond:
Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.
