 Asset Class: | Industrial |
 Price: | $ 2500000 |
 Net Yield: | 5.72 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<span style="font-weight:normal;">A modern, low-maintenance investment, 2 Basil Way, Alfredton offers secure income with strong uplift potential through rent reversion at lease renewal in December 2025. Built in 2021, the near-new facility requires no immediate capital expenditure, ensuring peace of mind and stable cash flow for investors.</span><br><span style="font-weight:normal;">Located in a high-growth industrial and recreational precinct, just </span><b>4km from Ballarat CBD</b><span style="font-weight:normal;">, the property is positioned for future rental upside which can be realised in form of a lease renewal as settlement condition. A true set-and-forget investment, delivering long-term income security and minimal management requirements.</span><br><span style="font-weight:normal;">Further enhanced by strong depreciation benefits and a </span><b>50% stamp duty concession</b><span style="font-weight:normal;"> (saving $71,250), this is a prime opportunity in one of Victoria’s fastest-growing regional markets. </span>
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<span style="color:rgb(51, 51, 51);">Ballarat is Victoria’s </span><span style="color:rgb(51, 51, 51);"><b>third-largest city</b></span><span style="color:rgb(51, 51, 51);">, with a growing </span><span style="color:rgb(51, 51, 51);"><b>population of approximately 118,000</b></span><span style="color:rgb(51, 51, 51);"> and a </span><span style="color:rgb(51, 51, 51);"><b>Gross Regional Product (GRP) of $7.44 billion</b></span><span style="color:rgb(51, 51, 51);">. Once defined by its gold mining heritage, Ballarat has transformed into a diverse regional economy, driven by health, education, construction, and manufacturing, positioning itself as a key economic hub in Western Victoria.</span><br><br><span style="color:rgb(51, 51, 51);"><b>Key Industries Driving Ballarat’s Economy</b></span><br><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;">Health Care & Social Assistance</span></p></li></ul><span style="color:rgb(51, 51, 51);">Ballarat’s largest employment sector, supported by Ballarat Base Hospital, St John of God Hospital, and growing aged care and allied health services.</span><br><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;">Education & Training</span></p></li></ul><span style="color:rgb(51, 51, 51);">Home to Federation University Australia and multiple leading secondary schools, Ballarat is a key education and research centre, attracting students and professionals from across the region.</span><br><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;">Construction</span></p></li></ul><span style="color:rgb(51, 51, 51);">A major driver of economic growth, underpinned by population expansion and government-backed infrastructure projects, including the Ballarat Line Upgrade and regional housing development.</span><br><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;">Manufacturing</span></p></li></ul><span style="color:rgb(51, 51, 51);">Ballarat supports over 300 manufacturing businesses, with specialties in food production, engineering, and advanced manufacturing, bolstered by industrial zones such as Ballarat West Employment Zone (BWEZ).</span><br><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;">Tourism & Hospitality</span></p></li></ul><span style="color:rgb(51, 51, 51);">A popular regional tourism destination, driven by Sovereign Hill, Lake Wendouree, and a thriving arts, culture, and events scene, attracting over 2.5 million visitors annually.</span><br><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;">Retail Trade</span></p></li></ul><span style="color:rgb(51, 51, 51);">Ballarat’s growing population supports a strong retail sector, with major shopping hubs like Stockland Wendouree and Bridge Mall, alongside thriving local businesses.</span><br><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;">Agribusiness & Food Production</span></p></li></ul><span style="color:rgb(51, 51, 51);">Surrounded by rich agricultural land, Ballarat is a key processing and logistics hub for Victoria’s agricultural exports, with a growing focus on premium produce and food innovation.</span><br><br><span style="color:rgb(51, 51, 51);"><b>Proximity to Melbourne & Regional Connectivity</b></span><br><br><span style="color:rgb(51, 51, 51);">Located just 110 km northwest of Melbourne, Ballarat benefits from direct access to the state’s capital, fostering strong economic, business, and infrastructure links.</span><br><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;">Transport Links & Commuter Access</span></p></li></ul><span style="color:rgb(51, 51, 51);">Ballarat is well-connected to Melbourne via the Western Freeway and V/Line train services, making commuting and business travel seamless.</span><br><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;">Growing Workforce Mobility</span></p></li></ul><span style="color:rgb(51, 51, 51);">Ballarat’s affordable lifestyle and job opportunities attract skilled professionals and young families, while some residents commute to Melbourne, enhancing workforce flexibility.</span><br><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;">Business & Industry Synergies</span></p></li></ul><span style="color:rgb(51, 51, 51);">Businesses in Ballarat benefit from access to Melbourne’s supply chains and markets, with local industrial zones like BWEZ supporting logistics and manufacturing growth.</span><br><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;">Property & Lifestyle Appeal</span></p></li></ul><span style="color:rgb(51, 51, 51);">Ballarat offers a more affordable property market compared to Melbourne, with strong rental demand and increasing property values, making it an attractive option for investors.</span><br><span style="color:rgb(51, 51, 51);">Lifestyle benefits such as heritage architecture, parks, and a vibrant arts scene contribute to Ballarat’s growing popularity as a regional living hub.</span><br><br><span style="color:rgb(51, 51, 51);">Ballarat is rapidly emerging as a regional powerhouse—offering the stability of established industries, proximity to Melbourne, and a growing population base—creating long-term demand for industrial, retail, and commercial property investment.</span>
Additional Location Information File<b>Ballarat Gymsports</b><br><br><p style=""><span style="font-weight:normal;">Established in 2016, Ballarat Gymsports is a leading gymnastics facility offering recreational and competitive programs for all ages, from toddlers to adults. As a Gymnastics Victoria Inclusive Leader Club, they provide specialized classes for all-abilities participants, Special Olympics athletes, and visually impaired individuals, reinforcing their strong community engagement and commitment to inclusivity.</span></p><p style=""><span style="font-weight:normal;">A great social contributor to the Ballarat region, Ballarat Gymsports plays a vital role in promoting health, fitness, and inclusivity. Their strong ties with schools, disability services, and local sporting organizations create a loyal membership base and consistent demand, making them a highly reliable tenant and ensuring stable long-term income for investors.</span></p>
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Address | Total NLA | Rent $/m2 2 Basil Way, Alfredton | 1598m2 | $94/m2 133 Learmonth Street, Alfredton | 1988m2 | $146/m2 4/42 Paddys Drive, Delacombe | 296 sqm | $145/sqm 6/27 Laidlaw Drive, Delacombe | 250 sqm | $114/sqm 3/422 Sutton Street, Delacombe | 445 sqm | $157/sqm 33 Grandlee Drive, Wendouree | 1503m2 | $145/m2 814 Latrobe Street, Delacombe | 1700m2 | $174/m2 908 Latrobe Street, Delacombe | 895m2 | $143/m2 19 Leopold Street, Alfredton | 580m2 | $337/m2 1111 Howitt Street, Wendouree | 620m2 | $455/m2 998 Norman Street, Wendouree | 302m2 | $187/m2 316 Dowling Street, Wendouree | 763m2 | $147/m2
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<b>Property Overview</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="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Land Area:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> 1,401 sqm</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Net Lettable Area (NLA):</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> 1,598 sqm</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Street Frontage:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Strong exposure with clear access for customers and deliveries</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Zoning:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Industrial 1 Zone (IN1Z)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Parking:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Ample on-site parking available for customers and staff</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Recent Construction – Strong Depreciation Benefits:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Construction completed in 2021, providing significant tax depreciation advantages that enhance investor cash flow and overall returns.</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Prime Location:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Situated within Alfredton’s growing industrial and recreational hub, just minutes from Ballarat CBD</span></p></li></ul><br><b>Financial Metrics</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Purchase Price:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>$2,500,000</b></span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Total Rent / </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Rent Net:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $150,000 / </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>$142,955</b></span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Yield /</span><span style="color:rgb(51, 51, 51);font-style:normal;"><b> Yield Net:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> 6% / </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>5.72%</b></span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Yield Net after renewal:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>6.4%</b></span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Purchase Rate (on NLA):</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $1,564/sqm</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Rent / sqm (on NLA):</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $94/sqm</span></p></li></ul><br><b>Investment Highlights</b><br><br><b>Significant Uplift Potential at Lease Renewal – Expiring December 2025</b><br>The current lease with Ballarat Gymsports expires in December 2025, presenting an opportunity for a rental uplift.<br>🔹 As part of the settlement, the vendor will secure a formal agreement ensuring that the current tenant exercises their <b>5-year option, with the rent increasing to $160,000 per annum</b>. This rental uplift will enhance the investment's performance, bringing the <b>net yield to 6.4%</b>, further strengthening the asset’s long-term income security.<br>🔹 <span style="font-weight:normal;">Potential New Value at local cap rate (5.5 - 6%) after increase:</span> <b>$2,666,667 - $2,909,091</b><br><br><b>Essential Community Tenant in a High-Growth Region</b><br>As a leading provider of gymnastics and fitness programs, Ballarat Gymsports plays a crucial role in the local sports and recreation sector, benefiting from strong community demand in one of Victoria’s fastest-growing regions.<br><br><b>Strategic Industrial & Recreational Location</b><br>Located within Alfredton’s established industrial and recreational precinct, 4km from Ballarat CBD, the property is surrounded by national occupiers and benefits from strong infrastructure investment and rising population growth in the Ballarat region.<br><br><b>Depreciation Benefits – Modern 2021 Construction</b><br>With construction completed in 2021, this modern industrial asset provides strong tax depreciation benefits, helping investors optimize cash flow and reduce taxable income over time.<br><br><b>50% Stamp Duty Concession</b><br>Investors acquiring assets in this region may benefit from a <b>50% reduction in stamp duty</b>, offering an estimated <b>upfront saving of $71,250</b>.
