Caboolture office property leased to federal government expected to be a magnet for investors
A rare federal government-leased building has been attracting “solid interest” before it goes to under the hammer at the Burgess Rawson portfolio auction in Sydney on Tuesday.
The Department of Human Services, which has occupied the building for 25 years, has recently renewed its lease on the double-title office block at 21 Hasking Street, Caboolture, Queensland. The new lease term is four years plus two three-year options until August 2027.
Although Burgess Rawson sales agent Pat Kelly, who is heading up the campaign with David Ingram and Darren Beehag, would not quote a price on the listing, the annual net rental income is about $504,000.
Twelve commercial properties will go to auction in Sydney on Tuesday. Photo: Supplied
Mr Kelly attributed the buyer interest to the property’s high income and its long-time government tenant.
“These government buildings are quite rare, you don’t see too many of them,” he said.
“They’re hard to find and people like the government lease.”
The office building is one of 12 commercial properties in NSW, Queensland and Tasmania to be auctioned, ranging from fast food restaurants, service stations and childcare centres. Price guides for the assets start from about $1 million to more than $7 million.
Another popular investment is a Red Rooster restaurant in Mount Annan, in south-west Sydney, which drew in 150 buyer enquiries and more than 50 contract requests.
A retail property in Bowral, in the NSW southern highlands, leased to a newsagency is on the market for the first time in almost a century, attracting 90 inquiries and more than 30 contract requests.
A cafe in Sydney’s Darlinghurst, leased to patisserie Kurtosh, sold before auction day for $2.4 million.
The portfolio auction will be held at Doltone House Hyde Park, 181 Elizabeth Street, Sydney, from 11am.
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