The chance to secure two government tenants in one deal is the carrot that could drive a bidding frenzy for the Centrelink office building in Bega.
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The Church St property, which is leased to both Centrelink and to the NSW Government's Property NSW arm, will be put on the block at Burgess Rawson's Portfolio Auction at Crown Casino on Wednesday, September 18.
Burgess Rawson director Raoul Holderhead said government leases are considered "as safe and secure as it gets in the commercial property market", so the Centrelink office in the NSW regional hub will be a major target for investors.
The office, which has a net income of $407,398 plus GST and three per cent annual increases, is expected to sell for between $4.5million and $4.6million.
"That would give it a yield circa nine per cent, which would make it exceptional value for someone looking for a bit of a yield play," Mr Holderhead said.
The three-level building at 49-61 Church St was newly fitted out in 1999 and offers 2486sqm of floor space on a 1242sqm site, along with 18 basement car spaces.
Adding to the property's appeal, it comes with secure Net leases, meaning the tenants pay all outgoings, including land tax. Centrelink has a secure seven-year lease with options to 2031, while Property NSW has a five-year lease plus options to 2029.
"It's a super building. Bega is a great town backed by Bega cheese, which is the biggest employer in the area," Mr Holderhead said.
Burgess Rawson's Investment Portfolio Auction will be held in Crown Casino's River Room at 11am on Wednesday, September 18.
