 Asset Class: | Retail |
 Price: | $ 1510000 |
 Net Yield: | 7.28 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<b>Multi-Tenanted Freehold Asset in CBD Location, Yielding 7%+ Net</b><br><br>This exceptional freehold investment is situated on a prominent corner lot in the heart of Bunbury’s CBD, offering high exposure on a busy street.<br><br>Positioned at a roundabout with maximum street visibility, the property has attracted strong interest from owner-occupiers who recognize the benefits of this prime location. The four units, ranging from 58sqm to 106sqm, are highly appealing to tenants due to their affordability. In 2024, the entire roof and gutters were replaced, enhancing the building’s longevity while providing potential depreciation benefits.<br><br>Two of the four tenants, occupying the largest units, have demonstrated long-term commitment to the site, with Sussan’s operating here since the 1970s and Therapy since 2014. The photography shop has just expressed to extend their 2-year option early.<br><br>Offered at $1,510,000, this asset generates a strong annual income of $110,007 + Outgoings + GST (including management), delivering a net yield of 7.28%. The leases incorporate a mix of fixed 3% and CPI annual increases, with lease expiries ranging from August 2026 to November 2027, resulting in a WALE of 1.9 years.<br><br>This is a rare opportunity to secure a well-positioned, high-exposure asset with a solid income stream and long-standing tenants.<br><br><br><b>What We Like About This Asset</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">attractive starting net yield at 7.28%+</span></p></li><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">corner block in one of best streets in the Bunbury CBD</span></p></li><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">street parking and close proximity to public parking lots (100m away). </span></p></li><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">roof, gutters and electricals replaced in October 2024 ($158k upgrade)</span></p></li><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">long term tenants (Sussan’s since 1970's, Chinese Therapy since 2014)</span></p></li><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">4 tenants mitigate risk on vacancies</span></p></li><li style="list-style-image:none;"><p style="padding-left:0pt;list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;">‘Regional Center’ Zoning with potential for multi-storey development and various uses subject to council approval</span></p></li><li style="list-style-image:none;color:inherit;font-style:inherit;"><p style="padding-left:0pt;display:inline;"><span style="color:rgb(0, 0, 0);font-style:inherit;font-weight:normal;">photo studio just exercised 2-year option early</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(0, 0, 0);font-style:inherit;font-weight:normal;padding-left:0px;">agent has had a good level of inquiries by office owner-occupiers (small and affordable units with great street exposure)</span></p></li></ul>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<b>The Retail Market</b><br><br>Bunbury serves as a vibrant regional hub with a diverse retail market. Key sectors include cafés and restaurants, supermarkets and grocery stores, and specialty retail shops. The city also supports a variety of other retail businesses, contributing to its economic diversity.<br><br>In terms of development density, Bunbury's retail landscape is concentrated in several key areas. The Central Business District (CBD) is a focal point for commercial activity, featuring a mix of retail outlets, dining establishments, and entertainment venues. The city's Local Planning Strategy emphasizes the importance of activity centers, aiming to enhance the density and diversity of retail and commercial developments in these hubs. Additionally, structure plans such as the Bunbury Centrepoint Activity Centre Plan guide the development and density of retail spaces, ensuring a balanced and sustainable growth approach.<br><br><b>Lifestyle & Population</b><br><br>Bunbury has experienced notable changes in lifestyle and population growth over recent years. As a regional city located on the southwestern coast of Western Australia, Bunbury has become increasingly attractive due to its picturesque coastal setting, vibrant arts scene, and improved infrastructure. The population has steadily grown, driven by a mix of retirees seeking a serene environment, families drawn to the city's expanding amenities, and young professionals attracted by emerging economic opportunities. This growth has been supported by investments in local facilities, including enhanced healthcare services, educational institutions, and recreational options.<br><br>Looking ahead, Bunbury is projected to continue its upward trend in population growth. The city is expected to benefit from ongoing regional development projects and increased interest in sustainable living. The local government’s focus on urban renewal and infrastructure improvements, coupled with a strong emphasis on environmental conservation and community well-being, will likely further enhance Bunbury’s appeal. This growth is anticipated to bring both opportunities and challenges, such as the need for balanced urban planning and maintaining the quality of life for residents.<br><br><b>Port Master Plan Development</b><br><br>Southern Ports has developed a Port Master Plan (PMP 2022) for the Port of Bunbury. The Plan has assessed potential trade for a 30+ year planning period, considering current and future trade opportunities and how this could influence development within the Port. <br>This Port Master Plan (2022) has been developed considering the foundation analysis provided by Southern Ports Inner Harbour Structure Plan (IHSP 2009) and Revised Inner Harbour Structure Plan (RIHSP 2019) that provide aspirational port development planning context. Concept development items have been produced for short-, medium-and long-term horizons within the 30+ year planning timeframe.<br><br>For more detail, refer to the PDF under this link > <a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.southernports.com.au/sites/default/files/2023-08/Port%20of%20Bunbury%20-%20Port%20Master%20Plan%20-%20Rev%200_Final.pdf"><u>https://www.southernports.com.au/sites/default/files/2023-08/Port%20of%20Bunbury%20-%20Port%20Master%20Plan%20-%20Rev%200_Final.pdf</u></a><span></span>
Additional Location Information File<b>Star Chinese Theraphy</b><br>Situated in the heart of Bunbury on Victoria Street we offer traditional Chinese therapies in a relaxing atmosphere. We can perform a simple massage to soothe your aches and pains however we can also treat more than just a sore back using various methods to bring the body back into balance in particular our exclusive Needleless Acupunture therapy or Meridian Treatment using bioelectrical stimulation. Our therapies offer an alternative to conventional medicine with very few side-effects.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="http://www.starchinesetherapy.com.au/"><u>www.starchinesetherapy.com.au</u></a><br><br><b>Sussan</b><br>Sussan Bunbury is a leading women's clothing store in Australia, boasts a diverse collection of Australian Cotton, European Linen Essentials and of-the-moment pieces . While they are renowned for their premium sleepwear, their collection extends to elegant dresses, versatile pants, contemporary workwear, and statement accessories. With over 140 stores across the country, Sussan is the go-to destination for those seeking a blend of comfort and style. Their curated seasonal edits and commitment to quality, make them a favorite among fashion enthusiasts. Additionally, loyal customers can benefit from exclusive VIP rewards and offers. Sussan proudly makes clothes for women, designed by women.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="http://www.sussan.com.au/"><u>www.sussan.com.au</u></a><br><br><b>Sky Studio Co </b><br>Barber Salon. Specialist in fades and precise cut.<br><br><b>Photography by Frankie</b><br>Motherhood, family & newborn photographer located in the South West. I hope to create candid emotive images capturing you & your family as you are without the awkward stiff poses. Let’s hang & have fun while creating timeless images to cherish forever.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="http://photographybyfrankie.com.au/"><u>photographybyfrankie.com.au</u></a><br>
Initial Term:
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Security Info:
Under the leases most of the outgoings are recoverable, except for management fees of 3 tenancies<br><br>Insurance $4,151pa<br>Water Rates $307pa<br>Sewer Rates $1,600.20pa<br>Shire Rates $13,733.53pa<br>Land Tax $775pa<br><br><b>Total Outgoings = $20,566.73pa ($65/sqm) (excl mng)</b><br>
Additional Financial Information FileInitial Term:
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Security Info:
Subject Property: 1/100 Victoria Street, Bunbury - 96m2 - $361/m2 (Acupunture and Massage) 2/100 Victoria Street, Bunbury - 106m2 - $453/m2 (Women’s Fashion Shop) 3/100 Victoria Street, Bunbury - 58m2 - $279/m2 (Barber Shop) 4/100 Victoria Street, Bunbury - 58m2 - $282/m2 (Photography Studio) Comparable Properties: 2/7 Cassowary Bend, Eaton - 62m2 - $387/m2 (Tanning Studio) 4/30 The Promenade, Australind - 169m2 - $304/m2 (Gym) Centrepoint Shopping Center: According to the selling agent who is the co-leasing agent for the shopping centre, the lease rates of comparable retail units sized 73-154sqm ranges between $750/sqm, $948/sqm, $975/sqm and $1,000/sqm The office market in central Bunbury is now leasing between $300-350/sqm
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<b>Purchase Price:</b> $1,510,000 <br><i>(subject to final negotiations; it is on-market with a high level of interest)</i><br><br><br><b>Current Base Rent:</b> $115,007pa + Outg + GST (excl mng)<br><b>Less Management:</b> $5,000pa + GST (not recoverable)<br><b>Current Net Rent:</b> $110,007pa + Outg + GST (incl mng)<br><b>Current Net Yield:</b> 7.28% (incl mng)<br><b>Blended NLA / Land:</b> 317.25sqm / 367sqm (freehold)<br><b>Exclusive Car Bays (Ratio): </b>None (public car park within 100m + street parking)<br><b>Purchase Rate per sqm:</b> $4,728/sqm<br><b>Blended Net Rent per sqm:</b> $363/sqm (excl mng)<br><b>100% Outgoings Recoverable:</b> Management fee of 3 units not recoverable (factored into net return)<br><b>Outgoings (per sqm):</b> $20,566.73pa (excl mng) ($65/sqm)<br><b>Age of Asset:</b> Upgraded in 1980’s to what it represents today. Entire roof and gutters have been replaced in 2024.<br><b>Are Seller & Tenant Related:</b> No<br><b>Re-letting Expectation:</b> Tenanted – expect re-letting time of around 3-6 months in current market<br><b>Flood Zone: </b>No<br><b>Bushfire Zone:</b> No<br><b>Contamination:</b> No<br><br><b>Asset Composition: </b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">367sqm Freehold</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Single-level brick and colorbond premises providing four (4) separate tenancies</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Situated on the corner of Victoria and Prinsep Streets</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Combined frontage to both streets of 42.47m</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Total of 317.25sqm of NLA</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenancy 1: 96.25sqm</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenancy 2: 106sqm</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenancy 3: 57.50sqm</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenancy 4: 57.50sqm</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The roof and eaves of the entire building were replaced in October 2024.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">No parking onsite however Bunbury largest parking precinct is located only 100m away</span></p></li></ul><br><b>Infrastructure Level:</b> Regional<br><br><b>Key Highlights:</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Freehold with 367sqm of allocated land</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">42.47m street frontage (corner lot)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">317.25sqm of lettable building area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Roof and gutters replaced in Oct 2024</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purchase Price $$1,510,000</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Blended Net Rent $110,007pa + Outg + GST (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net Yield 7.28% (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Annual increases mix of fixed 3% and CPI</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">WALE 1.68 years</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenants: Chinese Acupuncture and Massage, National Women’s Fashion Shop, Barber Shop, Photography Studio</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located 153km South of Perth</span></p></li></ul><br><b>Agent Questions:</b><br><br><b>How old is the building? </b>Appears that in the 1980’s it was extensively refurbished / extended to the design it is today.<br><b>Why is the owner selling? </b>Owner has passed away and now the children wish to sell ‘as executor of the will’ The owners live outside of Bunbury.<br><b>Are any tenants related to the owner in any way? </b>No related parties.<br><b>Are management costs recoverable under outgoings for any of these units?</b><br>T1 - Acupuncture? Commercial Lease with management recoverable under the lease (T1 did originally question why she was getting charged management now however we stated that its recoverable under the signed lease and that its just the previous manager didn’t charge them).<br><br>T2 - Sussan? Retail lease and therefore management not recoverable under the Retail Tenancy Act.<br><br>T3 - Barber? Retail lease and therefore management not recoverable under the Retail Tenancy Act.<br><br>T4 - Photography? Commercial Lease however previous managing agents excluded management being recoverable under the lease.<br><br><b>Does the property need any maintenance work (anything that will arise from the B&P inspection)?</b> As previously stated the roof and eaves have been replaced in the last 6 months. Our Asset Manager is currently upgrading the rear gate mechanism to the laneway located off the ROW. Sussan’s carpet is in need of replacing however they are aware that its their responsibility. Otherwise our Asset Manager said their was nothing further he was aware of.
